Featured Research

from universities, journals, and other organizations

Global manufacturer shows the dark heart of nearshoring

Date:
June 25, 2014
Source:
University of Leicester
Summary:
Nearshoring - the hottest new trend in global manufacturing - is based on the use of low-paid labor which can be exploited because it lacks unions to fight for it, an exhaustive study into working practices suggests.

Nearshoring -- the hottest new trend in global manufacturing -- is based on the use of low-paid labour which can be exploited because it lacks unions to fight for it, an exhaustive study into working practices at Foxconn suggests.

Nearshoring occurs when multinationals transfer their production from low-wage economies, such as China, to countries conveniently situated much nearer to their lucrative customer bases in developed economies.

"There is a dark heart to nearshoring, the latest major development in international capitalism," says Dr Rutvica Andrijasevic, a lecturer in employment studies at the University of Leicester's School of Management. Together with Dr Devi Sacchetto from University of Padua, Italy, Dr Andrijasevic led the research into conditions at three "nearshored" factories in Turkey and the Czech Republic run by the Taiwanese electronics maker Foxconn, where the firm makes products primarily for Hawlett-Packard. "Companies such as Foxconn try to keep labour costs in nearshore locations down to the levels seen in mainland China, through minimum wage and flexible organization of production," she explains.

Dr Andrijasevic warns: "Much publicity has been given to poor working conditions in China, but the transfer of the 'sweatshop' model to nearshore locations in Europe is one of the terrible secrets of nearshoring."

The research, based on interviews with current and ex-Foxconn workers, trade union and government officials, and staff at non-governmental organisations, found that Foxconn pressured its workers to leave their trade unions in order to get the most out of workers at the least cost.

Gabriel, a sacked employee at one of the Czech factories, told the researchers that although he was fired, "those who agreed to leave the union carried on working."

In Turkey, Foxconn has forced workers to abandon trade unions. "The managers brought their notary to the factory and made them sign papers renouncing their membership," says Talat, a Foxconn worker. "Everybody signed because they'd have been sacked otherwise."

Low union power reduces the power of workers to fight for better working conditions in Foxconn's European factories. The work is "easy but very stressful," says Nissan, a worker in Turkey. She explains: "The managers only care about reaching targets. They treat us like robots and forget that we're human beings."

In order to examine Foxconn's working practices, Dr Andrijasevic and Dr Sacchetto are organising a conference entitled "Forms of Labour in Europe and China. The Case of Foxconn'. The conference will be held at the University of Padua in Italy on June 26-7 2014 and brings together international academics and practitioners to discuss global politics of labour.


Story Source:

The above story is based on materials provided by University of Leicester. Note: Materials may be edited for content and length.


Cite This Page:

University of Leicester. "Global manufacturer shows the dark heart of nearshoring." ScienceDaily. ScienceDaily, 25 June 2014. <www.sciencedaily.com/releases/2014/06/140625114717.htm>.
University of Leicester. (2014, June 25). Global manufacturer shows the dark heart of nearshoring. ScienceDaily. Retrieved July 22, 2014 from www.sciencedaily.com/releases/2014/06/140625114717.htm
University of Leicester. "Global manufacturer shows the dark heart of nearshoring." ScienceDaily. www.sciencedaily.com/releases/2014/06/140625114717.htm (accessed July 22, 2014).

Share This




More Science & Society News

Tuesday, July 22, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

What Self-Made Women Need to Know Financially Before Getting Hitched

What Self-Made Women Need to Know Financially Before Getting Hitched

TheStreet (July 21, 2014) Halle Berry was recently ordered to pay her ex-boyfriend Gabriel Aubry $16,000 a month in child support by a California judge for their daughter Nahla. As women make strides in the workforce, they are increasingly left holding the bag when relationships end regardless of marital status. 'What Monied Women Need to Know Before Getting Married or Cohabitating' discusses information such as debt incurred during the marriage is both spouse's responsibility at divorce, whether after ten years of marriage spouses are entitled to half of everything and why property acquired within the marriage is fair game without a pre-nup. Video provided by TheStreet
Powered by NewsLook.com
$23.6 Billion Awarded To Widow In Smoking Lawsuit

$23.6 Billion Awarded To Widow In Smoking Lawsuit

Newsy (July 20, 2014) Cynthia Robinson claims R.J. Reynolds Tobacco Company hid the health and addiction risks of its products, leading to the death of her husband in 1996. Video provided by Newsy
Powered by NewsLook.com
Clock Ticks Down on Internet Speed Debate

Clock Ticks Down on Internet Speed Debate

Reuters - US Online Video (July 18, 2014) The FCC received more than 800,000 comments on whether and how internet speeds should be regulated, even crashing its system. Lily Jamali reports. Video provided by Reuters
Powered by NewsLook.com
Raw: Wildfire Tears Through Washington

Raw: Wildfire Tears Through Washington

AP (July 18, 2014) A large wildfire continued to gain steam through north-central Washington Friday. The blaze is already responsible for the destruction of at least 100 homes. (July 18) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins