Sam OliverAccording to CBS-owned Chinese news site Zol.com.cn, Apple plans to provide Foxconn employees between 1 percent and 2 percent of the profits from its products. The report was translated by MIC Gadget.
The media outlet said that Apple conducted an investigation of Foxconn, as it publicly promised to do, and found that recent employee suicides were related to low wages at the company's massive factory in Shenzhen, China. The Cupertino, Calif., company could address the issue by providing additional wages to workers that would come directly from the profits of products assembled there.
The report claims that the first to receive the pay boost will be those who work on the iPad production line. Currently, it said, Apple pays Foxconn about 2.3 percent of the total price of the iPad.
Last week, Foxconn announced it plans to give a 20 percent pay raise to its employees. The revelation came after at least 10 people committed suicide at the Chinese plant this year alone.
Entry-level workers at the company's factory in Longhua reportedly earn just over 900 yuan, or $131.80 U.S. per month before overtime and bonuses. A recent undercover report from Southern Weekend revealed that employees sign "voluntary overtime affidavits" to take home more than the local minimum wage that can be earned through a regular 36-hour workweek.
Apple's own investigation into Foxconn was announced last week. The company said it is "saddened and upset" by the suicides that have occurred there recently, and it would assign its own investigative team to carry out an independent inquiry.
Apple, along with numerous other electronics makers, partners with Foxconn for the building of its products. The Taiwan-based company assembles iPhones and iPads for Apple. Last week, other technology giants, including Nokia, Sony, Dell and HP, joined in showing concern over the labor conditions at the Chinese factory.
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64 Comments
These overworked workers deserve every penny they can get. I think Apple should divert 2-5 percent of their annual profit to the well-being of these workers, some of whom are going to be permanently injured by the chemicals used to manufacture these profitable gadgets.
But then, you realize that the reason for moving these manufacturing is the first place is to maximize profit.
Will Apple help the Chinese workers? The jury is still out there.
I don't get something here - if
and the iPad price is $499 (for one model) does that mean Apple's cost of manufacturing each iPad is only $11.47? (not including shipping it around the world.
Or does that mean the gross profit that Foxconn makes is $11.47 per unit? I would be really surprised if the total cost of materials and manufacturing was only $11.47. unless that $11.47 does not include the materials cost. if the total cost of materials and manufacturing was more like $111.47 that would not surprise me. that is about 22% rather than 2.3% of the total. and a 20% increase on that is about $20. maybe the numbers are backwards - 20% of the total price is the direct charge from Foxconn to Apple for each unit shipped and the worker increase is 2.3%.
I don't get something here - if and the iPad price is $499 (for one model) does that mean Apple's cost of manufacturing each iPad is only $11.47? (not including shipping it around the world.
Or does that mean the gross profit that Foxconn makes is $11.47 per unit? I would be really surprised if the total cost of materials and manufacturing was only $11.47. unless that $11.47 does not include the materials cost. if the total cost of materials and manufacturing was more like $111.47 that would not surprise me. that is about 22% rather than 2.3% of the total. and a 20% increase on that is about $20. maybe the numbers are backwards - 20% of the total price is the direct charge from Foxconn to Apple for each unit shipped and the worker increase is 2.3%.
I think Foxconn just assembles the items. Other companies supply the parts.
Hopefully workers of other assembly lines (IBM, HP and so on) will survive this news...
Apple pay that $11.47 (or whatever) to Foxconn to assemble the iPad. I'd guess Apple are entirely responsible for sourcing the components and getting them to Foxconn's factories.