Manufacturer hopes controversy will end if it stops housing workers

Foxconn to drop factory town model

Foxconn has announced that it will make significant changes to its business plan and abandon the ‘factory town’ model that has characterised it in the past.

According to the Financial Times, CEO and founder Terry Gou told shareholders at Foxconn’s annual meeting that the structure of Chinese manufacturing had to change.

One proposed measure was to sell the worker dormitories to the Chinese Government, effectively making them responsible for the workers well being.

“If a worker in Taiwan commits suicide because of emotional problems his employer won’t be held responsible, but we are taken to task in China because they are living and sleeping in our dormitories,” noted Gou.

“Today we are going to return these social functions to the government.”

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