Pa ge |1 Cultural Diversity in the Workplace in Different Countries

Cultural Diversity in the Workplace in Different Countries Wanlin Tsai Kutztown University of Pennsylvania

The reason of the differences in management is due to cultural differences. regulations are commonly ignored at the local level. is the largest electronics factory in the world. Take electronic manufacturing industry as example. In the electronics industry. . Foxconn Technology Group. the All-China Federation of Trade Unions (ACFTU). this project brings up the case of Foxconn to discuss the labor and human rights in China. this multinational company has different policies in human resources management in different countries. and discriminat ion against rural migrant workers. based on low wages. or even non-governmental organizations (NGOs) that increasingly monitor and protest against abusive conditions in the plants. lo ng working hours. City leaders have been pressured by national officials. This case reveals the poor labor practices of Foxconn in China. Unions and governments play critical roles in influencing on the working conditions of local companies. of which Hon Hai is the flagship.Pa ge |2 Cultural Diversity in the Workplace in Different Countries Abstract This project probes into cultural differences in the workplace that affect human resources management of multinational companies. However. The crisis at Foxconn reveals several problems of working condit io ns in China¶s current model of economic development.

... 4 Foxconn ............................ 3 The China Labor Union All-China Federation of Trade Unions (ACFTU) CASE OF MULTINATIONAL ELECTRONICS MANUFACTURING COMPANY .................................. 1 Electronics Industry Code of Conduct (EICC) ............................................................................................................................................. 5 Company Introduction ..........................Pa ge |3 Cultural Diversity in the Workplace in Different Countries Table of Contents INSTITUTIONS OF LABOR AND HUMAN RIGHTS ................................................................ 6 Burgeoning Issues in China References ................................................................................................................... 2 International Labor Organization (ILO) ...........................................

Electronics Industry Code of Conduct (EICC): The Electronic Industry Code of Conduct (EICC) is a document put out by the Electronic Industry Citizenship Coalition. whose goal is to provide support to labor movements in Mainland China. From its office overseas. 1996) 3. Its members include countries from China.Pa ge |4 Cultural Diversity in the Workplace in Different Countries Institutions of Labor and Human Rights The following are international institutions and Labor Unions that regulate labor and human rights. (ILO. 2009) 2. 1. Its members throughout the world are known as the International Labor Offices. the United States. and to report human rights . to notify press of recent developments and activities. thereafter may join. Korea.N. EICC tends to improve working conditions and social responsibility throughout the electronics supply chain around the world. (EICC. Through extensive use of various media. Russia. All of the members must follow the regulations. The Code may be voluntarily adopted by any business in the electronics sector and subsequently applied by that business to its supply chain and subcontractors. the CLUB program serves primarily as a center for the collection and dissemination of information which relates to the state of Chinese labor. CLUB provides a platform that mainland labor organizers can use to exchange information. Japan. Members include states that any original member of the United Nations and any state admitted to the U. International Labor Organization (ILO): The International Labor Organization is an agency of the United States which deals with labor issues. and Germany. The China Labor Union The China Labor Union Base (CLUB) program is under the direction of the Wei Jingsheng Foundation.

Wages and Benefits Suppliers must pay all workers at least the minimum wage required by applicable laws and regulations. 2005) 4. Its major functions are to safeguard the lawful rights and interests of workers and their democratic rights. Summary of the labor standards related to Foxconn¶s main issues: Juvenile Labor Suppliers may employ juveniles who are older than the applicable legal minimum age for employment but are younger than 18 years of age. and overtime shall be voluntary. Workers shall be allowed at least one day off every week. Suppliers should not use deductions from wages as a disciplinary measure. workers must be compensated for overtime hours at the premium rate required by applicable laws and regulations.Pa ge |5 Cultural Diversity in the Workplace in Different Countries violations. All-China Federation of Trade Unions (ACFTU) All-China Federation of Trade Unions is the sole national trade union federation of the People¶s Republic of China. In addition to their compensation for regular hours of work. a workweek shall be restricted to 60 hours. including overtime. Working Hours Except in Emergency or Unusual Situations. (CLUB. Under no circumstances will workweeks exceed the maximum permitted under applicable laws and regulations. .

(Foxconn Technology Co.. among products for other U.1 manufacturer of desktop PCs and PC servers for worldwide global lead firm customers. It also has R&D centers in the USA. companies. North America and Western Europe (see Exhibit 2).5 billion in 2005.tw) . makes iPods for Apple and motherboards for Dell. Wit h its ability of system integration with R&D design. Dell. the trade name of Taiwan¶s Hon Hai Precision Industry Co. but already has 240. Hon Hai has become Taiwan¶s largest manufacturing group and No. It has worldwide manufacturing facilities in Asia.000 employees with plans for up to as many as half million in the near future. 2007) Exhibit 1 (from foxconntech.com. Taiwan and Japan. Ltd.Foxconn Technology Group Foxconn Electronics. Nokia and Sony . It has only been in Shenzhen since 1993. It produces for the most famous brand names in the global IT industry including Apple. Foxconn continues to develop cooperation with international factories closely to be international Electronic Manufacturing Services ( EMS ) enterprise (see Exhibit 1).S. Hewlett-Packard.Pa ge |6 Cultural Diversity in the Workplace in Different Countries Company Introduction. Achieving operating revenue of US$12.

The lowest rank workers earn only around 1. If production requires. including overtime pay.Pa ge |7 Cultural Diversity in the Workplace in Different Countries Exhibit 2 (from foxconn. Employees are on the job twelve hours from eight o¶clock in the morning to eight o¶clock in the evening each working day. Moreover. employees would have to pay for their own food.com) Burgeoning Issues in China There's a strange phenomenon in China where the people who work the hardest but earn the least. but are only paid for ten hours.000 yuan ($120) per month. 2008) It is approximately fifty cents per hour. . (Weil. employees may work on Saturdays and even Sundays at double time without any rest. and not counting free food and housing. Two hours are deducted for meals.

so they can keep on working. pension. Local authorities are under great pressure to keep the money flowing and make owners happy. In cases of major illness. although most of the employees are pleased to do so because of the overtime pay they receive. fellow employees request and gather donations. they are key elements in maintaining annual economic growth. China's labor laws are routinely violated and workers are offered very little protection. workers will take actions only if things go too bad. (Weil. for fatal diseases such as cancer. Some larger enterprises in . However. As a result. There were almost 80 percent of companies violating labor laws. Employees can go to a factory clinic if they are sick.Pa ge |8 Cultural Diversity in the Workplace in Different Countries In fact. 2010) City leaders may have been pressured by national officials. 2008) In the specific case of Foxconn. or even non-governmental organizations that increasingly monitor and protest against abusive conditions in the factories. the revolting efforts are nearly worthless. 90 percent of the enterprises in the area where foreign owned. (Moxley. the recent spate of suicides marks a sharp rise from 2010. (Pilling. workers even asked their employers to disregard these legal obligations. In some cases. all those who employed at Foxconn have limited benefits. many factories in China demand employees work long hours. Therefore. 2010) Without enforcement by labor unions. regulations are commonly ignored at the local level. they can go to a hospital with company paying 80 percent of the cost. However. medical. the All-China Federation of Trade Unions (ACFTU). As for benefits. Workers who try actually to claim their right to insurance. Many companies refused to sign contracts with workers and were paying a salary below the minimum wage. But the suicide rates are significantly lower than outside the factory in China. and unemployment payments are often fired by employers. Governmental authorities connive with the enterprises in this process.

labor actions are largely spontaneous. . with workers lacking union protection. there is nothing that workers can do. As a result. such as Foxconn. if an objection or complaint is denied.Pa ge |9 Cultural Diversity in the Workplace in Different Countries Shenzhen. have complaint procedures. However.

(2005).eicc. Retrieved from http://www. Retrieved from http://www.P a g e | 10 Cultural Diversity in the Workplace in Different Countries References China: Spate of Factory Suicides Exposes Sad Plight of Workers.chinalaborunion.org/en/home. Retrieved from http://www. (2010). Monthly Review. 32-49. (2008). Financial Times.foxconntech. (2004).org/global/about-the-ilo/lang--en/index. City of Youth: Shenzhen.php The Dark Side of China¶s Enduring Dream. China. Foxconn Technology Co. 2008(18). 2010(1). Retrieved from ProQuest Research Library. (2007).htm The China Labor Union.com.info/Home. Global Information Network.html Foxconn Crisis Proves Need for Global PR.html International Labor Organization. Retrieved from ProQuest Research Library. Retrieved from ProQuest Research Library.. (1969). Retrieved from ProQuest Research Library. . 2010(1). (2010). 2010(1).ilo. Ltd. Advertising Age.tw/en-global2-1. (2010). Retrieved from http://www. Electronic Industry Code of Conduct.

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