Bloomberg News

Foxconn Group Raises China Wages for Third Time Since 2010

February 19, 2012

Feb. 18 (Bloomberg) -- Foxconn Technology Group, the world’s biggest contract manufacturer of electronics including Apple Inc.’s iPhone, raised the pay of its workers in China this month, the third increase since 2010.

Pay rose by 16 percent to 25 percent starting Feb. 1, the company said in an e-mailed statement yesterday. The basic monthly pay of a junior worker in Shenzhen has risen to 1,800 yuan ($290) from 900 yuan three years ago, it said. Foxconn will raise monthly salaries to more than 2,200 yuan for workers who pass technical examinations, it said.

The announcement came after Apple said the Fair Labor Association started its audit of Foxconn’s plants in China this week. Apple became the first technology company to join the Washington-based work-standards group last month, after criticism by human-rights organizations over conditions at suppliers including Foxconn.

The Fair Labor Association will interview thousands of employees about working and living conditions, including health and safety, compensation, hours and communication with management, Cupertino, California-based Apple said this week.

The basic salary of junior workers in Foxconn’s China factories is already far higher than the minimum wage set by all local governments, Foxconn said in yesterday’s statement.

Foxconn more than doubled wages for some workers in China and employed counselors two years ago after a spate of suicides at the company. Last year, an explosion at its Chengdu plant killed three workers.

Shares of Foxconn’s Taipei-listed flagship Hon Hai Precision Industry Co., fell 0.5 percent to NT$101.50 yesterday. The shares have gained 22 percent this year, compared with a 12 percent gain in the benchmark Taiex index.

Hon Hai assembles iPads and iPhones, unit Foxconn Technology Co. makes metal cases for those two devices as well as Apple’s laptop computers, and affiliate Chimei Innolux Corp. supplies displays for the iPad.

Foxconn employs about 1 million people in China, with four locations.

--Editors: Joshua Fellman, John Lear

To contact the reporters on this story: Adela Lin in Taipei at alin95@bloomberg.net; Janet Ong in Taipei at jong3@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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