Foxconn Technology closes its plant in China after 40 people were injured in a brawl
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Foxconn Technology Group closed its plant in Taiyuan

Foxconn Technology Group

Foxconn Technology Group based in Taiwan has closed its plant in Taiyuan in the northern part of China as a result of a brawl that rose out of a personal dispute. The brawl involved as many as 2000 workers out of whom 40 were injured in one of its dormitories late at night of Sunday, September 23.

The incident at Taiyuan plant of Foxconn:

The Foxconn Taiyuan plant employed nearly around 79,000 workers and manufactures electronic components for automobiles along with precision moldings and other electronic components for consumers. According to one of the employees of the Foxconn Taiyuan plant, it also produced various parts and assembled the New iPhone 5 from Apple. In a statement made by the Foxconn Technology Group nearly 40 people had to be taken to the hospital for medical treatment a quite a number of them were arrested as well. The brawl which ultimately led to the Foxconn's China plant shut down emerged as a result of some personal dispute among the employees of the plant on Sunday around 11 p.m. The chaos that was finally brought under control by the local police somewhere around 3 a.m. took place at a privately managed dormitory of the Foxconn Technology Group.

The Foxconn point of view:

According to the statements from Foxconn, the reasons behind the dispute are not clearly known as of now and the matter is under the investigation of the local authorities. The Foxconn Taiyuan plant is working very closely with the officials in this matter that seems not to have aroused out of any work related issues. According to the reports of the Xinhua News Agency in China, that cites the Taiyuan City's public security bureau, somewhere around 10 people were hurt in the incident. They also stated that nearly 5000 police personals were sent at the location and the matter was brought under control sometime around 9 a.m. According to Louis Woo, the spokesman for the Foxconn Technology Group, a decision of Foxconn's China plant shut down has been made until further investigations. According to a staff member, the plant could remain closed for two to three days because of police investigations. The staff member who wanted to remain unidentified told Reuters over telephone that the site is now flocking with police personals. No contact to the police authorities to comment on the matter could be made.

The market status of Foxconn:

Foxconn that is the trading name of the Hon Hai Precision Industry Co. has had several incidents of disputes in some of its emerging plants in China where they employ as many as one million workers. By late in the morning the shares of Foxconn came down by 1.03% that can be accounted for the Foxconn's China plant shut down. The downward slope of the market took place at a time when the broader market saw a rise 0.1%. Incidentally another such incident took place at the Chengdu plant of the company in the month of June. Foxconn has for quite some time faced allegations of mistreatment of their workers and poor working conditions, a field where they have seriously taken their attention to only recently.

Author
Aubrey Chang, Associate Editor Industry Leaders Magazine (www.industryleadersmagazine.com)

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