Foxconn raises worker pay by 30 pct after suicides
June 2, 2010 The company, which makes iPhones, iPads and other electronic
gadgets, said the pay increase will take effect immediately at its
plants across China.
"With the pay raise, we hope workers don't need to work
overtime as much and thus gain more time for leisure and have a
happier working environment," said a Foxconn official who asked
for anonymity because he was not an authorized spokesman.
"It may also help cut the turnover rate and raise productivity
and product quality level," he said.
The basic salary at Foxconn's China plants is currently about
900 yuan ($130) per month.
Foxconn had been considering raising pay for months to cope with
a labor shortage following China's recovery from the global
recession. The eventual raise is higher than the 20 percent the
company had initially planned.
Ten workers have killed themselves and three have attempted
suicide at Foxconn's operations in southern China this year,
involving mainly workers who jumped from buildings. The most recent
suicide attempt involved a 25-year-old man who slashed his wrists
in the factory dormitory last week. One additional Foxconn worker
in northern China also committed suicide this year.
Labor activists accuse the company of having a rigid management
style, an excessively fast assembly line and forced overwork.
Foxconn denies the allegations.
The company, part of Taiwan's Hon Hai Precision Industry Co., is
the world's largest contract maker of electronics. Its long list of
big-name customers include Apple Inc., Sony Corp., Dell Inc., Nokia
Corp. and Hewlett-Packard Co.
Last week, Foxconn Chairman Terry Gou led a media tour of the
company's mammoth industrial park in Shenzhen and promised to work
harder to prevent more deaths.
Safety nets were being installed on buildings and more
counselors were being hired. He also said all employees were being
divided into 50-member groups, whose members would watch for signs
of emotional trouble within their group.