Foxconn's top boss faces tough questions on discriminatory hiring practices during trip to Chennai

Foxconn, a key player in Apple’s iPhone manufacturing in India, has come under scrutiny following allegations of discriminatory hiring practices at its Chennai plant. These allegations centre on claims that married women are being systematically excluded from job opportunities due to perceived family responsibilities.

The controversy arose after a Reuters investigation reported that the majority of the workforce at the Chennai facility consists of women, but the number of married women employed is disproportionately low.

According to Reuters, out of the 41,281 workers at the plant, 33,360 are women, yet only 2,750 of these women are married. This represents just 8.2 per cent of the female workforce, raising concerns about potential discrimination against married women in Foxconn’s hiring practices.

During a recent visit to the Chennai factory, Foxconn Chairman Young Liu addressed the issue but did not directly refute the specific allegations. Liu emphasised that Foxconn does not discriminate based on gender, highlighting that women make up a significant portion of the workforce.

However, his comments did not specifically tackle the accusations of excluding married women from employment. Instead, Liu underscored the contributions of married women to the company’s efforts, suggesting that they play a valuable role within the workforce.

The allegations have prompted a response from the Indian government. Labour officials in Tamil Nadu, the state where the Chennai plant is located, have been ordered to investigate the claims of discrimination. This move reflects the broader concerns about the treatment of women in the workplace, particularly in industries that are critical to global supply chains.

Foxconn, in its response, acknowledged that there had been issues with discriminatory hiring practices in the past, specifically in 2022. The company claims to have taken steps since then to address these issues and improve its employment policies. Despite these assurances, Foxconn “vigorously denies” the recent allegations made by Reuters, maintaining that the company is committed to fair hiring practices.

The controversy comes at a time when India is playing an increasingly crucial role in Apple’s manufacturing strategy. As Apple looks to diversify its production away from China, India has emerged as a key location for the production of iPhones and other Apple devices. This makes the allegations against Foxconn particularly significant, as they could impact perceptions of Apple’s supply chain practices in one of its most important manufacturing hubs.

As of now, Apple has not issued a public statement regarding the situation. However, the outcome of the investigation by Indian labour officials could have significant implications for both Foxconn and Apple, particularly in how they are perceived in terms of ethical employment practices.

The situation also underscores the broader challenges faced by multinational companies operating in diverse markets, where local labour practices and global standards can sometimes clash.