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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)