Feeds

Foxconn to create workers' paradise?

Report suggests 144 per cent pay rise on the way

The Power of One Brief: Top reasons to choose HP BladeSystem

Foxconn plans to double the minimum wage of its mainland China workers by 2013 as part of a renewed attempt to soften the image of the ultra-secretive company, says Taiwanese site Want Daily.

The outlet reports that Foxconn president and chairman Terry Gou said he wanted the firm’s Chinese workers paid at least 4,400 yuan (£441) each month, according to the paper’s English site WantChinaTimes.

This would be an increase on previous reports that Gou wanted to raise the minimum salary to 4,000 yuan (£401) – to put it in line with the wage structure at its Taiwan plants.

If true, the increase would represent the fourth wage increase at Foxconn since 2010 and a whopping 144 per cent increase on the current minimum wage of 1800 yuan (£180).

It isn’t clear, however, whether Gou was referring to the absolute entry-level pay or that of workers who have passed certain technical exams and currently get a slightly higher 2,200 yuan (£220).

Either way, Foxconn and parent company Hon Hai Precision Industry, would seem to be getting the message, after numerous reports criticising wages and working practices at its Chinese plans which make kit for Apple, Dell, HP, Nokia and others.

The world’s largest component maker has come under intense media scrutiny after reports of bullying by management, exploitation of under-aged workers and employee suicides and was exposed by a damning Fair Labor Association report.

Despite raising the wage of its workers several times, critics argue that after living costs including food and lodgings are deducted, staff barely have enough to live on and are forced to agree to excessive overtime just to make ends meet.

Gou’s reported remarks could be an attempt to head off any rises demanded by the FLA, which said that as part of the report it is conducting a cost of living study to make sure that workers’ salaries meet its requirements for basic needs.

It may also be in response to pressure from the Chinese government, which has made it its mission to improve the lot of workers over the next five to ten years.

The most recent five year plan, for example, says that firms must increase wages by at least 13 per cent every year, while in certain areas the local government may order much higher rises.

It will no doubt also spark fears that the increased labour costs, if passed onto Foxconn’s clients, could force them to put up the price of their products.

HP and Dell have already voiced their concerns, although despite the tight margins often involved, wage bills still comprise a small percentage of the final cost of an end product. ®

Application security programs and practises

More from The Register

next story
Microsoft's MCSE and MCSD will become HARDER to win
Redmond decides it won't replace Masters certifications, so lesser certs get more rigour
Pinterest diversity stats: Also pale and male (but not as much as Twitter)
Cats'n'flowers site latest to admit white men rule its roost
'Oh my god – Mark Zuckerberg wants to meet me'
'The Swiss have got no great interest in working with Apple'
Dammit, Foxconn: Where's our 1 MILLION-strong robot ARMY?
'Foxbots' just aren't good enough to take up the slack
Devs: Fancy a job teaching Siri to speak the Queen's English?
Spik propa lyk dis blud innit, ya get me?
Bankers bid to use offshore temp techies
WikiLeaks publishes Financial Services Annex to 50-nation Trade in Services Agreement
Hey! Where! are! the! white! women! at!? It's! Yahoo!
In non-tech jobs, that is – still mostly white men running Marissa Mayer's web biz
Non-techies: The cute things they say
'OK, smartass, the firewall is blocking the proxy server.'
Join me, Reg readers, and help me UPGRADE our CHILDREN
Think of the children? I just did, says Dom Connor
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.