Foxconn workers getting 33% wage boost

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Foxconn workers getting 33% wage boost

2 June 2010 687 views 2 Comments

From line workers on up to supervisors at Foxconn’s factories will be getting a rather substantial wage increase. CENS reports that Foxconn (Hon Hai) rank-and-file production workers and their immediate supervisors will be getting an up to 33 percent wage increase, rising from about 900rmb ($131) to 1,200rmb ($175) per month. Thereupon, it’s rumored that Apple will be picking up the tab for this increase, raising its per unit assembly remuneration rate from 2.3 percent of the final retail price to 3 percent.

However, investors have been punishing Foxconn shares over the news, which is an interesting twist — workers getting paid enough to stop killing themselves is bad for business.

Foxconn employs 820,000 workers in China with an additional 3,700-plus Taiwanese also working in the Middle Kingdom.

In related news, Bloomberg reports that Honda China is also increasing worker salaries by 24 percent. Can the “factory of the world” survive a huge wage increase…

What’s your take?

2 Comments »

Apple to directly boost Foxconn wages [u] - MAC.BLORGE said:

[...] See also: Foxconn workers getting 33% wage boost [...]

# 2 June 2010 at 10:44 am

Foxconn workers getting another raise - IPHONETOUCH.BLORGE said:

[...] 1,200 RenMinBi (RMB) to 2,000 RMB ($293). This latest increase, which is expected in July, follows an approximate 30 percent increase last month from about 600 to 900 [...]

# 6 June 2010 at 11:06 pm