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Rumor: Apple paying Foxconn workers directly

After all of the trouble last week at Foxconn, the Chinese factory suffering from worker suicides, rumor has it that Apple is stepping up to increase wages at the plant by paying workers directly. A Chinese website claims that Apple may eventually pay workers as a percentage of product sales, though the numbers aren't quite clear -- the website says the payout would be around 1 to 2 percent of product sales, which sounds high. The report also says that the iPad will be the first product under this plan, which is good news for the workers considering how it's selling.

This is still just a rumor at this point -- Foxconn makes products for all kinds of companies, and while it would be excellent for Apple to contribute to the low wages these workers are paid, it seems unlikely that it would step in with more money. Most likely, Apple would simply pressure Foxconn to make more changes, which is what Apple and other clients have done so far.

But obviously the suicides are a major issue, and if Apple can alleviate the problem by providing higher wages on its own, that may help. We'll have to wait and see if any officially announced plans come to light.

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After all of the trouble last week at Foxconn, the Chinese factory suffering from worker suicides, rumor has it that Apple is stepping up...
 

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maos

you know, there is actually incentive to commit suicide. apparently the families of suicide victims get compensated many times their salary if they die. So if i were desperate and depressed from low pay and work pressure, i'd probably commit suicide too.

Bite the dust and the whole family wins.

June 02 2010 at 8:54 AM Report abuse rate up rate down Reply
StoneRoses

BS, Apple want more profit and they want Foxconn to be as cheap as possible.

That's the way global business works, get real Apple fanboy.

June 01 2010 at 11:16 PM Report abuse rate up rate down Reply
1 reply to StoneRoses's comment
maxats

Isn't the use of the term "fanboy" in a debate a disqualification? Thanks for playing Effervescent, but you lose!

June 02 2010 at 4:08 AM Report abuse rate up rate down Reply
timrowledge

You can't simply compare the $/hr paid in China to that in some other country; you need to evaluate what sort of life it buys you. I don't know what the comparison is like between US & China - let alone knowing any detailed comparisons involving specific cities/areas; there are comparisons on the web and maybe some of them actually mean something. I *do* know that moving from Silicon Valley to rural Vancouver Island roughly halved my cost of living.

June 01 2010 at 9:13 PM Report abuse rate up rate down Reply
Leiwei

Was looking at the iPhone 4g case leak on engadget, and I suddenly can't help but think maybe it's one of these sweat shop workers in China that is intentionally selling the pieces for extra $ because of the poor earning potential in the occupation.

June 01 2010 at 6:55 PM Report abuse rate up rate down Reply
rogerruthberg

Always with the negative waves, Moriaty...give it a rest already.

June 01 2010 at 6:31 PM Report abuse rate up rate down Reply
Leiwei

Then your Sony laptop, Microsoft xbox, and nintendo wii are probably yellow with dust trapped somewhere too since they also contract with foxconn.

June 01 2010 at 5:47 PM Report abuse rate up rate down Reply
Jason

Hmm. I have a 3-yr-old Macbook that isn't the slightest bit yellow, and I have an iPhone 3G without a single speck of dust (that I can see), so I would say they've made at least one of each already!

June 01 2010 at 5:19 PM Report abuse rate up rate down Reply
jwfnla

I wonder how much an iPad, for example, would cost if it were made here. Our country could sure use the work.

June 01 2010 at 5:11 PM Report abuse rate up rate down Reply
6 replies to jwfnla's comment
Dreamwriter

Money isn't really the problem, though. Tons of people want to work at FoxConn because they make a TON of money for the region. Not only is the pay good, but FoxConn is one of the Chinese companies that allows workers to work for overtime pay if they desire. So really, it's a tough situation - people are suiciding because of being overworked, but it's their own choice to work that much. I guess if their regular pay was higher there'd be less incentive to work that much overtime, but to keep up the company output the company would have to hire more workers.

June 01 2010 at 5:07 PM Report abuse rate up rate down Reply
BloodShot Robot

Seems odd for apple to pay the workers of a factory that makes components for almost all hardware companies.

June 01 2010 at 4:51 PM Report abuse rate up rate down Reply
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