Mood:
happyNow Playing: Due to an increase in suicides, Foxconn manufacturing increases wages
Topic: CORPORATE CRAP
Foxconn increases wages from 30 to 67%
http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=225700209
(original full article)
Mark LaPedus
Page 1 of 2
EE Times
(06/15/2010 2:20 PM EDT)
SAN JOSE, Calif. -- Lately, it's been a tumultuous period for Taiwan's Hon Hai Precision Industry Co. Ltd. Hon Hai, the world's largest contract electronics manufacturer (CEM), trades as Foxconn and makes electronic products for such brands as Apple, Dell, Hewlett-Packard and Sony. As reported, Foxconn International Holdings Ltd. (FIH) recently announced it will more than double the salaries of employees at its factory in Shenzhen, China within months in response to a global outcry over recent worker suicides at the site. Now, there are unconfirmed reports that FIH may re-locate some operations in Shenzhen to lower cost regions in China. Here's what analysts are saying about Foxconn's troubles:
Impact of salary hikes for Foxconn
Jamie Wang, an analyst with Gartner, said: ''This wage hike may increase Foxconn's operational costs and affect its profitability, but the company cannot afford further tragic suicides, and this action will improve relations with its workers in China and help to deflect potential negativity from its outsourcing clients.
''For now, Foxconn needs to concentrate on handling recent events sensitively, which will affect its cost competitiveness in the short term. However, a continuous focus on improving quality and productivity will be recognized by Foxconn's OEM customers over the long term.''
... was raising pay for its production workers by 30 percent (from RMB900 to RMB1200) effective June 1, the company announced further significant pay hikes of 67 percent ...
