Foxconn Raises Worker Salaries, Third Time Since 2010

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Taiwan-based Foxconn has raised worker salaries at its Chinese plants by 16-25% this month, the third such increase since 2010. Foxconn factories produce iPhones and iPads, among many other things, and have come under scrutiny over fair labor practices and working conditions.

Foxconn factory exterior

A Foxconn Factory

Foxconn issued a statement Friday that indicated junior level workers would now be paid 1,800 yuan (US$290) per month, and if that worker passed a technical exam they could earn as much as 2,200 yuan, according to a report by Reuters.

This is up from the rate of 900 yuan which was being paid just three years ago. Foxconn stated, “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.”

Apple has taken some heat regarding the conditions at the factories after a series of suicides two years ago and a New York Times report that claimed poor safety conditions and long working hours existed at the plants. Apple recently took receipt of petitions from groups concerned about conditions at the factories.

Tim Cook has vigorously defended Apple’s responsibility and concern over this issue. The Fair Labor Association, at Apple’s request, had begin an independent inspection this week of the factories and their initial impression was that conditions were better than many other locations in that country.

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4 Comments

BurmaYank

New York Times gets Gizmodo treatment from Apple after negative reports (about its Foxconn operations) (Daniel Eran Dilger/AppleInsider):

“The New York Times appears to have lost its invitation to the Apple party in a vein similar to Gawker Media’s Gizmodo blog, after printing a series of scathing reports that described the company as indifferent to terrible worker conditions in China…”

jfbiii

I wonder how much higher Foxconn salaries would have to go before Apple is the only company that is able to use them at a profit? It’s not Apple that should be sweating this, it’s people who’s tiny margins are going to evaporate in this wave of labor price hikes.

And Gruber busted the underlying WP report cited in that Dilger article, BurmaYank. Pogue was in the hallway waiting his turn when Gruber’s private presentation ended.

Lee Dronick

It?s not Apple that should be sweating this, it?s people who?s tiny margins are going to evaporate in this wave of labor price hikes.

They would have to raise the price of their products and that would cause a howl.

jfbiii

It plays into Apple’s hand because it will make it that much more difficult for people to maintain the “Apple tax” illusion. We’re already seeing that nobody can build an iPad-equivalent for the price of an iPad. The real reason for mini-tabs is to avoid more direct comparisons.

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