Foxconn to Start Replacing Workers with Robotic Technology
Electronic manufacturing giant Foxconn Technology is now using more robotic technology for its automated systems which took the place of around 70 percent of its human workers on their local plant entry level work on assembly lines. An engineer at the Foxconn plant in Guanlan in Longhua New Area said that the company ended their large scale recruitment by the end of last year. He also said that incomes of workers at the plant declined in recent months as the company is cutting down on overtime.
Foxconn has allowed overtime for work that was paid by Apple Inc. and the overtime pay accounts for the large percentage of a worker’s income at the plant. And these workers were allowed to work overtime for at least 46 hours per month and the number of hours has currently dropped to 24 hours a month. As of the moment the company is not in a hurry to hire workers for positions that were vacated the company is planning to gradually replace humans with robotic technology as 70 percent of the preliminary assembly lines at the plant are now being handled by automated machines.
Robotic technology has surpassed the ability of human workers, a robot can now replace three humans in doing simple repetitive work that required great labor. Before these labor intensive work at least four employees but now only one is needed to provide assistance. Furthermore robots can provide greater quality in worker and produces less waste.
Also by using robots is cheaper than hiring workers, since robotic technology can last up to four years and costs 100,000 yuan to purchase and low in maintenance compared to salaries of three workers paid over a single year exceeds 150,000 yuan. Also the manufacturing industry in China will be using robotic technology and will see a decrease in hiring human workers.
Experts say that the increase in the cost of labor is one of the reasons that factories are transitioning to robotic technology.