Will Foxconn’s arrival change shape of Telangana

Locals will get employment
But nothing close to IT jobs
Salaries are not huge
Don’t expect miracles to happen overnight
Don’t rush to buy properties
Company known for exploiting labour force
Chennai workers faced hardships in 2021
Government should discuss every aspect with Foxconn

(King Johnson Koyyada)

There is a sudden discussion that Foxconn company is being established in Kongarakalan and would provide one lakh jobs, which would propel the demand for the realty sector soon. But what part of this discussion is true? What are the characteristics of this organisation? When did it start? Is it venturing into India for the first time with Telangana or did it already set up industries in other States? If so, what are the actual conditions there? Will the arrival of Foxconn bring real boost for realty sector?

Founded in 1974 in New Taipei city of Taiwan, Foxconn company also known as Hon Hail Precision Industry ,currently employs more than 13 lakh people. The company is one of the largest technology production companies in the world, supplying electronic devices pertaining companies based in countries like the US, Canada, China and Japan. This company manufactures phones of reputed brands like iPhone, iPod, Sony, Google Pixel, Xiaomi, and Blackberry among others. Foxconn has 137 campuses and offices in 24 countries and regions around the world. The majority of Foxconn’s factories are located in East Asia, with others in Brazil, Europe and Mexico. Interestingly, this company has been operating in our country since 2015.

Foxconn’s announcement to invest in India, is nothing new. In 2015 itself, the company announced plans to set up 12 factories in India, promising over 10 lakh jobs. It has also held discussions with the Adani Group to expand its operations in India. In the same year, it invested in Snapdeal. In September 2016, it started manufacturing products with Gionee. In April 2019, Foxconn reported that it was ready to mass produce the new iPhones in India. The company chairman Terry Gau said then that the manufacturing will be done in South Chennai. In September 2022, Foxconn signed a deal for a chip-making facility in Gujarat with an investment of $21 billion by the Vedanta Group

Accusations against Foxconn!

Foxconn has turned its industrial units into labour camps with widespread labour abuse and illegal overtime, according to a joint report submitted by 20 universities in mainland China. There were reports that the security guards were caught while roughening up the factory workers at the factory. There are also allegations of irrational working hours on this company.

In 2009-10, the suicides of Foxconn industrial workers attracted media attention. In one of the first cases which was reported widely in the media, Sun Danyong, a 25-year-old man, committed suicide after being beaten up by security guards. After 14 workers committed suicide at Foxconn in 2010, it resorted to firefighting measures. In January 2012, workers protested over conditions in Wuhan, with 150 workers threatening mass suicide if the company did not improve conditions at the factory. In 2012 and 2013, three young Foxconn employees jumped to death from the company buildings

What happened in Chennai?

Before Telangana, Foxconn had set up a factory at Sri Perambudur in Chennai. On December 15, 2021, 256 workers contracted diarrhea after eating food provided by the company. Of this, 159 workers were hospitalised. But the company did not divulge any information in this regard. Reports about death of two workers was also circulated on the social media. Due to this, on December 17, the workers held a sit-in protest in the dormitories where they reside. At 10 pm on the same day, hundreds of female workers staged a protest on the Chennai-Bangalore National Highway. As a result, the police arrested 67 women protesters. Later, the Tamil Nadu government reviewed the condition of the workers. On December 22, the Food Safety department seized the dormitory’s kitchen citing presence of rats and poor drainage facility. It found that the rooms provided to the workers were overcrowded, they were made to sleep on the floor and some did not even have toilets with running water. However, after Apple Inc assured the Tamil Nadu government in January 2022 that necessary corrective measures had been taken, Foxconn reopened its factory. Now that the company will enter Telangana, every aspect should be thoroughly discussed and precautions should be taken to avoid any trouble to the employees in future. Working hours and habitable areas of the workers should be developed after careful discussion with the representatives of the company.

No overnight miracles

Don’t blindly believe the propaganda that upon arrival of Foxconn company, miracles will happen overnight at Kongarakalan and with the company providing employment to nearly one lakh people, it will result in demand for realty sector. Remember that Foxconn is an electronic devices manufacturing company which is mainly focused on manufacturing phones for several reputed brands. The establishment of this company will not assure employment like IT companies, but only some locals who don’t have employment will get benefited. Don’t believe the propaganda that people will buy plots in the surrounding areas due to the salaries of the workers working in it. The fact is that the salaries will not be as huge as IT jobs, but unemployed will get work and salaries are paid promptly. Only the government can clarify whether the salaries of the workers are sufficient enough to buy plots or not in the area.

In all, don’t believe the rumours that Foxconn’s arrival will shake up the realty sector. There are wicked people who sell lands and plots by increasing their prices overnight which are otherwise supposed to increase over 10 years. Don’t believe in them and waste your hard-earned money. It is better to take an investment decision after carefully considering the actual situation