updated 11:35 am EDT, Fri October 1, 2010
Foxconn issues promised wage hike for workers
The promised second round of pay raises for Foxconn factory workers is due to come into effect in October, according to a Friday report. The company, which has come under pressure from its customers over worker suicides at its Shenzen factory, will boost assembly line worker salaries by two-thirds, with monthly wages amounting to the equivalent of $299. The raise is the second of the year.
The pay raise will be seen by about 85 percent of the workers at the plant. Back in June, the company issued a 30 percent pay raise to its Shenzen employees.
Foxconn supplies electronics makers such as Apple, Dell and HP, among others. Its image was marred by 11 public suicides. The deaths were characterized as a combination of very long, tough work shifts and a death compensation system that paid the equivalent of 10 years of work, giving some a stronger incentive to kill themselves to provide for their families than to keep working. Since then, the company has tried to fix the issue by improving worker living conditions, organizing activities to boost morale and increasing wages, although it has also taken more aggressive steps such as anti-jump netting and decreasing the death bonus.