Foxconn Technology Group

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Recommendations to Foxconn:

- Provide inflation indexed wage increments at the least as to provide monetary sustainability to the workers

- Stringently adhere to labour laws in terms of work environment, working hours, day offs, providing employment benefits, non-discriminatory attitude towards employees especially between migrants and non-migrants

- Pursue similar initiatives as counselling and psychiatric services even at the manager levels have a robust grievance redressal mechanism

- Constant audits through external agencies to obtain objective feedback and improve on the same

- Collaborate with other EMS providers and enhance the bargaining power to increase margin of operations

- Try to combat monotony in workers lives through job and shift rotations, cultivate bonding amongst peers as this will play a vital role in supporting each other through difficult periods

- Consider initiatives towards the overall development of an individual, example: Skills based training to workers as most of them are just high school pass outs

- Work on a policy level with Chinese state towards providing equal rights for migrants through removal of hukou system

- Explore the possibility of forward and backward integration, Foxconn possesses relevant expertise, if successful could reap 35-40% margins and accordingly share the benefits with employees and workers.

Recommendations to Apple:

- Supplier code of conduct: Clauses in contracts with EMS providers to ensure minimum wages and better work conditions along with strict rules against Prevention of Underage Labour, Prevention of Involuntary Labour and Human Trafficking, Anti-Harassment and Abuse, Anti-Discrimination and other relevant rights of labour.

- Empowering workers: Divert a certain % of profits towards the employee welfare initiatives amongst their supplier firms this could also be a part of their CSR activities

- Building a conducive environment: Collaborate with suppliers to enforce strict environmental policies and protect workers with the right equipment and safety measures.

- Checks and balances: Follow up with the investigative report and recommendations and implement them effectively this can be effected through adherence to strict turnaround times

- Auditing: Initiate visits to the workshops to ensure proper implementation and observance of worker related clauses

- Rating and recognition: Explore the possibility of rating ESM’s based on their performance in terms of providing facilities and benefits to worker and feedback about workplace from the workers

- Engage with the communities: Build social capital amongst the workers this also helps in enhancing the brand equity and resembles a sense of belongingness

These are a few initiatives to address the situation and it has to be understood that they are neither exclusive nor exhaustive, these need to be supplemented by a concerted effort on part of government, society and even the workers so as to mitigate the occurrence of these instances.