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Foxconn workers given 30% pay rise
By Wang Xiang |
June 2, 2010, Wednesday
|
Online Edition
Online Edition
WORKERS at electronics manufacturer Foxconn have won the pay raise company chairman Terry Gou promised them last month after a spate of workers' suicides.
Rather than Gou's promised 20 percent raise, Foxconn increased workers' pay by at least 30 percent, according to Taiwan-based news Website udn.com.
The lowest-ranking assembler's monthly salary rose from 900 yuan (US$131.82) to 1,200 yuan. The pay rise for officials would be announced later, the report said.
The sharp wage increase came after 10 suicides and 13 attempts in Foxconn's Shenzhen plant. But in Foxconn's statement today, it did not mention the suicides, only citing the general increase of consumer prices on the mainland.
Foxconn said it hoped the wage rise could give its workers more leisure time. The report also said Gou was considering moving its mainland factory to western China, where most of its workers came from, to ease their homesickness.
But the big jump in workers' pay dampened the company's stock price before it could lift their morale.
The Hong Kong listed Foxconn was the best performing blue chip in Hong Kong yesterday. But after media reports about the pay rise, the stock price dropped 1.25 percent by 2:30pm after it climbed up 3.42 percent this morning.
Caijing.com said Foxconn's pay rise may set off a chain reaction among manufacturers. Foxconn is the world's biggest original equipment manufacturer with more than 820,000 workers on the Chinese mainland.
The string of tragedies attracted criticism that Foxconn was a "sweatshop" and its worker were toiling under rigid management.
The basic salary for a normal worker in Foxconn's Shenzhen factory was only 900 yuan, the minimum wage. They have to work overtime, 120 to 140 hours every month, to make money in the boomtown.
But Foxconn's founder Terry Gou denied these allegations when he visited the Shenzhen plant last month.
Apple Inc Chief Executive Steve Jobs also said today that Foxconn's factory in China "is not a sweatshop" though he admitted the worker deaths were "troubling." Foxconn assembles the company's iPhones and iPads.
Rather than Gou's promised 20 percent raise, Foxconn increased workers' pay by at least 30 percent, according to Taiwan-based news Website udn.com.
The lowest-ranking assembler's monthly salary rose from 900 yuan (US$131.82) to 1,200 yuan. The pay rise for officials would be announced later, the report said.
The sharp wage increase came after 10 suicides and 13 attempts in Foxconn's Shenzhen plant. But in Foxconn's statement today, it did not mention the suicides, only citing the general increase of consumer prices on the mainland.
Foxconn said it hoped the wage rise could give its workers more leisure time. The report also said Gou was considering moving its mainland factory to western China, where most of its workers came from, to ease their homesickness.
But the big jump in workers' pay dampened the company's stock price before it could lift their morale.
The Hong Kong listed Foxconn was the best performing blue chip in Hong Kong yesterday. But after media reports about the pay rise, the stock price dropped 1.25 percent by 2:30pm after it climbed up 3.42 percent this morning.
Caijing.com said Foxconn's pay rise may set off a chain reaction among manufacturers. Foxconn is the world's biggest original equipment manufacturer with more than 820,000 workers on the Chinese mainland.
The string of tragedies attracted criticism that Foxconn was a "sweatshop" and its worker were toiling under rigid management.
The basic salary for a normal worker in Foxconn's Shenzhen factory was only 900 yuan, the minimum wage. They have to work overtime, 120 to 140 hours every month, to make money in the boomtown.
But Foxconn's founder Terry Gou denied these allegations when he visited the Shenzhen plant last month.
Apple Inc Chief Executive Steve Jobs also said today that Foxconn's factory in China "is not a sweatshop" though he admitted the worker deaths were "troubling." Foxconn assembles the company's iPhones and iPads.
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