Foxconn no longer compensating families of suicide victims

Foxconn CEO Terry Gou announced his firm will no longer provide suicide compensation to families of dead employees, claiming that the money is a major motivation for the suicides. Telegraph writer Malcolm Moore came to the same conclusion two weeks ago, as he pointed out that families of suicide victims receive 110,000 yuan in compensation, about the equivalent of ten years of gross salary for an average Foxconn worker.

CEO Terry Gou reasoned by exhibiting evidence that showed the money -- an amount almost equivalent to ten years' worth of salary -- was a major motivation for the suicides. One such exhibit was a man's suicide letter that contained the following message for his parents:

"...now I'm going to jump off Foxconn, really leaving now, but you don't have to be sad, because Foxconn will pay a bit of money, this is all your son can repay you now."

Gou also blamed a possible "Werther Effect" created by the news coverage, which might have led to six of the twelve suicides all taking place in May. Consequently, the company will be handing over its welfare management work to the local Chinese government, as it's unable to deal with too many social responsibilities.

More info at Engadget, they also have some details on Foxconn's relocation plans.