http://cashpaydayloans.org.uk/news/finance/xbox-makers-in-china-in-mass-suicide-scare - Last week in the central city of Wuhan in China dozens of workers responsible for the assembly of Xbox games consoles scaled the factory...

1. Xbox makers in China in Mass
Suicide Scare
http://cashpaydayloans.org.uk/news/
finance/xbox-makers-in-china-in-
mass-suicide-scare

2. Last week in the central city of Wuhan in China
dozens of workers responsible for the assembly of
Xbox games consoles scaled the factory walls and
threatened to jump from the roof. The trigger for
this extreme action was the news that Foxconn
Technology Group are to close the Microsoft Xbox
360 production line. There was anger too over the
alleged initial offer of severance pay being
revoked; this has yet to be substantiated.
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3. It is clear that labour relations are coming under
increasing strain in China and threats of suicide are
not uncommon as the workers feel they have no
other alternative to making their point heard. The
bigger question is why labour relations are such a
big problem, why now?
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4. Chinas economy, much like the rest of the world is
slowing down. Inflation is biting and wages are not
always keeping pace. Another cause of inflation
has been the increasing size of the loans industry
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5. Loan sharks have found it easy to borrow money
and even easier to loan out to individuals and
businesses. The impact of this is far beyond that of
inflation. Company owners are fleeing their
companies and in some cases, the country itself
because they took out loans from loan sharks that
will never be repaid.
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6. The obvious question is why don’t businesses go to
banks or other such lenders as we do in the UK?
The answer is painfully simple. China’s government
run banks usually only lend to big state-owned
corporations. So entrepreneurs are left with no
other options if they wish to finance their projects.
While times were good this underground based
financing system worked but as the economy has
slowed it has become harder and harder to meet
the debt repayments.
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7. The total size of the illegal lending market is not
known exactly but it estimated to be around $630
billion a year (source: New York Times). In just a
few short months at the end of 2011 over 90
business executives have gone missing from just
one coastal city, purely because of their inability to
make the repayments to the loan sharks, and this
is a trend that is surely set to continue.
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8. Foxconn Technology Group and who they work for.
As well as the assembly of Xbox games consoles for
Microsoft FTG also have factories for other
companies such as Apple. Indeed many of the
Apple consumables we all know and love like the
iPhone and iPad are assembled at FTG factories. In
those factories too there have been issues with
their workers and suicide.
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