The Chinese-based technology manufacturer Foxconn has announced that it will be outsourcing the management for its workers' dormitories to two local Chinese property companies.
Foxconn Group, a subsidiary of the Taiwan-based Hon Hai Group, makes products for many major technology firms, including Apple, HP, Dell and Sony.
In a statement, Terry Gou, chairman of both Hon Hai Group and Foxconn Group, said (opens in new tab): "Foxconn has prepared to return to the local governments of mainland China the right to manage the employee dormitories and take care of Chinese employees."
Human rights groups around the world have called for major changes in the living conditions of Foxconn employees, following suicide attempts by 13 employees.
Foxconn has increased pay by up to 70 per cent for its factory workers in an attempt to reduce their dependence on overtime pay to support their families. The company hopes that that by outsourcing workers' living arrangements, the quality of their employees' home lives will improve.
A spokesperson for the company said: "With the pay raise, we hope workers don't need to work overtime as much and thus gain more time for leisure and have a happier working environment."