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Foxconn to up wages again at suicide-hit China plant
A couple stand on a footbridge in front of nets, newly installed to prevent workers from jumping to their deaths, outside one of Foxconn's factory buildings in the township of Longhua, in southern Guangdong province June 2, 2010.
Credit: Reuters/Bobby Yip
TAIPEI |
TAIPEI (Reuters) - iPhone maker Foxconn (2038.HK) has offered workers at its Shenzhen manufacturing hub in China a 66 percent performance-based pay rise as it tries to deal with the fallout from a spate suicides there.
Foxconn, owned by Taiwan contract electronics maker Hon Hai Precision Industry (2317.TW), said on Sunday production line workers would be able to earn 2,000 yuan a month if they pass a three-month performance review. It did not give details of the evaluation process.
The latest hike, to take effect as early as October 1, comes on top of a 30 percent across the board rise in the cash part of wages announced last week and means wages will be more than double since employee suicides became a major issue last month. Before last week's rise, workers earned 900 yuan a month.
"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.
"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."
A total of 10 workers have committed suicide at the company's base in Longhua, southern China this year. They were all young migrant workers, among the millions of people who leave the poor hinterlands of China for the boom towns of the south and east coastal areas.
Another worker died late in May from what his family said was overwork, a claim the company denied.
The string of deaths have focused attention on working conditions in a region experiencing growing labor unrest and have triggered investigations by Apple (AAPL.O) and other big Foxconn clients, including Dell Inc (DELL.O).
Apple CEO Steve Jobs called recent suicides at the plant troubling but said last week the site was not a sweatshop.
Japan's Honda Motor (7267.T) offered a 24 percent wage hike to end a sometimes violent strike last week at a car parts plant in the same region, dubbed the world's workshop.
Foxconn said wage increases for supervisors would be announced by August 1 and wage rises for plants elsewhere in China will be announced starting on July 1.
It added that while overtime work was always voluntary, the wage increase would make working overtime a choice rather than a necessity for some employees.
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(to the tune of The Beverly Hillbillies)
Come and listen to a story bout a man named Jed,
A poor college kid barely kept his family fed,
But then one day he was talking with a recruiter,
He said “They’ll pay ya big bucks if ya work on a computer,”
Unix that is … CRT’s … Workstations;
Well the first thing ya know ol’ Jed’s an Engineer.
The kinfolk said “Jed move away from here”,
They said “Arizona is the place ya ought to be”,
So he bought some donuts and move to Ahwatukee,
Intel that is … dry heat … no amusement parks;
On his first day at work they stuck him in a cube,
Fed him more donuts and sat him at a tube,
They said “Your project’s late but we know just what to do,
Instead of 40 hours, we’ll work you fifty-two!”,
OT that is … Unpaid … Mandatory;
The weeks rolled by and things were looking bad,
Some schedules slipped and some managers were mad,
They called another meeting and decided on a fix,
The answer was simple, “We’ll work him sixty-six”,
Tired that is … Stressed Out … No social life;
Months turned into years and his hair was turning gray,
Jed worked hard while his life slipped away,
Waiting to retire when he turned sixty-four,
Instead he got a call and they escorted him out the door,
Laid-off that is … Debriefed … Unemployed.
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