Malcolm Owen
Apple assembly partner Foxconn is having to deal with competition for its employees in Vietnam, with Hon Hai chairman Young Liu accusing rivals of poaching its workers.
Foxconn and other companies are in the process of expanding or launching new operations in Vietnam, as a part of Apple's efforts to bring more of its manufacturing outside of China. However, Foxconn is seemingly becoming a victim of the uptick in activity.
Speaking to the media on Saturday, Hon Hai chairman Young Liu told of the struggle in Vietnam as rival companies are setting up their operations in Vietnam, reports Bloomberg. Its supply chain competitors are allegedly opening up facilities near to Foxconn campuses in the country, so they can poach workers and benefit from the existing knowledge and skills pool.
Liu declined to name specific companies, but insisted "The move shouldn't be condoned."
Foxconn currently employs around 60,000 people in Vietnam, the chairman said, and the company has plans to "significantly" increase the number over the next year or two.
Apple has talked to its suppliers to try and increase the amount of production outside of China, a move that would impact manufacturing in other countries like Vietnam that are already included within the supply chain.
In June, it was reported that Apple had shifted production of iPads to Vietnam, in a bid to avoid further supply chain disruption caused by China's zero-tolerance coronavirus measures.
Charles Martin
William Gallagher
Christine McKee
Wesley Hilliard
5 Comments
People change jobs for 4 basic reasons: more money for same role; more opportunity for advancement; better conditions and personal conflict/s with existing staff. Foxconn can address the first three items to minimise the issue of staff going elsewhere.
Free market says this is OK. Provide adequate incentive for people to stay with you vs competitors.
The disconnect here (on the part of the Foxconn chairman guy, not commenters here) is astounding. He thinks the workers are his private slave force. That they have no rights but to be exploited by him.
Yet he probably thinks it's OK to undercut his competition in order to grab new business / market share.
Typical elitist thinking.
As has been mentioned you get loyalty by giving loyalty (treating people right and with respect and proper compensation for their labor). If the workers feel they have a stake in the success of the company and the company is looking out for them they will be loyal.