Apple iPhone supply hit by China factory dispute
Thousands walk off the job after dispute erupts at a Zhengzhou plant over quality demands
Foxconn Technology, the assembler of Apple iPhones, had to stop mainland production for the second time in as many weeks after factory-line workers at one of its plants protested against increased pressure.
Foxconn, which employs more than one million workers, has suffered in the past three years from suicides, riots and strikes. To improve working conditions, chairman Terry Gou raised pay and allowed inspections by outside observers.
Employees, who work up to 12 hours a day, say the difficulties of meeting Apple's demands for quality and abuse from guards set off the latest incidents.
One of the company's factories in Zhengzhou lost two shifts last Friday after workers became frustrated trying to prevent scratching on the casings of the iPhone 5, according to industry sources.
A dispute occurred between the production and quality teams at the factory, the company said. Between 3,000 and 4,000 people who walked off the job at the plant, have since returned to work, according to advocacy group China Labour Watch.
"Labour disputes are a fundamental issue unique to Foxconn," Brian Park, a technology analyst at Tong Yang Securities, said. "Foxconn is infamous for high suicide rates, and that means the intensity of labour is that much higher."