 "Foxconn finishes building $230 million-worth dormitories for workers at Tamil Nadu iPhone plant")
Foxconn has wrapped up its $230 million investment to construct dormitories for its workers at its Sriperumbudur plant in Tamil Nadu. The sprawling facility, built on the premises of the Taiwanese manufacturer’s factory, aims to accommodate its predominantly female workforce and eliminate the need for daily commutes to off-site hostels.
An audit is currently underway to ensure the dormitories are fully operational before workers move in. This project marks Foxconn’s first significant investment in worker housing in India. Spread over 20 acres, the facility includes six residential blocks, each ten stories tall, with a capacity of 18,000 beds, as per a report by The Economic Times.
Two additional blocks are dedicated to utilities, and the development features recreational spaces for cricket, badminton, basketball, and volleyball. Workers will also have access to subsidised meals at an on-site canteen and a grocery store for everyday needs.
Improved living conditions for workers
The dormitories represent a significant step towards improving living standards for Foxconn’s workforce in India. The company, which assembles a large share of iPhones exported from India, employs over 41,000 people in and around Chennai, 35,000 of whom are women. Having dormitories within walking distance of the factory aims to enhance convenience and safety for workers.
This development follows a food poisoning incident in 2021 that led to worker protests and the temporary closure of Foxconn’s plant. The incident prompted Apple to place the facility on probation, mandating significant upgrades to the hostels that previously housed 12,000 workers. Foxconn’s new dormitories, along with government-led projects like the industrial housing facility inaugurated earlier this year, signal a renewed commitment to better worker welfare.
A model for sustainable manufacturing
Foxconn’s investment in dormitory-style housing reflects its successful township model implemented in countries like China, Taiwan, and Vietnam. At its Zhengzhou facility in China, for instance, the company operates a self-contained ecosystem with integrated worker housing, healthcare, entertainment, and even emergency services. This model not only enhances the quality of life for workers but also boosts productivity and operational efficiency.
Experts believe that replicating such a model in India will be crucial for Foxconn’s long-term growth. Developing robust social infrastructure, including housing, healthcare, and transportation, is seen as essential to attracting and retaining a skilled workforce.
Addressing housing challenges in manufacturing
The initiative aligns with recommendations from a recent Niti Aayog report titled S.A.F.E. Accommodation – Worker Housing for Manufacturing Growth. The report highlighted inadequate housing as a major hurdle for India’s manufacturing sector, leading to high attrition rates, reduced productivity, and limited workforce mobility, especially for women.
As India strives to become a $5 trillion economy, addressing worker accommodation is becoming a critical priority. Foxconn’s efforts, coupled with government initiatives, are setting a precedent for improving living standards in industrial hubs, paving the way for a more sustainable and efficient manufacturing ecosystem.
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