Terrible thing to happen. Hope the guy has found some peace in the afterlife.
They suspended the security chief because that's pretty much standard procedure when a serious allegation like that is made, same as it is here in Europe.
And as for all the "Apple should sever ties with FoxConn and go somewhere else, stop dealing with China blah blah blah" people-
It's the consumer that demands low prices. If you want to have these things made by ethical companies, in ethical (by our own inflated standards anyway) countries by well-treated workers, be prepared to pay a lot of money for them.
Also, stop buying branded runners/tracksuits/any electronics/toys for your kids. Otherwise it's simple hypocrisy.