Foxconn gives workers huge pay rise after spate of suicides
TAIPEI, Taiwan (AP) — Foxconn workers in China will get another pay raise in coming months, on top of an increase that just took effect in response to recent worker suicides, the company said yesterday.
Taiwan-based Foxconn Technology Group said salaries would be raised in October to 2,000 yuan (US$293) for workers at its plant in the southern Chinese city of Shenzhen. Workers elsewhere in China will get raises in July adjusted for local conditions, the statement said.
Less than a week ago, the maker of iPads, iPhones and other electronic gadgets for international companies had raised workers' pay by 30 percent at its plants across China.
The basic salary at Foxconn's China plants was about 900 yuan ($130) per month before the 30 percent raise, and new recruits are paid 1,200 yuan ($176) per month.
"This wage increase has been instituted to safeguard the dignity of workers," said Foxconn Chairman Terry Gou in the statement. "We are working diligently to ensure that our workplace standards and remuneration not only continue to meet the rapidly changing needs of our employees, but they are best-in-class."
The company added workers in Shenzhen have to pass a three-month review period before they are qualified for the October raise. It did not elaborate. Foxconn employs 300,000 people in Shenzhen.
Labour activists accuse the company of having a rigid management style, an excessively fast assembly line and forced overwork. Foxconn denies the allegations, but it has been under great public pressure to improve conditions at its Chinese operations.