TAIPEI May 28 Taiwan's Hon Hai Precision
Industry (2317.TW) plans to raise salaries for workers at its
Foxconn unit in China by about 20 percent, it said on Friday, a
move that follows a spate of apparent suicides at some of its
A tenth employee of Foxconn (2038.HK), maker of the Apple
(AAPL.O) iPhone, jumped to his death late on Wednesday. Another
employee attempted to slit his wrists, but survived with
medical attention, the Xinhua news agency said late on
Hon Hai spokesman Edmund Ding the rise in the cash portion
of salary packages for all its workers in China had been
planned for some time. He did not say when the rises would be
implemented. Hon Hai shares rose 0.8 percent in a broader
Taiwan market .TWII up 1.6 percent.
The planned pay rise could increase Hon Hai's quarterly
labour costs by about T$2.7 billion ($84 million), which would
erode its operating profit by around 10-12 percent, Citi said
in a report.
The spate of deaths has thrown a spotlight on the labour
practices of Foxconn, whose clients also include Dell DELL.O,
Hewlett Packard (HPQ.N) and Sony Ericsson (ERICb.ST) (6758.T).
Apple and other clients have said they are investigating
working conditions at Foxconn, which has some 420,000 employees
at its base in Shenzhen and has come under fire for its
secretive corporate culture.
Separately, Hong Kong's South China Morning Post reported
on Friday that mainland media have been ordered to tone down
their reporting of the events at Foxconn.
Many major newspapers and websites said propaganda
officials had told them to recall their reporters from
Shenzhen, and use reports from the official Xinhua news agency
and other official statements.
One reporter from a Guangdong publication told the
newspaper he had seen at least four ban orders in the last
($1=32.03 Taiwan Dollar)
(Additional reporting by Doug Young in Hong Kong; Editing by