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Foxconn aims at doubling wage in China by 2013
By Zhu Shenshen |
May 25, 2012, Friday
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Online Edition
Online Edition
FOXCONN Technology Group, contract maker of Apple's iPhone and iPad, will double average the wage of its one million employees in the Chinese mainland in the second half of next year, in line with its expansion plan.
The average monthly income will hit 4,400 yuan each month (US$698) then, surpassing the level of income of Taiwan university graduates, Foxconn's president Guo Taiming was cited by the Taiwan Business Week as saying today.
Foxconn has already hiked its employees' wage three times since 2010, when more than 10 employees committed suicide in its facilities due to great pressure and low wage, which was 900 yuan each month then. Liu Kuang, Foxconn's spokesperson based in Shenzhen, declined to make comments today.
The recent wage hike for Foxconn, which now aims to transfer more production capacity from Shenzhen to other mainland regions like Sichuan, Henan and Jiangsu provinces, was a 20 percent hike for employees to 2,200 yuan on average in March.
Foxconn also plans to build a plant in Chengdu of Sichuan Province to make iPhone screen panels, media reported today. Meanwhile, it will invest US$210 million to build an Apple production line in October in east China's Jiangsu Province. Two weeks ago, Foxconn broke ground its new China headquarters in Shanghai.
The major contract manufacturer of Apple now hires more than 1 million employees in the mainland, accounting for more than 80 percent of its global base. Besides the suicides, Foxconn was found to be involved in multiple violations of labor law, like excessive hours and unpaid overtime, according to a statement from US independent Fair Labor Association in March.
After that, Foxconn was committed to a reduction of weekly work time to 49 hours from previous up to 60 hours and improved its wage level. Tim Cook, Apple's chief executive, also visited Foxconn's factory in April during his China visit as the company's CEO.
The high wage increase is welcomed by workers but it's expected to put more labor-cost pressure on Chinese electronics makers, industry insiders said.
In the first quarter, Foxconn's parent Hon Hai generated a net profit of TW$14.9 billion (US$512 million). It was a slight growth from a year ago's TW$14.4 billion, but down sharply from the last quarter of 2011, when it posted TW$35 billion in profit.
The average monthly income will hit 4,400 yuan each month (US$698) then, surpassing the level of income of Taiwan university graduates, Foxconn's president Guo Taiming was cited by the Taiwan Business Week as saying today.
Foxconn has already hiked its employees' wage three times since 2010, when more than 10 employees committed suicide in its facilities due to great pressure and low wage, which was 900 yuan each month then. Liu Kuang, Foxconn's spokesperson based in Shenzhen, declined to make comments today.
The recent wage hike for Foxconn, which now aims to transfer more production capacity from Shenzhen to other mainland regions like Sichuan, Henan and Jiangsu provinces, was a 20 percent hike for employees to 2,200 yuan on average in March.
Foxconn also plans to build a plant in Chengdu of Sichuan Province to make iPhone screen panels, media reported today. Meanwhile, it will invest US$210 million to build an Apple production line in October in east China's Jiangsu Province. Two weeks ago, Foxconn broke ground its new China headquarters in Shanghai.
The major contract manufacturer of Apple now hires more than 1 million employees in the mainland, accounting for more than 80 percent of its global base. Besides the suicides, Foxconn was found to be involved in multiple violations of labor law, like excessive hours and unpaid overtime, according to a statement from US independent Fair Labor Association in March.
After that, Foxconn was committed to a reduction of weekly work time to 49 hours from previous up to 60 hours and improved its wage level. Tim Cook, Apple's chief executive, also visited Foxconn's factory in April during his China visit as the company's CEO.
The high wage increase is welcomed by workers but it's expected to put more labor-cost pressure on Chinese electronics makers, industry insiders said.
In the first quarter, Foxconn's parent Hon Hai generated a net profit of TW$14.9 billion (US$512 million). It was a slight growth from a year ago's TW$14.4 billion, but down sharply from the last quarter of 2011, when it posted TW$35 billion in profit.
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