Foxconn employees who recently threatened a mass suicide have now reached an agreement with their superiors.
Xbox factory workers planned on executing a mass suicide at a Foxconn factory in Wuhan, China. The plan was put into place if their demands for higher pay were not met. Previous requests for pay raises were denied by the company.
On January 2, the company’s employees made the official announcement regarding their suicide threat.
Microsoft took the threats of Foxconn’s workers very seriously. The company immediately launched an internal investigation into the matter in order to prevent the mass suicide. Although an investigation is still ongoing, Microsoft and Foxconn told CNET today that a deal between the workers had been reached.
"It is our understanding that the worker protest was related to staffing assignments and transfer policies, not working conditions," a Microsoft representative told CNET yesterday.
"Due to regular production adjustments, Foxconn offered the workers the option of being transferred to alternative production lines or resigning and receiving all salary and bonuses due, according to length of service. After the protest, the majority of workers chose to return to work. A smaller portion of those employees elected to resign."
Foxconn also stated that it had reached a deal with about 150 employees. Most of them are reportedly returning to work. The New York Times said today Foxconn also stated that 45 workers that were involved in the dispute have resigned from the company.
The tech company is known for producing tech products for Apple, Microsoft, and others. For the past two years, suicide attempts have become a trend at the company's factories.
At least 16 Foxconn employees have jumped to their deaths in the company's Shenzhen, China factory. Three other workers also attempted to kill themselves at the factory.
These deaths have prompted the company install "suicide nets" around the factory to discourage employees from jumping from buildings.
Foxconn has also offered some workers a 20-percent wage increase to improve morale. The company is aiming to appease its disgruntled staff and put a stop to the deaths of its workers.
This labor issue with Foxconn and its employees now could impact the production and manufacturing efforts of the iPhone 5 and iPad 3. The company has reportedly started to assemble Apple's next devices. Hopefully, the workers will be treated fairly and paid justly for their continued efforts.