Product details

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Abstract

Taiwanese tech giant Foxconn announced a plan to invest USD500 million and quadruple its workforce in India by 2024. The company faced labour unrest at its factory in Tamil Nadu (TN) after 400 workers staying in its hostel fell ill. Investigations revealed issues like low wages, unhygienic living conditions, stressful work conditions, and labour law violations, leading to such a situation. Facing criticism from international organisations, Foxconn reopened the factory in January 2022, after renovating the hostel with improved facilities. The Indian Government looked to position the country as an attractive destination for electronic manufacturers. While the state Government in TN allotted 20 acres of land to Foxconn to boost investment, it was compelled to walk a tightrope by balancing between industrial growth and workers' welfare. Considering the criticality of labour rights to India's competitiveness as a manufacturing economy, was it possible for the Government to drive industrial growth without compromising on workers' interests?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
World/global
Country:
India

Featured company

Foxconn
Type:
Public company
Industry:
Electronics

About

Abstract

Taiwanese tech giant Foxconn announced a plan to invest USD500 million and quadruple its workforce in India by 2024. The company faced labour unrest at its factory in Tamil Nadu (TN) after 400 workers staying in its hostel fell ill. Investigations revealed issues like low wages, unhygienic living conditions, stressful work conditions, and labour law violations, leading to such a situation. Facing criticism from international organisations, Foxconn reopened the factory in January 2022, after renovating the hostel with improved facilities. The Indian Government looked to position the country as an attractive destination for electronic manufacturers. While the state Government in TN allotted 20 acres of land to Foxconn to boost investment, it was compelled to walk a tightrope by balancing between industrial growth and workers' welfare. Considering the criticality of labour rights to India's competitiveness as a manufacturing economy, was it possible for the Government to drive industrial growth without compromising on workers' interests?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
World/global
Country:
India

Featured company

Foxconn
Type:
Public company
Industry:
Electronics

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