News

Report by Sydney Morning Herald reporter Paul Bibby

"HP reins in Depression-era PC factory

Paul Bibby February 09, 2011 - www.smh.com.au

A large western Sydney computer packing company, which forced workers to wait until the night before to find out whether they had work the next day, and reportedly subjected them to poor working conditions, has agreed to offer staff permanent contracts.

Late last year this website revealed Depression-era employment conditions in which staff from the Foxteq factory in Rydalmere would be forced to wait anxiously for text messages telling them whether or not there was work for them the next day.

The entire workforce is made up of casual employees engaged by an outside labour hire company to assemble and pack hundreds of Hewlett-Packard computers, which then go to dozens of organisations including the Department of Defence, NSW Fire Brigades and banks.

Workers said sometimes the text messages didn't arrive until 8pm, less than 10 hours before the next day's shift starts.

When the workers arrived at the factory they were often told they would only be working for four hours – barely enough to cover the cost of their travel.

But Foxteq and labour hire company Resco – which has just taken over the previous holder of the Foxteq contract, Weststaff – have reached an agreement with the Australian Manufacturing Workers Union.

Foxteq workers will now vote on an agreement that offers them permanent full-time or part time status, improved working conditions, and the ability to elect union delegates.

"This agreement offers a transition from medieval practices to a modern manufacturing workplace," the NSW secretary of the Australian Manufacturing Workers Union, Tim Ayers, said.

"We've been working hard behind the scenes in an effort to reach an agreement. We're hopeful that a large number of these workers will take up the offer to go full-time or permanent part-time."

This website understands that Foxteq's decision was driven partly by pressure from Hewlett-Packard, the company whose computers they are responsible for packing.

Senior management were understood to be very concerned about the negative publicity brought by revelations about HP's connection to the company.

"Following the completion of HP's onsite audit of Foxteq's Rydalmere site, a number of areas for improvement were identified and a corrective action plan was put in place to address issues related to management systems and labour rights," an HP spokeswoman said.

"All eligible Foxteq workers have been offered permanent temporary positions and HP has taken steps with Foxteq to provide greater production visibility and to stabilise work schedules."

Particularly damaging to HP were revelations that Foxteq is the sister company of the infamous iPhone manufacturer Foxconn.

Foxconn made headlines this year when 13 workers in China attempted suicide at its plant in Shenzhen.

The multibillion-dollar manufacturing empire is notorious for demanding long hours for low pay and its workers are driven by the insatiable demands of consumers hungry for technology."