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Why did Apple supplier Foxconn shut down its Chennai plant?

Why did Apple supplier Foxconn shut down its Chennai plant?

A manufacturing plant near Chennai, Tamil Nadu run by Foxconn, one of the oldest and largest suppliers of Apple products was temporarily shut down in December 2021

The factory manufactures iPhone 12 models, Amazon Fire TV sticks, some Xiaomi devices, and has also started trial production of Apple's newest offering- iPhone 13.

This decision came after workers staged a protest following a mass food poisoning incident at the factory that led to 150 employees being admitted to the hospital.

This begs the question, how do big corporations and factories help their workers in the event of accidents and ailments sustained at the workplace?

Companies cover such incidents with the help of Workmen’s Compensation Insurance, also known as Employee Compensation Insurance.

In lieu of increasingly hazardous working conditions, the government passed the Workmen’s Compensation Act, 1923, which made Workmen’s Compensation Insurance compulsory for certain businesses. This Act holds employers and organizations responsible for ensuring a safe and hazard free work environment for their employees.

The employer is also responsible to pay compensation to the workers in the event of serious injury, disablement, or death caused by accidents that occur during the course of their employment.

Through a Workmen’s Compensation Policy, the business can easily pay due compensation to its employees or their families for workplace accidents. Other benefits like coverage for occupational diseases and medical expenses can also be provided through this policy.

The Tamil Nadu Government has asked Foxconn to take measures in order to improve the working and living conditions of its employees. The factory will soon resume production.

More and more tech companies are setting up shop in India for their assembly and manufacturing. And Workmen’s Compensation Insurance is a good way for them to insure their employees’ interests.

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Further Reading

Learn more: Workmen's Compensation Insurance