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  • Brazilian Officials Dissatisfied with Foxconn's Slow Manufacturing Progress


    Foxconn, which is one of Apple’s closest manufacturing partners, appears to be under fire in Brazil as officials in the nation aren’t satisfied with the company’s progress on what was initially sold as a major investment to modernize the Brazilian manufacturing industry. Although some speculated that Foxconn’s previous expansion to Brazil would help to bring as many as 100,000 jobs and $12 billion in capital investment, the company actually has less than 10,000 employees across its 5 factories.

    Taiwanese contract manufacturer Foxconn, one of Apple's closest partners, is under fire in Brazil as officials in the South American nation are displeased with the company's slow rate of progress on what was initially sold as a major investment to modernize the Brazilian manufacturing industry.

    Although the company publicly committed to invest at least $325 million in a new industrial park in Itu, Brazil, the site doesn’t appear to be operational. Foxconn did say it was going to be online by the end of the year but the lack of progress has been causing a stir among the city officials. Itu city councilor, Givanildo Soares da Silva said the following regarding the matter:

    People are really frustrated. We were expecting all these jobs by now and it's still just empty promises.
    Out of all of the jobs that Foxconn brought to the area, many pay little more than minimum wage. Conditions are reportedly worse than that of the company’s Chinese counterparts with acceptance testers for example bringing home roughly $80 per week and lacking access to the same training and advancement opportunities. Up until now, workers have held at least three strikes at the current iPhone factory and a union representative said they were planning on holding another.

    Of the jobs that Foxconn has brought, many pay little more than minimum wage. Acceptance testers at the Brazilian iPhone plant, for example, bring home just $80 per week and lack access to the same training and advancement opportunities that their counterparts in Foxconn's Chinese facilities receive.

    What makes the whole situation worse is that manufacturing Apple devices in Brazil hasn’t lowered local prices as originally expected either. Instead, the prices have inflated by as much as 30% on imported goods thanks to various taxes and tariffs. As of right now, iPhones and iPads continue to sell for twice as much in Brazil as they do in the US – something which many local residents continue to find unsurprising.

    We’ll have to see how Foxconn resolves the issue in Brazil in the near future. If the company doesn’t do anything to fix what’s been going on, it could face additional scrutiny which could hurt its reputation.

    Source: Reuters via AppleInsider
    This article was originally published in forum thread: Brazilian Officials Dissatisfied with Foxconn's Slow Manufacturing Progress started by Akshay Masand View original post