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China Manufacturer to Raise Pay 30 Percent

China Manufacturer to Raise Pay 30 Percent

Foxconn, the giant electronics manufacturer that has been in the spotlight for a series of suicides at its plant in southern China, plans to increase wages by 30 percent, reports PCWorld.com.

Though the 11 suicides and two attempts among its workers have focused world attention on the company, it attributes the raises to an uptick in demand for its products, not a reaction to the deaths. Foxconn’s electronics are used in the iPhone and most other consumer gadgets worldwide.

A Reuters story says the company has been contemplating raising wages for months as a means to retain workers in the area. Japan’s Honda Motor plant nearby recently raised wages by 24 percent. The story says Foxconn plans to make up the costs by increasing export volumes, though moving the work to even less expensive areas might also be considered.

Meanwhile, Apple CEO Steve Jobs touched on the issue Tuesday at the All Things Digital conference in California, saying the plant is “not a sweatshop.” He’s quoted as saying:

It’s a difficult situation. We’re trying to understand right now, before we go in and say we know the solution.

Meanwhile, the company keeps pointing out that the suicide rate among its workers falls below China’s national average.

[Thanks: http://www.itbusinessedge.com]

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