Saturday, October 6, 2012

Apple Inc. (NASDAQ:AAPL) Update: Foxconn Refuses Reports Stating China iPhone Plant Facing Strike

A Taiwanese made-to-order electronics firm, Foxconn that is responsible for assembling Apple Inc.(NASDAQ:AAPL)’s products has denied reports that state that a plant in China was crippled by a strike. It said that its production is on schedule at a crucial time for Apple.

A report of a strike submitted by a China Labor Watch came weeks after Apple rolled out its largest ever international bulk of iPhone 5 smartphones. Apple is already having a tough time with tight availability of the phones in the stores, as reported by analysts.

The labor group reported that 3,000 to 4,000 employees went on strike at Zhengzhou complex of Foxconn on Friday, enraged by the over-exacting quality controlled as well as demands they have to bear through week long National Day holiday.

Foxconn Technology Group, whose headquarters are in Taiwan, has denied such reports and said that the plant has suffered only a few small disputed some days back.
The company said in an emailed statement that any report of an employee strike is not true and that there has been no stoppage at workplace in that facility.

Foxconn mentioned that the quarrels took place on 1st and 2nd October and were addressed right away, including provision of extra staff for the lines in question.

Foxconn also said that worker, who worked over China’s National Day Break did so and were paid three times their general hourly compensation.

However, Xinhua news agency of china has cited a government spokesman in Zhengzhou that some 100 quality inspectors at Foxconn has refused to work for an hour on Friday. The report also stated that one was beaten by enraged workers over inspection demands.

The unnamed spokesman said that the instruction to bolster quality inspections for the iPhone 5 was provided by Apple following multiple companies from clients regarding aesthetic glitches in the phone. 

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