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Foxconn workers to receive 30 percent raise

There's some good news coming from the beleaguered Chinese Foxconn factory this week. Following reports of employee suicides (10 since January of this year), Reuters reports today that production line workers will be receiving a 30% increase in pay, effective immediately. Hopefully this measure will address some of the troubles workers are facing.

Foxconn assembles many Apple products, and there was a rumor earlier this week that Apple would begin paying Foxconn workers a percentage of product sales, perhaps 1 to 2 percent, though that was never substantiated. Steve Jobs expressed concern over the suicides at this week's All Things D conference, saying that Apple has people specifically assigned to the case.

This factory's troubles started years ago. We first saw a report of Foxconn violating Chinese labor laws back in 2006, admitting that their employees work about 80 extra hours each month -- well beyond the 36 extra hours that Chinese law allows for. In February of this year, a Reuters employer was roughed up by factory personnel while photographing the building.

Last month, Foxconn's CEO stated that "we are not a sweatshop," and promised that the company will "soon be able to stabilize this situation."

We hope the challenges at Foxconn can be resolved soon. Our hearts go out to the families who've lost loved ones.

[Via MacDailyNews]


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There's some good news coming from the beleaguered Chinese Foxconn factory this week. Following reports of employee suicides (10 since...
 

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Josh

I wouldn't mind a 30% increase. ~$20 an hour would rock.

June 03 2010 at 5:10 PM Report abuse rate up rate down Reply
alf

fuck foxconn! the solution here is for apple [with all its billions] to just build/buy its' own factory and pull all of the people working for them via foxconn now, give them a decent wage, with stock options, and don't force them to live within the prison walled slums of foxconn's camp anymore - the end! no more foxconn to deal with, no one else to blame, as you've removed the middle man from the equation! that would offset what they already pay foxconn enough to give every worker a 50% raise!

the mark up on all the goods from china and other nafta victim countries is in the thousands to tens of thousands in percent. when i had my computer store and was a sprint dealer, our cost on a wall, usb, or car charger for a phone was anywhere from .25-$1.70, and we sold them for $20-40, so believe me, apple's making out like a bandit already! enough said!!!

June 03 2010 at 3:09 PM Report abuse rate up rate down Reply
ilkyone

are we sure it was a "Reuters employer" that was roughed up, or was it an employee?

Agreeing with Skinner above and laughing at the nom de plume for its cleverness, nobody is sure that the pay rate was the problem...

It could sort of be like fixing a leaking oil well by saying it is forbidden (while letting everyone else drill right next to it).

June 03 2010 at 2:45 PM Report abuse rate up rate down Reply
igzabier

"not a sweatshop"?Steve Jobs quote-how's that? A raise from 70¢/hr to ~$1/hr, and the guy who died after 38 hour shift? solution:put anti-suicide nets on roofs?
in china a good meal can be 70¢
-Foxconn pays its workers according to China’s legal minimum wage, but most make at least double that through constant overtime. Labour activists have been asking for a 50 per cent pay rise. The base monthly salary at the Longhua plant is Rmb950 ($140) but staff said they made almost Rmb2,000 a month including overtime.
-ETHICS is not an option( in future more so) at present all our 'goods' are BAd. HONDA,TOYOTA,APPLE,INTEL,MSOFT,DISNEY(haiti), BP - all the oil spills and blood spills of workers will not stop until WE stop oil and unethical conspicuous consumption (jeez, what a raving commie-not)

June 03 2010 at 1:45 PM Report abuse rate up rate down Reply
EnzoGt14

They make around $160 a month now with the 30% increase. Apple makes $40 more selling 1 low end 8GB iTouch. I make 6 times that a month at my part-time job. I doubt we are done hearing about foxconn.

June 03 2010 at 1:00 PM Report abuse rate up rate down Reply
Hank Cazorp

Doesn't a 30% pay raise in response to suicides constitute a positive reinforcement of the behavior?

If you have nothing else to lose by ending your life, you now at least have something to gain for your friends and colleagues.

I'm not sure this is the correct course of action for Foxconn. They probably should have done nothing - as media-unfriendly as that may sound.

June 03 2010 at 12:58 PM Report abuse rate up rate down Reply
Sealos

And that cost will just be passed on to the consumer.

Will the $199 price point be a thing of the past much like AT&T's unlimited data?

June 03 2010 at 12:31 PM Report abuse rate up rate down Reply
Steve

You have to be kidding me with that picture.

Any chance we can get a "No Foxconn Suicides" feed?

Never mind, I'm just going to go somewhere else for a while.

June 03 2010 at 12:22 PM Report abuse rate up rate down Reply
Rod Simmons

I suspect money is not the root of the problem, although an increase will go a long way for workers.

I personally would rather pay more for my tech to have it made under better conditions. And I would pay to have it made in the USA. Then again I buy Apple products so I guess I have extra money to burn.

June 03 2010 at 12:12 PM Report abuse rate up rate down Reply
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