Foxconn Increases Employees’ Wages in China
Challenged by a growing management crisis, which included worker suicides, iPhone maker Foxconn Technology will increase employees’ wages at its China operations by 20%, according to reports last Friday in Hongkong.
According to reports, company execs said that plans for wage hikes had been brewing for months to solve the labor shortage. They added that this could lift the spirits of their workers, especially the more than 300,000 workers at the Longhua industrial complex in the city of Shenzhen.
Apparently, more than a dozen employees have jumped off buildings in the complex this year, while another worker recently failed in a suicide attempt by wrist slashing last Thursday. This drew allegations of stressful working conditions.
A Hon Hai spokesman told Reuters that the wage hike was “tied to the cash portion of salary packages and would apply to all its workers in China.”
According to reports, Hon Hai’s quarterly labor costs are pegged to rise by $84 million because of the wage hike.