Foxconn Technology Group has launched another lawsuit, this time
against two former employees who left the group to join Byd Battery
Co Ltd, demanding compensation of 70 million yuan (US$8.75
million).
The action was taken against the two former staff members and
Byd Battery. The Shenzhen Intermediate People's Court has accepted
the case and will open a session on September 25.
The two defendants are Liu Xiangjun and Si Shaoqing. Liu worked
for the Shenzhen Futaihong Precision Industry Co Ltd and Si worked
for Hongfujin Precision Industry Co Ltd both are part of the
Foxconn group. The two resigned from Foxconn and now work for Byd
Battery.
Foxconn demanded Byd Battery cease its alleged unfair
competition that the group claims infringes its commercial
technology secrets.
Zhang, a Byd Battery manager, said the case would be determined
in court but expressed his surprise at the amount asked for by
Foxconn.
Zhang said Byd Battery had not received a citation from the
court but that the company would follow legal protocol to handle
the case.
He said the leaders of the two companies had made contacts but
the details were "unknown."
Foxconn said the case was unrelated to another action in which
it has accused two reporters of defamation for a report published
on June 15 about working conditions at one of Hongfujin's factories
in Shenzhen.
In the report, the company was questioned as to why it has not
set up a trade union to safeguard the interests of its
employees.
James Lee, senior vice-president and chief operating officer of
the Foxconn Technology Group, told China Daily that preparations
for setting up a trade union at the company are under way.
"For such a large company like this, we have long been
considering setting up a trade union," he said. "But we need a good
proposal to ensure the efficiency of the trade union."
He revealed that the trade union would be set up within the
year. In mid-December 2001, the group established a committee of
the Communist Party of China.
The group also has a staff relations department responsible for
the training of its staff, mediation and complaint-handling, he
said.
(China Daily September 2, 2006)
