updated 07:40 am EDT, Fri July 16, 2010
Foxconn says any wage hikes its own, not Apple's
Foxconn today denied claims that Apple is subsidizing workers. An executive reportedly told Taiwan's National Business Daily that the American company not only isn't paying a two percent subsidy on labor costs but has never received such a subsidy. The rumor is 'purely speculation,' the official said.
Rumors had circulated that Apple was paying extra after word of a rash of suicides, but Foxconn later raised wages itself to both address financial pressure to work overtime and to avoid using the family benefit payout from a suicide as an incentive. The contractor later stopped paying for suicides to eliminate the motivating factor.
Factories in and near Foxconn's manufacturing base of Shenzhen have often been a focus of work rights advocates, as workers are often paid little but encouraged to work multiple hours of overtime, often extending to six days a week. Apple is just one company using Foxconn as Dell, HP, Sony and others use it for some of their goods.