Foxconn Cuts 60,000 Jobs, Replaces With Robots (thestack.com)

An anonymous reader writes: In a bid to accelerate growth and reduce labor costs, Apple supplier Foxconn cut 60,000 jobs at a single factory, work that is now being completed by robots. As many as 600 companies in the Chinese manufacturing hub of Kunshan may have similar plans to automate their workforce, according to a government survey. Foxconn spokesperson Xu Yulian said, "The Foxconn factory has reduced its employee strength from 110,000 to 50,000, thanks to the introduction of robots. It has tasted success in reduction of labor costs." He added, "More companies are likely to follow suit."

These changes are spurred in part by a desire to reduce labor costs, but have also been made in response to an explosion at a Kunshan factory in 2014 that killed 146 people. The explosion was attributed to unsafe working conditions in the Taiwanese-owned metal polishing factory, which were recognized and documented. After the explosion, the local government pledged 2 billion yuan per year in subsidies to support companies that install industrial robots on their production lines.

Comments

Re:Interesting

[Tailhook]

The president of Foxconn was asked about this in 2010; why not manufacture in the US using automation? He said, "I worry America has too many lawyers. I don’t want to spend time having people sue me every day.” Labor costs aren't the only concern; the US is a regulatory and political mine field filled with lavishly funded pressure groups that impose huge costs on industrial investment.

Pointing this out invariably provokes the knee-jerk Sierra club trained response; "so you think the filthy pig-dog capitalists should be allow to pollute everything right?" This is done using some device manufactured in China because the writer couldn't afford to purchase a machine manufactured under the regulator regime he insists on for his own country. So we shit up Asia instead and feather our own regulatory nest.

Re:I've been predicted that

[Kjella]

The thing is, most of us here in Europe already have it of sorts. I just checked the standard for social aid here in Norway, essentially the lowest form of benefits if you don't qualify for anything else and have no means to sustain yourself. Last year it was 5700 NOK/month = $8200/year + cheapest form of housing with insurance and utilities. Norway is expensive so purchasing power parity adjusted that's more like $7400 and since we have 25% general VAT, 15% on food the government will make quite a bit back so maybe more like having $6000 in the US. But with rent, insurance and utilities taken care of you can stretch those $500/month quite a bit if you just look for second hand stores, flea markets, giveaways and such. That said, some counties have also introduced activity requirements so you will be wasting your days doing community service, not just sit around and play WoW. But nobody's going to end up in a tent camp, unless they have such drug problems we can't really house them anywhere.