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Electronics Giant Foxconn Increases Wages and Reduces Overtime

Electronic Giant Increases Wages and Reduces OvertimeFoxconn Technology announced yesterday that they have increased wages of their assembly line workers by 15 to 25 percent. The wage increase was the third such raise to happen since 2010.

For workers that are based in Shenzhen, the increase will bring basic salaries to 1,800 yuan for probationary employees and a 2,200 yuan for those in the non-probationary status which account for 95 percent of  Foxconn employees. The wage hike given by Foxconn is also higher than Shenzhen’s minimum wage of 1,500 yuan that was also increased and put in place on February 1.

The company also plans to reduce overtime and to institute training programs. Reduced overtime allows interns to work and earn the same amount or more, without the need for doing overtime.

Although the pressure of inflation is always in the air, with wages increasing quicker than profit,  Foxconn is a large company and by improving management and quality the company expects to cope with the wage hikes, increased materials costs and other inflation-driven aspects of their supply chain. An obvious advantage of increased wages is that the company can retain good workers, thus saving time in recruiting new ones. This is not to mention the positive impact it will have on the way the company is viewed in the eyes of the end-users of their clients’ products, and quell calls for boycotting products produced by the company.

Other factories in Shenzhen are facing labor shortages, but due to Foxconn’s high wages and a transparent welfare system, job applicants are lining up to work for the company.

Foxconn is one of the largest electronic manufacturing companies in the world that supplies several big name companies such as Dell, Sony, Microsoft and Cupertino-based Apple.



2 Comments for “Electronics Giant Foxconn Increases Wages and Reduces Overtime”

  1. “job applicants are lining up to work for the company”

    Very interesting. Western newspapers are full of horror stories, but the workers are not locked up, they are free to leave and work elsewhere, and there are plenty of jobs as you have reported.

    I have emailed links to your web pages to anti-Apple campaigners in UK, but received no reply from them.

    • I would be interested to hear what they had to say. Doesn’t “lining up to work” denote that there aren’t that many jobs to be had?

      I wonder how many of the anti-Apple campaigners have actually visited Foxconn or any other Chinese factory.

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