Foxconn Hands Out More Raises

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News Posted: Tue, Jun 8 2010 12:52 PM
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 hubs.



Lost in the shuffle of all the suicides that have taken place, market analysts say that China's booming economy has led to a labor shortage, in turn creating competition for young workers in the manufacturing sector. As a result, it's possible that prices for everything from textiles to electronic components could go up.

"These moves are symbolic and significant," says Dong Tao, a Hong Kong-based economist at Credit Suisse. "The outcome is simple: manufacturers either improve productivity, shrink their margins, or pass the costs on to consumers."

Not all manufacturers are jumping on board with pay increases, however. According to news and rumor site DigiTimes, notebook makers Compal Electronics and Wistron said they would not be following in Foxconn's footsteps.
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Does a Foxxconn raise mean more floors to jump from?

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JoelB replied on Tue, Jun 8 2010 5:57 PM

No, I think it means another reason why certain companies will try to justify price increases on already-price-gouging prices. (Thinking of ink cartridges, toner cartridges, etc.). I really question how much of that money will make it to the pocket of the average worker.

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In China!? I am sure a hundred percent will make it to them, and they would probably get another 200% raise in a month! :)

Since all that money goes to the government it really doesnt matter how much they pay them.  the state workers pay the state, get taxed by the state, then must go back to work for the state! Kinda like our current administration :P

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I hope 30% more pay will keep peple from killing themselves. Something seem deeply wrong with this whole investigation.

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AKwyn replied on Fri, Jun 11 2010 11:15 AM

At least the people will have an easier time trying to get the money they need. Low wages and overworking is not the way they should so things, it feels like a sweatshop only they're trying to make a living by earning a megar salary so they can support their family and themselves, well with the raises it'll feel less like a sweatshop. Not a lot but less.

 

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