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Foxconn Workers Getting Raise With Apple Subsidies

hackingbear writes "Workers at Taiwanese electronic outsourcing manufacturer Foxconn are getting a pay raise after a series of 13 suicides, including three in three consecutive days. According to an article by state-run newspaper China Daily, Apple concluded that the main cause of the suicides is low wages. (The media has also attributed the suicides to a variety of other factors — everything from the semi-military style of management, to long overtime, to China's one-child policy, and Foxconn paying too much compensation to the family of suicide workers, thereby encouraging copycat suicides.) Apple plans to subsidize raises using its own products (Google translation; Chinese original here) — the first one being the iPad. This would raise the outsourcing cost from 2.3% to 3% of the iPad's sales price. The article does not say the amount of the raise per worker, but it is rumored to be about 20%, according to other Chinese news sources."

2 of 284 comments (clear)

  1. Re:Well this sucks!!!! by cgenman · · Score: 5, Informative

    For reference, other major brands who use Foxconn include:

    Intel
    Dell
    Zoostrom
    Sony
    Nintendo
    Microsoft (yes, all 3 major consoles come from Foxconn, at least partially)
    Motorola
    Amazon Kindle
    Cisco
    Hewlett-Packard
    ATI

    Most have issued statements regarding the number of suicides at the factory. But none other than Apple, as far as I'm aware, have taken steps this large and publically towards resolving the problem.

  2. Re:Apple-haters in 3,2,1,... by mooglez · · Score: 5, Informative

    Because despite the fact that FoxConn make stuff for all sorts of people in the consumer electronics world, all the bile and invective seems to fall on Apple's shoulders.

    No doubt, Apple actually trying to help will be seen negatively too - let's see if any of the subsequent comments say so (my money's on yes...). Honestly, the anyone-but-apple brigade make the fanboys look calm, collected, and sane.

    Simon

    In Finland, all these Foxconn suicides have been reported as happening at a "Nokia contractor", no word of Apple in any of the news posts.