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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."

3 of 284 comments (clear)

  1. Re:Well this sucks!!!! by aristotle-dude · · Score: 3, Interesting

    Now Apple will jack up the price on iPads by 20%!

    It would raise the cost to Apple by .7 percent per iPad. I think that Apple intends on eating that difference rather than passing it on to the consumer.

    --
    Jesus was a compassionate social conservative who called individuals to sin no more.
  2. Re:Well this sucks!!!! by 0100010001010011 · · Score: 3, Interesting

    Isn't the suicide rate for FoxConn employees somewhat less than the population of China as a whole?

    Getting a job at FoxConn would actually reduce your tendency to commit suicide.

  3. Just for the record... by jcr · · Score: 3, Interesting

    The suicide rate among foxconn workers is not only lower than for the population of China in general, but also lower than every US state. Every suicide is a tragic event, but I'm not buying the contention that their jobs are driving them to do it.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."