Apple partner Foxconn raises Chinese worker wages as much as 25%

Posted:
in General Discussion edited January 2014


As Apple has faced criticism for its alliance with manufacturing partner Foxconn, the device assembler announced on Friday it has raised the wages of its workers by 16 to 25 percent.



The pay of a junior-level worker at its Shenzhen plant in China grew to 1,800 yuan per month, and could even go beyond 2,200 yuan if the worker passes a technical examination, according to Reuters. That's significantly up from the pay of 900 yuan from three years ago.



Foxconn's pay increase should go even further to calm concerns over wages and working conditions at the factories, which assemble iPhones and iPads along with electronic devices from many other device makers.



The announcement from Foxconn comes only days after the Fair Labor Association began inspecting its facilities as part of an independent audit requested by Apple. The FLA said after its initial visit that Foxconn's iPad manufacturing plant is "first class," with conditions far better than garment factories in China.



Foxconn last boosted employee wages in June 2010 following a rash of suicides that occurred at the company's massive mega-factory in Shenzhen. The manufacturer said Friday that the basic salary of its junior workers is already "far higher than the minimum wage."



"We will provide more training opportunities and learning time, and will continuously enhance technology, efficiency and salary, so as to set a good example for the Chinese manufacturing industry," the company said in a statement.











Foxconn and Apple have come under great scrutiny since stories from The New York Times and CNN highlighted purported labor issues in Apple's supply chain. The Times article suggested that Apple has known about those issues in its supply factories for years without requiring that they be addressed, but Apple Chief Executive Tim Cook shot back in an e-mail to employees, calling those claims "patently false and offensive."



Apple announced in January that it had joined the Fair Labor Association, becoming first technology company to do so. Its participation in the FLA means that Apple agrees to have the association independently assess facilities in its supply chain and report detailed findings on its website.



[ View article on AppleInsider ]

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Comments

  • slurpyslurpy Posts: 4,608member
    In before $0.00/hr+ 25% is still $0.00/hr LOLOLOL



    Seriously, good to hear.
  • rednivalrednival Posts: 329member
    It is about time.



    Since our Congress won't do anything about the Chinese it is good to see Apple finally taking a stand and putting some screws to Foxconn, even if it is in the face of public scrutiny. I guess CNN and New York Time deserve credit for bringing this to the public's attention.



    And by the way, Apple knew. Avoiding the truth when you wouldn't like it is the same as knowing the truth and doing nothing about it, if you ask me.
  • brainwashedbrainwashed Posts: 5member
    1,800 yuan per month = 285.77 USD per month....



    Ah yeah! I am rolling large now.
  • al_bundyal_bundy Posts: 1,525member
    sucks to be an android phone maker now



    apple is raising their costs with this
  • irelandireland Posts: 16,073member
    Once again Apple changes things. I'm serious here. They could have ignored this and those iDevices would still sell, their policies and determination in this area is changing how Chinese manufacturing works, that's so small feat. I'm glad they didn't simply throw money at the problem either, because ultimately it's not Apple's fault China is the way it is.
  • tontontonton Posts: 14,064member
    Quote:
    Originally Posted by Brainwashed View Post


    1,800 yuan per month = 285.77 USD per month....



    Ah yeah! I am rolling large now.



    Plus free room and board, medical, counseling...



    And even outside of the factory, a bowl of noodles costs USD$0.25.



    And the other locals not working at Foxconn? Some of them subsist, working full time, on about $100. And they don't starve either.
  • irelandireland Posts: 16,073member
    Quote:
    Originally Posted by Brainwashed View Post


    1,800 yuan per month = 285.77 USD per month....



    Ah yeah! I am rolling large now.



    It's relative though.
  • irelandireland Posts: 16,073member
    Quote:
    Originally Posted by rednival View Post


    It is about time.



    Since our Congress won't do anything about the Chinese it is good to see Apple finally taking a stand and putting some screws to Foxconn, even if it is in the face of public scrutiny. I guess CNN and New York Time deserve credit for bringing this to the public's attention.



    The US Congress has no business telling China how much they should or shouldn't pay their workers. It's a moral issue, not a political one, and it's certainly not one more excuse for the US to police the world. Do yourself a favour and quit reading the NYT and watching CNN. It'll clear your head out.
  • beakernx01beakernx01 Posts: 56member
    Let's see how many of the news outlets that jumped all over Apple for practices that are the same or, more often are much worse at other manufacturers working for Dell, IBM, Acer, Toshiba, Samsung, M$, etc. rush to report this.
  • island hermitisland hermit Posts: 6,217member
    Quote:
    Originally Posted by al_bundy View Post


    sucks to be an android phone maker now



    apple is raising their costs with this



    Just to clarify... Apple does not equal Foxconn.



    Other companies also use Foxconn for manufacturing their goods. Some of which could very well make Android devices.
  • solipsismxsolipsismx Posts: 19,566member
    So a 50% raise in 2010 and now a 16-25% raise 1.5 years later. So was Foxconn paying their employees wagers on par with the industry during any of those times? Are they well above the average now for China? Does that 1800 yuan get taxed? Is that profit or do they then have to pay room and board out of it? From what I've seen Foxconn runs on razor thin margins.
  • macvictamacvicta Posts: 346member
    Quote:
    Originally Posted by island hermit View Post


    Just to clarify... Apple does not equal Foxconn.



    Other companies also use Foxconn for manufacturing their goods. Some of which could very well make Android devices.



    I think that was his point. Apple can afford to take the hit in rising costs. Meanwhile they're already struggling to make a profit.
  • tallest skiltallest skil Posts: 40,857member
    This was done because of all the hard work and dedication of the people who signed their names on Internet petitions.



    Pat yourselves on the backs, folks; Apple would never have done this without you.



    Three Stooges-esque "Why I oughtta" wind up as I say this.
  • island hermitisland hermit Posts: 6,217member
    Quote:
    Originally Posted by MacVicta View Post


    I think that was his point. Apple can afford to take the hit in rising costs. Meanwhile they're already struggling to make a profit.



    Is it Apple that's raising their costs, though, or is this an initiative from Foxconn. (that's a rhetorical question)
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by MacVicta View Post


    I think that was his point. Apple can afford to take the hit in rising costs. Meanwhile they're already struggling to make a profit.



    So is this a wag increase just for Foxconn employees working on Apple products or a raise increase for all workers? Who is flipping the bill here? Is Apple paying for Xbox employees?
  • Quote:
    Originally Posted by AppleInsider View Post




    The pay of a junior-level worker at its Shenzhen plant in China grew to 1,800 yuan per month, and could even go beyond 2,200 yuan if the worker passes a technical examination, according to Reuters. That's significantly up from the pay of 900 yuan from three years ago.








    Thank you, New York Times!



    The pen is mightier than the sword.
  • jce10jce10 Posts: 33member
    Quote:
    Originally Posted by Ireland View Post


    The US Congress has no business telling China how much they should or shouldn't pay their workers. It's a moral issue, not a political one, and it's certainly not one more excuse for the US to police the world. Do yourself a favour and quit reading the NYT and watching CNN. It'll clear your head out.



    It's not even a moral issue; it's economics. We already know Foxconn is testing waters in Brazil. When the manufacturing cost rises in China, what will Foxconn do? It might as well move some of its production to Brazil, and thousands will lose jobs at the "highly paid" ShenZhen plant.
  • brainwashedbrainwashed Posts: 5member
    Quote:
    Originally Posted by tonton View Post


    And they don't starve either.



    Really? Your definition of doing well is... "Hey, at least they are not starving to death"



    I see your point. They can afford that bowl of rice. What is there to complain about?



    Tell them get back to work, they can take a break after their 16 hour shift. I have electronics to buy!
  • Quote:
    Originally Posted by al_bundy View Post


    sucks to be an android phone maker now



    apple is raising their costs with this



    Good point. Apple will barely feel any margin squeeze, but the companies who trade on razor thin profits will need to reevaluate products on the margin.
  • wigginwiggin Posts: 2,196member
    Quote:
    Originally Posted by Brainwashed View Post


    1,800 yuan per month = 285.77 USD per month....



    Ah yeah! I am rolling large now.



    As Ireland and others have pointed out, it's all relative. If food, housing, medical, retirement, etc, are all covered, and taking into account the cost of living differences for everything else that may not be a bad wage.



    And remember, not every culture and every country in the world is as obsessed as we are with having 2 or 3 cars for every family, huge houses with a bedroom for every kid, $5 cups of coffee, luxury vacations, etc.
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