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Foxconn raises wages yet again to avoid suicides

updated 11:10 pm EDT, Sun June 6, 2010

Foxconn 66pc pay hike comes after earlier raise

Foxconn today promised still another raise to its factory workers to head off continued suicides at the company. The Chinese firm will pay 66 percent more to workers on top of the earlier 30 percent raise depending on their performance. Those that pass a three-month evaluation will get the improved pay, which chairman Terry Gou acknowledged was directly related to the conditions of workers.

"This wage increase has been instituted to safeguard the dignity of workers, accelerate economic transformation, support Foxconn's long-term objective of continued evolution from a manufacturing leader to a technology leader, and to rally and sustain the best of our workforce," he said.

The increase takes effect as soon as October 1 for regular workers in the Shenzhen area. Other Chinese plants will have their details on July 1, and supervisors will find out how their pay is affected on August 1.

Foxconn's rate hike won't necessarily address questions of overwork that may have contributed to the death of one worker last month or as a possible factor underlying the suicides. The company nonetheless said during the pay raise that it would reduce working hours by making overtime less essential for some employees. Productivity may also be helped as employees are less likely to quit prematurely and thus get more experience with fewer accidents.

The increases may translate to price increases on devices but may be key to curbing a public relations disaster for Foxconn. It supplies much of the electronics industry and has been under intense scrutiny with Apple, Dell, HP, Nintendo and others formally investigating working conditions. Apple CEO Steve Jobs has defended some practices but made it clear that conditions triggering suicides weren't acceptable.

By Electronista Staff
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  1. RoosterJuice

    Fresh-Faced Recruit

    Joined: Mar 2010




  1. IxOsX

    Fresh-Faced Recruit

    Joined: Feb 2009


    Some die from exhaustion.

    But the main problem remains: "Another Foxconn Employee Dies, After Working 34-Hours Straight"

    Is a shame that in a globalise world, some countries play with slavery and low pays to be competitive. As the world economy it is, lets just hope that something of the kind will not happen to our sons and daughters. Or even to us when we all came to old age and can't find no others jobs.

    I like Apple, but refuse my self to be a fan(fanatic) and have an attitude not critic about the multinationals (Apple, Dell, HP etc...). This multinationals have the duty of only have manufacture industries on countries that play with the some human and labor rights of the civilize world. Any multinational that does not comply with the rules of the civilized world should be hard taxed on their products, all over the civilized world.

    Shame on them, and on who supports the attitude.

  1. pablorph

    Fresh-Faced Recruit

    Joined: May 2010


    I do not defend Foxconn.

    But, this is the beginning of a similar threat that is currently affecting the US. Now, the US is transferring huge amounts of money to the Middle East and Africa in the form of oil payments. This is due to the wasteful habits and short-sightedness of Americans. We have to "have it now" in order to "keep up with the Jones."

    While I do not codone the low wages and slavery like conditions, raising the wages in China will certainly mean raising the cost of goods coming from China. And we should support that for the workers there. And we gladly will. It is in Americans nature to be generous. However, unless we curb our spend-thrifty ways, we will soon begin to send to China double or triple the last 2 years $495 Billion worth of Deficit (US Census Bureau stats). Imagine sending $1 Trillion dollars to China per year.

    I don't think the increased wages will mean a boost in US jobs. see link:

    Nor will it increase dramatically imports from other countries into China because most goods are already made in China. This is just a win-win for China. Watch the prices at your local Wal-Mart in the near future.

  1. testudo

    Forum Regular

    Joined: Aug 2001


    same problem

    Someone really needs to pass some information along to the idiots at Foxconn.

    People aren't committing suicides because they aren't making enough money. They're committing suicide because of the ridiculous working conditions. How about hiring more people and reducing the workloads?

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