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Foxconn Offers Performance-based Pay Raise of 66 Percent

Foxconn Offers Performance-based Pay Raise of 66 Percent

Photo: altemark/Flickr (CC)

Shane McGlaun

June 07, 2010

Foxconn is the company that manufactures some of the most popular gadgets on the market including the Apple iPhone and the iPad. Over the last several months, Foxconn has seen an uptick in suicides among its workers that have led to concerns over conditions at the factory.

 reported earlier this month that one worker at the Foxconn factory described life as “meaningless” and “very tough” at the factory. In an attempt to provide better pay and working conditions for workers at the factory, Apple cut its own profits by 0.7 percent to give the workers at the factory a raise of about 30 percent. After the raise, the workers at the factory made a meager $172 a month.

Foxconn has announced that it is now offering its workers up to a 66 percent increase in pay if they can pass a performance evaluation. The pay raise would require a three-month evaluation and if the worker passes, they would get the raise to 2,000 yuan per month. The 2,000 yuan monthly pay works out to about $293 here in the United States.

Foxconn founder and chairman Terry Gou said, “This wage increase has been instituted to safeguard the dignity of workers, accelerate economic transformation, support Foxconn’s long-term objective of continued evolution from a manufacturing leader to a technology leader, and to rally and sustain the best of our workforce.”

He continued saying, “We are working diligently to ensure that our workplace standards and remuneration not only continue to meet the rapidly changing needs of our employees, but that they are best in class.”

Reuters reports that so far this year ten workers at the Foxconn factory in Longhua, China have killed themselves. All of the ten workers were reportedly migrant workers that left the poor areas of China to find work.

_© 2009, DailyTech.

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