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June 7, 2010

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Embattled Foxconn workers win new wage raise

FOXCONN workers on Chinese mainland would 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 yesterday that monthly salaries would be raised in October to 2,000 yuan (US$293) for workers at its Shenzhen plant in south China's Guangdong Province.

Workers elsewhere on the mainland would get raises in July adjusted for local conditions, it said.

Less than a week ago, the maker of electronic gadgets for international companies raised workers' pay by 30 percent at its mainland plants.

The basic salary at Foxconn's mainland plants was about 900 yuan per month before the 30-percent raise and new recruits are paid 1,200 yuan per month.

"This wage increase has been instituted to safeguard the dignity of workers," said Foxconn Chairman Terry Gou. "We are working ... to ensure our workplace standards and remuneration not only continue to meet the rapidly changing needs of our employees but are best-in-class."

The company said, without elaborating, that workers in Shenzhen had to pass a review period before qualifying for the October raise.

Foxconn employs about 300,000 people in Shenzhen alone.

Labor activists have accused the company of having a rigid management style, an excessively fast assembly line and crippling hours.

Foxconn denies the allegations but has been under great public pressure to improve conditions at its mainland operations.

Ten workers have killed themselves and three have attempted suicide at Foxconn's operations in Shenzhen this year, mainly employees who jumped from buildings.

A Foxconn worker in north China also committed suicide this year.

The firm is the world's largest contract maker of electronics.

In late May, Gou led a media tour of the company's mammoth industrial park in Shenzhen and promised to work harder to prevent more deaths.



 

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