1. Akshay Masand's Avatar

    Several former Foxconn employees have been charged in Taiwan for allegedly accepting kickbacks from partner companies in Foxconn’s supply chain according to The Wall Street Journal. A former general manager is being held on bribery charges and three former employees are released on bail. However, Apple and other Foxconn clients are not being investigated as authorities don’t believe those companies were involved in the kickback scheme.

    The bribery allegations were made public last year when an internal Foxconn audit revealed several employees were accepting kickbacks from supply chain companies. The company then acknowledged the criminal activity and turned those involved over to the Chinese police for investigation. Foxconn said the following in a statement regarding the matter:

    We can also confirm that our internal investigation found these violations to be limited to the procurement of consumables and accessory equipment related to a small part of our business. The employees in question are no longer with our company.
    The charges come as Foxconn has been under fire multiple times in recent years for labor violations. The company has been working with Apple to improve conditions for employees in its city-like factories but the whole process has been slow. After agreeing to having worker pay examined and limiting work hours, a recent Fair Labor Association report shows the company is now meeting the FLA’s 60-hour work week but still exceeds China’s legal limit for weekly working hours and overtime.

    We’ll have to wait and see how Foxconn handles the situation going forward.

    Source: The Wall Street Journal

    Twitter: @AkshayMasand
    2014-01-23 09:47 PM