Foxconn Workers Offered 66 Percent Raise

Following a rash of suicides, workers at the Foxconn Shenzhen factory have a shot at a raise. Another one.

This is the most recent pay increase at a factory complex that has garnered internationally attention for its workers jumping to their death.

Foxconn manufactures the iPhone, the iPad, the PS3, the Xbox 360, the Wii and the PS3.

In late March, Foxconn workers received a 20 percent pay increase. The company claimed that the raise was not in response to the recent suicides, but planned. That figure then increased to a 30 percent raise, bumping wages from the equivalent of US$130 to $US175 a month. It was even rumoured that Apple was chipping in.

Now, Foxconn is offering a performance-based 66 percent pay increase. Sixty-six percent!

In order to receive the $US292 per month salary, the workers must pass a three month performance review. What exactly that review entails isn't yet known.

"This wage increase has been instituted to safeguard the dignity of workers, accelerate economic transformation, support Foxconn's long-term objective of continued evolution from a manufacturing leader to a technology leader, and to rally and sustain the best of our workforce," said Foxconn founder and Chairman Terry Gou in a statement, reports Reuters.

"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 that they are best in class."

Earlier this month, a Foxconn worker dropped dead after apparently completing a 34-hour factory shift. Foxconn has denied this claim, however. Apple exec Steve Jobs contends that Foxconn is "not a sweatshop".

Foxconn to up wages again at suicide-hit China plant | Reuters [Reuters via Gizmodo]


Comments

    Part of the 3 month performance review contract is that their not allowed to sleep. If they can do that for 3 months they get the rise.

      Citation, please.

      According to Reuters, Foxconn didn't give any details about the evaluation process.

    "Foxconn is “not a sweatshop”."

    Indeed, it's legal slavery.

      Slavery is by definition a non-consensual practice.

      Working at Foxconn is completely voluntary (i.e. no other person uses force or threats thereof to make someone accept a position there). It also pays higher wages and conditions than other businesses, and the wages they pay are by Chinese standards quite high.

      You might find it easy to call Foxconn's conditions deplorable by western standards, and indeed they are, but compared to all the other options avaliable to a Chinese person, they are damn good conditions.

      Do you honestly think that things were better when they were all peasant farmers in rice paddies?

      Study some development economics before you consider yourself qualified to make pronouncements like "legal slavery."

    Because everyone knows that the more money you have, the happier you are.

      Money doesn't buy happiness, but it certainly can buy at least some of the ingredients that lead to more happiness.

      This is a huge pay rise by Chinese standards, after adjusting for Purchasing Power Parity. Don't knock it.

    'Must pass a 3-month performance review'

    means

    'is still alive after 3 months'

    And guys, $300 a month is actually pretty good, especially considering the general cost of living there, and comparing it to other third-world countries.

    Companies will always try to pay as little as possible. Foxconn pays better than most and has better facilities than most. It is a grind, but it is a long, long way from being a sweatshop.

    Hell, even the owner of Kotaku will pay as little as possible when it suits, and ask his employees to work 7 days a week pretty much for minimum wage.

    "What was the toast of New York City paid to produce this pixelated gold? Well, at first it was $2,000 a month to produce 12 posts a day, seven days a week. (And of course, as a freelancer, benefits like health care and goodies like stock options or equity weren't even in the room, let alone on the table.) Soon after Gawker launched in December 2002, Denton determined that it wasn't necessary to produce content on weekends, so he cut the stipend to $1,500 a month. (Denton wants it known that more recently, he's upped his bloggers' salaries and gives a small bonus when pageviews increase.) Spiers was a star working at Wal-Mart wages. So it couldn't have been much of a shock when she jumped to better-paying New York magazine"

    http://www.wired.com/wired/archive/12.06/blog.html?pg=2&topic=blog&topic_set=

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