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Hon Hai/Foxconn to 'significantly' raise wages in Taiwan

updated 11:15 am EDT, Thu April 5, 2012

Attracting, retaining talent main concern

Apple's primary supplier, Hon Hai -- better known as Foxconn -- is "significantly" raising wages for Taiwanese workers, a Hon Hai spokesman tells the Wall Street Journal. The raise will take effect in July, and affect roughly 10,000 people at the company's headquarters, most of whom work on research and development, marketing, and business planning. The spokesman, Simon Hsing, says Hon Hai still hasn't decided on the exact size of the salary hike, but that the company wants to better attract and keep talent.

Hon Hai's Taiwanese labor force is notably distinct from that in China, where hundreds of thousands are employed in assembly-line jobs. That group had basic salaries raised on February 1st, as Hon Hai and Apple came under increasing fire for poor working conditions at Chinese factories. Activists have highlighted problems like low wages, excessive overtime, and serious safety concerns, which were recently validated by a Fair Labor Association report.



By Electronista Staff
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  1. DrSkywalker

    Fresh-Faced Recruit

    Joined: Mar 2011

    0

    And then on to the next Third World country...

    We've seen this with Japan, and on and on. Eventually their pay will increase to the point that they have to go to the next country with low wages for production.

    Someday we will all realize that the Wal-Mart mentality ("Everyone deserves what the rich people have" - a paraphrase of their earlier motto) is not good for the economy because you're shipping your jobs offshore so that you can have 4 $800 HDTVs instead of 1 $3200 HDTV built in Cleveland. My folks bought a mohair sofa in the late 50s for $600 when my father made $500/mo as a pharmacist. Relative costs have changed dramatically, but that means that we're not producing anything and thus there are no jobs except at Chik-Fil-A. I'm slightly to the right of Atilla the Hun, but we need to realize that to keep a robust economy we actually have to make stuff like tires and electronics. Can't see the general populace figuring that one out sadly.

  1. chucker

    Fresh-Faced Recruit

    Joined: Mar 2007

    +1

    seen it happen before...

    What? you're arguing against development of third world countries... indeed Atilla had a more enlightened view on world development than you...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: And then...

    but that means that we're not producing anything and thus there are no jobs except at Chik-Fil-A.

    First and foremost, Chick-fil-a is a great chain and wonderful job oppurtunity!

    Second, what's your solution, go back to the days of yore, tariff all imports by several hundred percent (if not just block them all) and basically force companies to manufacture in the US? Wow, just like communist russia! And that worked out so well!

    There's just one problem. How are you sure you'll have enough of a workforce to join the manufacturing space? We already see now that there are jobs that Americans just don't want, which is why the immigrant population seems to be overly employed in those areas.

    And you're also missing the bigger political picture! Trade helps prevent war! Heck, trade helps overthrow regimes! We're not just exporting American jobs. We're exporting freedom. If you look at the countries that still hold on to their silly little empires, they're the ones the US has no relations with: North Korea and esp. Cuba. The idiotic politicians have spent 50 years boycotting Cuba because of the Florida Cuban populace and having their feelings hurt. And what has this done? Nothing. Cuba is basically right where it was 50 years ago. Castro would have been gone 20 years ago if we treated them like we treated any other Communist nation. Heck, the US treats China with kid gloves even though they're just as bad as Cuba on civil rights or anything else. But they have stuff we want, so we look the other way.

    Trade is good. Not just for the US, but for the world. Going back is short-sighted and could cost us way more in the long run.

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