(The
Wall Street Journal) Reports of Suicide in China Linked to Missing
iPhone By Yukari Iwatani Kane July 21,
2009.
News media in China are reporting that a
25-year-old employee of Foxconn, which manufactures products for Apple there,
committed suicide last week after being interrogated about a missing prototype
for a new iPhone.
According to publications that include
Shanghai Daily, Sun Danyong, a recent engineering graduate, jumped out of the
window of his apartment last Thursday. The reports said Sun, who had been
tasked with sending iPhone prototypes to Apple, had been under suspicion for
stealing after one of the handsets went missing. Some publications reported
that, in the days prior to his suicide, Sun had been detained and beaten by a
senior official in the security department of the Taiwan-based electronics
manufacturing giant.
Foxconn could not be reached for comment. But
some reports quoted a statement from Foxconn¡¦s general manager Li Jinming, who
apologized for what happened and attributed the incident to a lack of
management. He added that the official who had questioned Sun has been
suspended and is under investigation by the police.
A spokesman for Apple said, ¡§We are saddened
by the tragic loss of this young employee and we are awaiting results of the
investigations into his death. We require that our suppliers treat all workers
with dignity and respect.¡¨ Some English-language blogs, including Gizmodo and
Apple Insider, were critical of Foxconn¡¦s handling of the situation, pointing
out that the manufacturer has run into accusations before of harsh working
conditions. Others, such as VentureBeat, pointed to the pressure that Foxconn
and other contract manufacturers face to adhere to Apple¡¦s secrecy over its
products.
Apple is known for requiring suppliers to
sign contracts that impose hefty financial penalties if they are found to have
leaked sensitive information. One Western expat in China says that the
accusation of stealing alone would have been severely damaging for the
employee, who was likely on an elite track working in a career job for one of
Asia¡¦s premier firms.
(The
Wall Street Journal) Employee's Suicide Puts Hon Hai, Apple in
Spotlight By Ting-I Tsai. July 23, 2009.
Police in the southern Chinese city of
Shenzhen are investigating the suicide of an employee of
Hon Hai Precision Industry Co., which assembles the popular iPhone for
Apple Inc., in an episode that has put the Taiwanese company under a
spotlight.
Hon Hai, which is known by the trade name
Foxconn and makes a slew of products for the world's biggest electronics
companies, said it is cooperating with the investigation and expressed regret
over the suicide of Sun Danyong, a 25-year-old recent engineering graduate who
worked as an administrative staffer at a company plant in Shenzhen.
Hon Hai also said it suspended a security
official who had questioned Mr. Sun before his death. The security official
couldn't be reached for comment. Local authorities said Mr. Sun jumped from
the 12th floor of his apartment building in Shenzhen last Thursday.
"The group and I are saddened by the tragic
loss of this young employee," said James Lee, chief commerce officer for Hon
Hai's China operation. "My apologies to Sun Danyong's family."
Neither Hon Hai nor police disclosed further
details surrounding Mr. Sun's death or his role at the company. But in an
acknowledgment of local media reports that Mr. Sun may have been mistreated
while under questioning, Mr. Lee said, "We never authorized anyone to conduct
any moves beyond the law."
A spokesman for Apple said, "We are saddened
by the tragic loss of this young employee and we are awaiting results of the
investigations into his death. We require that our suppliers treat all workers
with dignity and respect."
According to local media reports, which
couldn't be independently confirmed, Mr. Sun was questioned about the
disappearance of a prototype of Apple's next-generation iPhone. The reports
also said he had been beaten.
The attention underscores the secrecy and
speculation that surrounds Apple's development of its newest products,
particularly the bestselling iPhone and its iPod digital music player. The
company requires its contractors to keep future product plans closely guarded,
and their work is often the subject of scrutiny by journalists and industry
watchers.
Hon Hai in particular has been under a
spotlight for its work with Apple. In August 2006, Hon Hai sued two Chinese
journalists in Shenzhen for reporting workers assembling iPods in its Shenzhen
factory were forced to work overtime. It denied the accusation, but withdrew
the case weeks later as public pressure against it mounted.
Mr. Sun's death has sparked a public backlash
in China, where Hon Hai's hierarchical management style has been the subject
of criticism. In its statement Wednesday, Hon Hai said Mr. Sun's death was a
sign of management problems and vowed to do a better job to help its employees
with psychological pressures. "Sun's suicide, no matter what, to a certain
extent reflects the inadequacy of our internal management," the statement
said.
(People's
Daily) Suicide of Foxconn employee puts China's white-collar
workers under spotlight July 24, 2009.
The suicide of Sun
Danyong, an employee of Foxconn Technology Group, after a sample Apple iPhone
had gone missing, has been hotly discussed by the international media for
days, according to a report by the Global Times on July 24.
At a time when China's economy is rapidly developing, this tragedy reveals the
fragility underlying the glorious appearance of China's white-collar workers.
Sun's death raised doubts from the Western media about Apple Incorporated's
culture. Forbes.com said ironically that the design of Apple's next-generation
mobile phone is so "priceless" that it has claimed the life of a young Chinese
engineer held responsible for misplacing a prototype. Reuters published an
article on July 23, saying that the Foxconn employee's suicide "puts a
spotlight on the secretive Apple culture."
A Reuters' report said that the incident "sparked a Web firestorm in China."
Many posts were made by Western readers in response to the article. A US
netizen said that companies which transfer production abroad only care about
money, not the people who work for them.
Foxconn has also faced severe criticism. The US based Computerworld.com said,
"Allegations of trouble with Foxconn workers in China have bitten Apple
before. The US company and its relationship with Foxconn was brought to light
three years ago when a British newspaper wrote about allegedly poor pay and
long hours for iPod assembly line workers."
(Hinews.cn)
Sun Danyong's final chat session with friends Jiang Xiaocui and Gao Ge.
The chat session began at 23:53 on July 15 and ended at 1:26:27 on July 16.
Sun: I have never in my life been insulted
twice as far as I can remember.
Jiang: What does that mean?
Gao: Brother Yong, what is up? What?
Jiang: Yes, we are all very worried.
Gao: Brother Yong?
Sun: Do you remember that a fellow student gave
me 100 RMB in the second year of school? I did not know whether the money
was fake or real. When I got back to the dormitory, my friends borrowed it.
The fellow student then asked for the money back. We spent a whole morning
on the issue of whether the money was fake or real.
Gao: Is it a virus?
Jiang: I don't know.
Gao: It is not a virus. Brother Yong, are
you okay?
Sun: In the afternoon, he brought along a
underworld person. I gave him back the several tens of dollars that I
owed.
Jiang: And then?
Sun: Gao Ge, it is alright. I just want
to say what I feel in my heart.
Gao: What about this time?
Sun: That evening, I was bullied by him and
another guy in the dormitory. There were lots of people in the dormitory.
Since the lights were about to be go out, everybody lent me some money to
get rid of those people.
Gao: That is too unseemly.
Jiang: And then?
Sun: I was frightened out of my wits by a small
knife. When they left, I was punished to kneel.
Gao: What kind of people are they? This
is going too far.
Gao: It is a dormitory, after all.
Gao: They are not good people.
Sun: Later on, I saw that person again on
campus. I found out that he was fucking one year ahead of me in
university. I don't know what those people outside the dormitory do.
Sun: On the first day since I joined the
company, I have never taken anything.
Sun: But I am really bad in my work. It
is a matter of human ability.
Gao: And then?
Gao: As long as you work seriously.
Sun: Ever since 88EVT began, all the equipment
went through my hands. Nothing every went wrong, possibly because Song Mei
kept leading me on the work.
Sun: I have never taken anything. I did
not take the phone that was missing this time.
Sun: I am really not good with my work.
There were so many problems.
Gao: But they are two different problems.
Gao: One is about ability and the other is
about character.
Gao: Who framed you up?
Gao: Brother Yong, you calm down first and
review the entire incident.
Gao: You see what went wrong.
Sun: I have thought about it carefully.
There are only two possible ways for the phone to go missing. Someone took
it unintentionally before I packed it. Or someone deliberately took it
that night or the next day.
Gao: I know that you are not that kind of
person. But you can't be sure that other people will do you harm and you
can't always afford to let your guard down.
Gao: How serious are the consequences?
Jiang: Is there any way to go back and find it?
Foxconn must have monitoring processes.
Sun: The box was sealed with security tape and
the place where I put it also has security tapes. Someone had moved the
big box.
Gao: How does it affect you?
Sun: I waited three days after it went missing
before telling the supervisor, because I kept trying to find it. I thought
that the phone must be still on the production line. I wanted to deal with
the matter myself. But I was really unable to find it. I knew that
if the phone goes outside, it will have severe consequences for the company.
So I called Jeff and I told him.
Gao: I don't understand anything about what you
say about that thing. First, tell me how much responsibility do you bear?
Sun: Dear Supervisor Jeff, I was late to work
on my second day. On Monday night, my girlfriend arrived at the Longgang
bus station (Shenzhen) at 2am. There were no more buses, so I could not
get back. I stayed over there for the night. I hurried back the next
morning. Although I have no money, I am not interested in the iPhone.
These are my honest words. There is whole bunch of them in room C034F.
In my eyes, they are just objects. They give me a headache. I don't
know how to dealt with them.
Gao: Brother Yong, are they suspecting now that
you did something wrong?
Sun: The security people made me give a
statement today. I spoke honestly from my heart. Everything was true
with no lies. Some aspects are going to arouse suspicion. I can
understand you, because I would be the same if it were up to me.
Sun: But I cannot accept the insult against my
character by the security people.
Gao: What happened?
Sun: Even down at the police station, there are
laws against the application of force. Besides, this is just a
corporation.
Sun: I am merely a suspect. Dear Security
Department director Gu Qinming, on what grounds and qualification do you have to
detain me and use force on me?
Gao: They hit you!
Gao: Brother Yong, I don't think that you can
stay there.
Gao: Did they leave any evidence behind that
shows that they hit you?
Gao: Brother Yong?
Gao: Everybody will run into mishaps and
setbacks, and be misunderstood or bullied. Who can live in this world with
smooth sailing all their lives?
Sun: Gao Ge, you are up so late. How come
you are not in bed yet?
Gao: Please do not give up. Please do not
over-react.
Sun: I can accept that I am responsible for
losing the phone. I am deeply sorry. But I did not fucking take it.
Gao: I am still in France.
Gao: Brother Yong, the innocent know that they
are innocent. Besides some things are unclear.
Gao: But they shall pass.
Sun: Foxconn is really big and strong.
But it is actually a good place. But that pack of dogs is really not
human.
Gao: What is Foxconn?
Sun: The name of my company.
Gao: What does it do?
Gao: Is there a Chinese name?
Sun: Really, in my memory, I have only been
insulted twice this way.
Gao: Be strong.
Gao: Because of this, you should live well and
show those dogs later.
Sun: But this time, the serious consequences
are only about to come. They can beat again at will and they can make up
some excuse at will and dump me with the public security bureau? I really
don't know.
Gao: Brother Yong, from this moment on, you
must pay attention and preserve any evidence again. But you must relent at
the right time.
Sun: That room in which they keep people does
not have a camera. That is so fucking awesome. I have been to
C021.5F so many times. This was the first time that I found out that Gu
Qinming has this paradise. I don't know how many people have been bullied
there before.
Gao: A big man knows how to bend as well as
extend.
Gao: Fuck.
Gao: They are too fucking nasty.
Sun: Dear Jeff, please do not tell other people
that I have a 68. When you gave me that iPhone that day, I immediately
gave it to Baojuan. Not necessary for any reason, but because I thought
that Baojuan and Song Mei both arrived before me but they have never received
anything. I felt sorry. It was clearly tough for a girl to do
shipping. Besides she is the only [mistype] in the department. When
I was 18/19 years old, I would also start thinking about things, even though she
is just a small child before us.
Sun: There are so many regrets left. I
really don't want to give up.
Gao: Brother Yong, what is up with you?
Gao: You are doing fine.
Sun: Do you remember that remember that you
paid 50 RMB on my behalf. I had also advanced 100 RMB to Baojuan. So
this means that you gave Baojuan the money directly. I am really embarrassed.
Gao: Brother Yong?
Gao: What do you mean?
Gao: Why are you saying this?
Sun: I have been in that department for almost
one year. Really, I am really grateful to the various colleagues in the
department. It has been really delightful to be with you, especially my
dear supervisor Jeff. I am really grateful to you. All the problems
that I caused previously in my work were dealt by you with the clients, so that
things were managed.
Gao: Brother Yong, I get more and more confused
by what you are saying. Oh, oh.
Gao: You talk about yourself.
Sun: I am truly grateful to you. But let
me say something frank. If I have to choose between you and Rouger as
manager, I would choose Rouger. You are a good person. Whenever
there are problems, you help me to deal with them. But I have to be frank
that I feel oppressed in front of you because I have nothing to say. I still
like Rouger. I would rather be scolded. Even though Rouger does not
have a good personality, he has his good points. I have come into contact
with him several times. I felt very natural when I spoke to him. I
can find something to say. Ho, ho, that is really interesting.
Sun: I hope that someone can fix Foxconn up so
that it does not fucking resemble a triad organization. They can search
people's home at will. They can detain people at will. They can beat
people.
Sun: It is one thing to search my home today.
But they even searched the home of the girl in the RDDQE department.
When the police search someone's home, they need to have a search warrant.
They will let people make their statements no matter how
exaggerated/ignorant/incredible. Very few people not in the department
will believe that I did not take the phone.
Sun: To the various colleagues in the
department, let me say one last time: I did not take that N90 machine.
Sun: Gao Ke, are you still there?
Gao: I am.
Gao: Brother Yong.
Gao: I have been listening all along.
Sun: We have seen each other for a long time.
I miss you.
Gao: Me too.
Gao: Let us all get together later.
Gao: What do you think?
Sun: I hope so.
Gao: What do you mean by hope?
Gao: We will definitely meet.
Gao: I am going to Shenzhen to see you.
Sun: I am really speechless at being bullied.
Dear director Gu Qinming, I hope that you get your just rewards soon.
Although you can beat me and although you can produce another machine soon, it
is because Foxconn is powerful, not you.
Sun: Yes, there is something else. I am
just paying off the interest portion on the student loan. I hope that it
won't affect lending to the other younger students. I am really sorry
about this affair.
Sun: I am going, Gao Ge. Rest well.
When you know that you won't have to be bullied and used as a scapegoat
tomorrow, you will feel a lot better inside.
Message from Sun Yandong at 1:57:09 on July 16:
How have you been recently. It was fucking depressing today at the
company. Something like this can even happen in a Top 500 company.
Not only was I beaten, but those bastards inspected my mobile phone, searched my
home and detained me.
Message from Sun Yandong to his girlfriend at
just after 3pm on July 15: "Dear, I am sorry. Go home tomorrow. I am
in trouble. Please don't tell my family. Do not contact me. I
beg you to promise me! I am really sorry about you ..." When she
received this message, it was 1:48 on July 16. She called him but there
was no answer. At 4pm or so, the militia police came to find her.
Here are the SMS records between Sun Yandong
and his girlfriend.
She: Husband, you should come home early for
dinner (15:10 July 15)
He: It's alright. I have to look for a
job anyway (17:32 July 15)
She: That's right. I don't think that
this job is that great. If we go back, we can find work.
She: When are they going to let you come back
tonight?
He: I'm at the office. I'll be back
shortly.
She: When will you be back?
He: I don't know. The supervisor is still
investigating. I also want to find out where the problem was.
She; Good. No need to hurry.
It is better to investigate thoroughly. I will wait for you to have
dinner.
She: They are not letting you go?
He: Don't contact me.
She: Are you coming back tonight?
He: Don't know. Don't ask.
She: Wooooo ... I am worried about you! I
will wait for you to come back. You must be strong.
He: Dear, I am sorry. Go back home
tomorrow. I am in trouble. Please do not tell my family at any cost.
Please do not contact me. This is the first time that I have ever begged
you for anything. Please promise me! I am really sorry about you!
(01:48 on July 16)
Yesterday afternoon, the reporter viewed the
surveillance tapes at the scene.
At 1:44, Sun Yandong entered the Xiaoli Garden
district. He walked over to the road into the A2 building where he lived,
took a look and then headed into the elevator of the A3 building. The
surveillance camera inside the elevator showed that he pressed the 12th floor
button. Upon arriving on the 12th floor, he exited and took a left turn. Just
as the elevator door closed, the surveillance camera recorded him standing on
this toes looking down from the window in the hallway. The surveillance
camera on the 12th floor was situated at the far end of the hallway, but it is
still possible to tell that he was seated motionless on the window sill. This
continued for more than one hour. At 3:33:52 on July 16, the surveillance
camera on the ground showed Sun committing suicide by leaping down.
Surveillance tape of the first interrogation
(July 15)
12:36:01 Sun Danyong enters the Environment
Security Department office (which is a partitioned office consisting of cubicles). Sun
walked in
first followed by a department worker.
12:36:14: Sun and the worker sat down facing
each other and a desk between them. The interrogation began. The
statement material was placed on the desk. There was no body contact.
The mood was relaxed and the scene was calm.
13:42:43: A female worker came in and asked the
investigator to come out. Several minutes later, the investigator returned
and continued with the note-taking.
13:52:32: The two leave together.
There was nothing unusual.
Surveillance tape of the second interrogation
(July 15)
21:06:16: Sun Danyong entered the cubicle of
the Environment Security Department director. There are two to three
workers around them. A janitor was cleaning nearby. There did not
seem to be any noise that would attract the attention of these people.
21:23:01: The Environment Security Department
director Gu Qinming got up and tugged Sun Danyong's right shoulder. Then
he sat down again. Sun began talking to another colleague outside the
office. No further physical contact could be seen again.
21:38:23: Sun Danyong's supervisor Jeff arrived
at the office and went immediately to the director's cubicle and listened in
over the wall. Meanwhile, other workers continued to move around in the
office.
22:41:43, Sun Danyong came out of the cubicle.
He showed nothing unusual on his face. He spoke to his colleagues on the
side. According to Jeff, he chatted with Sun and then they both went back
to the office.
Chinese-language television news reports
¡@
¡@
¡@
(The
New Yorker) Death at an Apple manufacturer in China. By Evan
Osnos. July 24, 2009.
Interesting details are emerging in the
Chinese press about the case of Sun Danyong, the twenty-five-year-old
employee of Foxconn who committed suicide in Shenzhen last week after being
interrogated about a missing prototype for a new iPhone.
The case has thrown
an uncomfortable spotlight on past accusations of workplace abuse at
Foxconn, which manufactures products for Apple, and the culture of secrecy
imposed on Apple¡¦s manufacturers abroad. (A spokesman for Apple
has said it is ¡§saddened by the tragic loss of this young employee and
we are awaiting results of the investigations into his death.¡¨) The Chinese
press initially
reported that in the days before he leapt from his apartment window Sun
had been detained and beaten by a senior official in the security department
of the Taiwan-based company. Some new twists:
A reporter at the newspaper Southern
Daily
claims to have viewed surveillance footage of two sessions of Sun¡¦s
interrogation and says that they show no evidence that he was beaten or
locked up. If true, this would contradict earlier reports in the Chinese
press alleging that Sun was beaten. Chinese commentators are saying that,
whether or not the abuse was physical, the case was mishandled.
¡@
In a
separate report in Southern Daily, Gu Qinming, the security
manager who interrogated Sun, said he had suspected that Sun was lying and
therefore talked to him on two occasions, in an office, to get further
details. Gu said he suspected Sun of incompetence, and that it was Sun
himself who suggested that Gu search his home. Gu maintains that he never
beat or confined Sun and only jabbed him in the shoulder¡Xafter Sun blamed
a female colleague for the missing phone¡Xasking, ¡§Are you a man?¡¨
Incidentally, Gu¡¦s name has spread widely on the Chinese Internet, along
with his address and personal details, and he told Southern Daily
that he is unable to return to his house.
Tomorrow, I¡¦ll have more, on the culture
inside Foxconn and Sun¡¦s final days.
(The
New Yorker) More on the iPhone suicide. By Evan Osnos.
July 24, 2009.
After being interrogated by his factory
managers for losing an iPhone prototype, Sun Danyong jumped from the twelfth
floor of his dormitory at 3:33 A.M., on
July 16th. He left behind a poignant electronic trail that provides one of the
most revealing views that I can remember into life in the factories of
southern China: who works where, why, and in what conditions. Much of this
remains unconfirmed, but the dramatic story contained in text messages,
instant messages, and bulletin-board posts would never have been recorded ten
years ago.
Sun was an archetypal member of the factory
world of Shenzhen. The Chinese press has a tendency to mythologize figures who
have attracted public support, but his
basic bio seems clear: He was twenty-five years old and noticeably quiet.
He grew up in an isolated mountain village called Long Tan, in the
southwestern province of Yunnan. The family was poor enough that Sun would
erase the old pencil notes from his school notebooks and reuse them multiple
times. He was smart and went on to graduate, last year, from Harbin Institute
of Technology, one of China¡¦s best schools, with a bachelor degree in business
administration. When he graduated and started working in Foxconn last year, he
told his parents, ¡§From now on you don¡¦t have to work so hard, you should
enjoy a little,¡¨ according to a
profile
in Southern Daily.
In his final hours, Sun told several
people about the missing phone and the security department¡¦s interrogations.
Chinese newspapers have
published what they describe as cell-phone text messages that Sun¡¦s
girlfriend says she received in the final hours before his death. The last
message is said to have arrived at 1:48 A.M.,
less than two hours before he died: ¡§My dear, I¡¦m sorry, go back home
tomorrow, something has happened to me, please don¡¦t tell my family, don¡¦t
contact me, this is the first time that I have ever begged you, please agree
to that! I am so sorry!¡¨
Another record has emerged of what is
described as a
final online chat with old college friends, on the Chinese Web site QQ.
In a troubled, rambling exchange that has been
confirmed as authentic by one participant, Sun insists he never stole
and hypothesizes that someone had swiped the prototype without his noticing,
or had pulled it out of the box after he had sent it. Describing the role of
a security chief¡Xwho has denied using force¡XSun wrote, ¡§Even at a police
station, the law says force must never be used, much less in a corporate
office. I was just a suspect, my dear head of security, so what reason and
right do you have to confine me and use force?¡¨
His final line of the conversation: ¡§Right
now I am paying the interest on my student loan. I hope this will not affect
the chances of younger people applying for loans. I am sorry for this. Bye,
Gao Ge [a college friend], rest well. Thinking that I won¡¦t be bullied
tomorrow, won¡¦t have to be the scapegoat, I feel much better.¡¨
Chinese police are investigating the case,
including whether or not Sun was brutalized. But the Chinese media and
bloggers have surged to the case as a sign of workplace pressure gone awry.
They have
posted what they say is a Foxconn confidentiality and non-compete
agreement, which promises fines for workers who break it. More
fundamentally, they have enshrined the story of Sun Danyong as a bitter
symbol of China¡¦s industrial age.
(New
York Times) IPhone Maker in China Is Under Fire After a Suicide
By David Barboza. July 27, 2009.
When a closely guarded prototype of a new
Apple iPhone went missing at a huge factory here two weeks ago, an internal
investigation focused on a shy, 25-year-old employee named Sun Danyong.
Mr. Sun, a college graduate working in the
logistics department, denied stealing the iPhone. But he later complained to
friends that he had been beaten and humiliated by the factory¡¦s security team.
On the night he was questioned, he sent an anguished text message to his
girlfriend.
¡§Dear, I¡¦m sorry. Go back home tomorrow,¡¨ he
wrote, according to a message she later posted online. ¡§I ran into some
problems. Don¡¦t tell my family. Don¡¦t contact me. I¡¦m begging you for the
first time. Please do it! I¡¦m sorry.¡¨ Soon after, in the early-morning hours
of July 16, Mr. Sun apparently jumped to his death from the 12th floor of an
apartment building in what his employer, Foxconn Technology, says was a
suicide.
Apple and Foxconn, one of the world¡¦s biggest
manufacturers of consumer electronics and a major Apple supplier, issued
statements last week expressing sorrow for the death. Foxconn said it
suspended one security officer, pending a police investigation, and that the
company was now considering counseling services for its employees.
The Apple statement said: ¡§We are saddened by
the tragic loss of this young employee, and we are awaiting results of the
investigations into his death. We require that our suppliers treat all workers
with dignity and respect.¡¨ The company would not comment further.
The local police bureau declined to answer
questions about the case. But reports of the apparent suicide have set off a
firestorm of criticism of Foxconn¡¦s treatment of Mr. Sun, labor conditions at
its factories and the pressures Apple places on suppliers to abide by the
culture of secrecy that surrounds its development of new products.
The case also underscores the challenges that
global companies face in trying to safeguard their designs and intellectual
property in the hotly contested smartphone market, particularly here in the
southern Chinese city of Shenzhen, an electronics manufacturing center known
for piracy and counterfeiting.
Apple¡¦s popular iPhone is already widely
imitated and counterfeited in China. And there are regular rumors on Chinese
Web sites about new Apple prototypes leaking out of Chinese factories.
¡§When you outsource to a third party, you
lose some control,¡¨ says Dane Chamorro, general manager in China at Control
Risks, a global consulting firm. ¡§And if you¡¦re outsourcing to China, it¡¦s
going to be even more challenging. There¡¦s going to be a bounty on every
design.¡¨ Labor rights groups say the worker¡¦s death should compel Apple to
improve conditions at its supplier factories in China and prevent worker
abuse.
Foxconn, part of Taiwan¡¦s Hon Hai group, has
also been sharply criticized because of suspicions about unduly harsh
treatment of the worker.
Foxconn, which produces electronics for some
of the world¡¦s best-known brands, like Sony and Hewlett-Packard, operates a
cluster of sprawling factories in southern China. One of its Shenzhen campuses
has nearly 300,000 workers.
But some labor rights activists say the
company treats employees harshly, routinely violating labor laws.
In an e-mail message on Thursday, China Labor
Watch, which monitors Chinese factories and is based in New York, blamed Mr.
Sun¡¦s death on ¡§Foxconn¡¦s inhumane and militant management system, which lacks
fundamental respect for human rights.¡¨ The group said it published an in-depth
study of Foxconn last year, detailing its abuses.
James Lee, general manager of China
operations at Foxconn, defended the company¡¦s labor practices in a lengthy
interview on Friday, and also said the company would strive to improve
management of its facilities.
¡§It¡¦s very difficult for the company to
defend itself against such charges,¡¨ Mr. Lee said of complaints from labor
rights groups. ¡§You¡¦re welcome to look at how employees are treated here.¡¨ A
reporter toured two of the company¡¦s campuses in Shenzhen on Friday, including
the one where Mr. Sun worked. The campuses were so large they contained retail
stores, banks, post offices and high-rise dormitories with outdoor swimming
pools.
The reporter was not allowed to see
manufacturing lines because the company said it had to protect trade secrets.
Outside the gates of one campus, most workers
interviewed independently of the company said they were well treated. One of
about 15 workers questioned admitted to being forced to work overtime above
the legal limit.
In his interview, Mr. Lee, the Foxconn
manager, said the company also had a duty to protect the intellectual property
of its customers, and that it was honestly seeking answers to what happened to
the product.
Foxconn said it still does not know what
happened to the missing iPhone. The company said Mr. Sun was given 16
prototypes on July 9 or 10 to deliver to research and development, and failed
to report one missing until three days later.
The company says his explanation for the
missing phone did not seem credible and that he had had problems before.
¡§Several times he had some products missing,
then he got them back,¡¨ Mr. Lee said. ¡§We don¡¦t know who took the product, but
it was at his stop.¡¨ In an interview with Southern Metropolis Daily newspaper
last week, the security officer suspended by Foxconn denied beating Mr. Sun,
saying only that he ¡§became a little angry¡¨ and grabbed Mr. Sun¡¦s right
shoulder.
Even so, the company paid compensation to Mr.
Sun¡¦s family. It declined to say how much, but Mr. Sun¡¦s brother cited a
figure of 300,000 renminbi, or more than $44,000, and said Mr. Sun¡¦s
girlfriend was also given an Apple laptop computer.
Mr. Sun¡¦s brother doubts he stole the
prototype.
¡§He was honest and modest. He would never
steal anything,¡¨ said Sun Danxiong, 28, his brother.
Mr. Sun grew up in a small, impoverished
village in southwest Yunnan province and ranked first in his high school, his
family says. He graduated from the Harbin Institute of Technology, one of the
nation¡¦s top schools, before joining Foxconn about a year ago.
On Thursday, with his son Danxiong standing
nearby, holding a box with Sun Danyong¡¦s ashes, the father, Sun Yangdong, said
Foxconn had treated the family well. But he said he was still in shock that
his son could leap from a building because he was so gentle and tender.
Soon after, a security guard, who was joined
by two men wearing Foxconn shirts, threatened to ¡§beat up¡¨ a journalist¡¦s
translator if she persisted in asking the family questions. Foxconn officials
later said the guard was not on their staff and might have been with the
police bureau.
Back in Yunnan, Mr. Sun said that on the
night of his brother¡¦s death, he had e-mailed friends, angry about Foxconn¡¦s
questioning of him. In one message, Mr. Sun said he was locked up and beaten.
¡§A Fortune 500 company even has these things,¡¨ he wrote.
On Sunday, Danxiong said some of his
brother¡¦s friends told him Mr. Sun killed himself out of anger at Foxconn. His
brother said: ¡§They told me he was extremely angry at Foxconn; they humiliated
him and he wanted to resist the company, and planned to do something big.¡¨
(Los
Angeles Times) Product secrecy and a worker's death
By David Pierson and Alex Pham. July 29, 2009.
Reporting from Los Angeles and Beijing -- Sun
Danyong was the mild-mannered son of a potato-farming family in an
impoverished corner of south-central China.
When he was offered a job at a sprawling electronics factory in the boomtown
of Shenzhen last year, he accepted, figuring the experience would spur him to
better opportunities one day back in his home province of Yunnan.
He never got the chance. On July 16,
25-year-old Sun leaped to his death from the 12th floor of his apartment
building after becoming embroiled in a factory probe over a missing
prototype of a new Apple iPhone.
Now Sun is quickly becoming a symbol of the psychic toll inflicted on young
workers in many of China's pressure-filled factories. His death has also put
scrutiny on Apple and its obsession with control over its products.
A police investigation has been launched to determine the possible
culpability of a now-suspended factory supervisor, who was accused of
abusing Sun during an interrogation.
¡@
Apple has not been accused of any wrongdoing,
but the company's zealous protection of its product designs may have put
added pressure on factory managers to find the missing prototype, according
to at least one analyst.
The Cupertino, Calif., company in 2004 filed a lawsuit against an Apple
enthusiast website, alleging that it infringed on the company's trade
secrets by soliciting insider information; the suit was settled in Apple's
favor. The company also won the right to subpoena writers associated with
two other fan sites in 2005 in an effort to identify the Apple employee who
had divulged details about an upcoming product.
A missing prototype would be considered a very serious breach, one that
could mean repercussions for any company considered responsible, said
Charles Golvin, an analyst with Forrester Research in Cambridge, Mass. And
if one factory loses an Apple contract, another stands ready to step in.
"These companies are competing heavily for Apple's business," Golvin said.
What role, if any, that played in the factory's actions toward Sun is not
yet known, but Apple pointed out that it has a program to monitor the
working conditions of its suppliers that includes provisions against "mental
coercion" and "inhumane treatment."
"We are saddened by the tragic loss of this young employee, and we're
awaiting results of the investigations into his death," Apple spokesman
Steve Dowling said. "We require that our suppliers treat all workers with
dignity and respect."
Apple said it would wait for the results of a Chinese investigation into the
suicide before taking any action.
The death has also resurrected questions about Sun's workplace, Foxconn
Technology Group, a giant Taiwanese-owned company that has made iPods and
Dell computers and has been accused in the past of sweatshop conditions.
"Someone needs to take responsibility for his death," Sun's brother, Sun
Daxiong, said in a phone interview. "He was pushed too hard by his job. He
was humiliated and forced into this situation. This tragedy could have been
avoided."
The details surrounding Sun Danyong's death remain murky. Local media
published purported online chats between him and friends hours before he
died.
The narrative now coalescing and gaining traction across Chinese Internet
message boards goes like this: Sun was assigned to mail 16 of the
new-generation iPhones to Apple on July 10. When one was discovered missing
days later, internal security blamed Sun. He was allegedly detained,
interrogated and beaten at the factory while his apartment was illegally
searched. Soon after, he jumped to his death.
"Not only was I beaten, but those bastards inspected my mobile phone,
searched my home and detained me," read one of Sun's text messages an hour
and a half before his suicide, according to the Southern Metropolis Daily.
Officials at Foxconn declined to be interviewed but released a statement
apologizing to the family and saying no employee was authorized to break the
law in the internal investigation.
The company said it was cooperating with police and had suspended without
pay a security supervisor in charge of questioning Sun.
Taking note of the Internet message traffic over the tragedy, the company
added: "We welcome the public opinion to help Foxconn to examine the
shortcomings of management."
Workers advocates say the responses are not
good enough. They believe Apple needs to reexamine its relationship with
Foxconn, which also goes by the name Hon Hai Precision Industry Co. and is
owned by Taiwanese billionaire Terry Gou.
China Labor Watch called Foxconn's pledge to review its management an empty
promise. The New York workers rights group released a report last year
alleging forced overtime, unpaid wages and poor dormitory conditions.
The group said employees toiled in a
"dehumanizing" environment where they underwent "brainwashing" to adhere to
rules. The group said there was one advantage to working in the Apple
division: Workers are given stools.
It's unclear how Apple will react to the
latest controversy. When news broke several years ago that Foxconn was
underpaying workers to make iPods, Apple responded by bolstering its audits
and pushing harder for international standards for working conditions, said
Stephen Frost of Corporate Social Responsibility in Asia. He noted that
Foxconn's total revenue last year, $59.35 billion, was greater than Apple's
$32.4 billion (though its profit margin was much slimmer).
A company such as Foxconn, which has plants
across the globe, does not need to depend on Apple's business, Frost said.
"That's a big issue because the perception is clients can boss around
manufacturers and force certain things into the supply chain," he said. "It's
not clear to me that Apple can just walk in there and sort this out."
Though hardly perfect, Frost said, Foxconn
does not rank among the worst offenders in China when it comes to labor
practices. He said its task is complicated by having so many clients in
competition with one another -- making security between the factory lines
crucial, especially for high-profile products such as iPhones that rely on
surprise for marketing.
Labor activists said that emphasis on
security places immense pressure on factory workers. "Foxconn doesn't have a
very good reputation in terms of management," said Geoffrey Crothall, a
spokesman for the Hong Kong-based China Labor Bulletin. "It's like a fortress:
very tightly run. It has a security department that plays a major role in
management."
He Jiankang works in the research and
development department of Foxconn in Shenzhen. He said it was difficult
adjusting to the job. He's not paid overtime if he doesn't meet his assigned
goals for the day in time; he's not allowed access to the Internet at work and
he's banned from bringing in electronic equipment such as an MP3 player. But
he said what worried him the most was the threat of being scrutinized by the
factory's security officials.
"If those guards do come to you, for sure
you'll feel a lot of pressure," said He, 27. "For a young guy like me, the
pressure is absolutely overwhelming."
The security supervisor suspended and under
police investigation in Sun's death is now the target of online vigilantes.
At www.foxlife.cn, a website devoted to
Foxconn employees, Web users gathered personal information on the supervisor,
Gu Qinming. They posted his cellphone number, office address, badge number,
date of birth and hometown. "Lets find a day off and beat him with bricks,"
one post says.
Gu, whose phone numbers rang unanswered, told
the Southern Metropolis Daily that Sun was uncooperative during his interview
and that he could not understand why he was being blamed for the man's
suicide. "Sun Danyong was very shy," Gu told the paper. "He talked slow. I had
to push him to get an answer. But he didn't have an explanation" for the
missing phone. "On the Internet, I look like a murderer," he said. "Everyone
thinks I'm the one who pushed him to commit suicide. Sometimes I ask myself,
'What did I do to him?' "
Sun's older brother is still searching for
answers, but for now, he said he must comfort his parents, who have spent
recent days crying uncontrollably. "Three hours before he died, I was chatting
normally with him on the Internet," said Sun Daxiong, 28. "I couldn't know
what was going on in his head."