Items tagged with wages

After being put under the microscope by the media and, more recently, by its customers following a rash of suicides that occurred at its Shenzhen, China factory, Foxconn said it is issuing another round of significant pay raises, the second time that this has been done this week. According to a report in The New York Times, Foxconn plans to raise basic salaries for most of its 800,000 workers in China to nearly $300 a month within the next 90 days. That's about double what the workers were making just a couple of weeks ago, and also is indicative of rising labor costs in China's biggest manufacturing... Read more...
Foxconn thinks they have a solution to the mounting suicides that have rocked the company's China operations: pay the workers more money. According to reports, Foxconn plans to raise wages by 30 percent, which still isn't all that much, but it's a start. One report has the basic salary at Foxconn's China plants at about 900 yuan a month, or just over $130. Speaking on condition of anonymity, an unauthorized Foxconn spokesman told the Associated Press that the pay raise is designed to reduce overtime and give workers "more time for leisure and have a happier working environment. It may also help... Read more...
In 2006 IBM settled a lawsuit brought by employees claiming they were denied overtime pay for some $65 million.  It appears that IBM is attempting to punish those same workers by cutting their base salary by 15 percent.“IBM spokesman Fred McNeese said the move would not save the company any money, because the affected employees generally should find that overtime pay makes up for the salary cut.However, internal documents obtained by The Associated Press indicate that many workers will lose money.”It wouldn't be a surprise if there was another lawsuit brewing as a result of the pay cut.... Read more...