Saturday, February 18, 2012

Foxconn raises Chinese employee wages for third time since 2010

Foxconn, one of Apple's biggest manufacturing partners, has announced that it has raised the wages of its Chinese workers by 16-25 percent beginning this month. This is the third such pay increase since 2010, when Foxconn saw a rash of suicides, primarily from it Shenzhen facility in southern China.

The company's statement read:

"As a top manufacturing company in China, the basic salary of junior workers in all of Foxconn's China factories is already far higher than the minimum wage set by all local governments.

"We will provide more training opportunities and learning time, and will continuously enhance technology, efficiency and salary, so as to set a good example for the Chinese manufacturing industry."

With the raise, the pay of a junior level employee in Shenzhen has risen to 1,800 yuan (or about $286) monthly. If the employee passed a technical examination, his pay could rise still further, above 2,200 yuan (about $349).

The company added that three years ago, that same employee would only have received 900 yuan monthly (or about $143).

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The news of a raise at Foxconn's Chinese factories comes as both Apple and Foxconn are under intense scrutity after a New York Times expose about conditions at Foxconn's Chinese facilities. The NYT report quoted examined what could only be called terrible working conditions in those plants, and both current and former Apple execs, who spoke of the company's knowledge of those conditions.

Earlier this week, the Washington-based non-profit Fair Labor Association (FLA) began inspections of the facilities of Foxconn and two other Apple manufacturers. Apple is the first tech firm to join the FLA.

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