Affiliate Disclosure
If you buy through our links, we may get a commission. Read our ethics policy.

Foxconn denies Apple boosted employee pay following suicides

Apple is not directly compensating Foxconn workers, an executive with the overseas manufacturing partner said this week, denying a rumor that first formed last month as a number of suicides gained public attention.

Foxconn officially denied that the Mac maker is paying employees a 2 percent subsidy on labor costs, according to Taiwanese industry publication DigiTimes. An executive from Foxconn said that the rumor was just speculation, and his company has never received any subsidies from Apple.

That refutes a report issued in early June, which alleged that Apple was directly providing raises to Foxconn employees after a number of suicides occurred at the company's massive factory in Shenzhen, China.

Apple Chief Executive Steve Jobs spoke on the Foxconn issue last month at the All Things D Conference. He said that his company was "on top of" the matter, and that Foxconn "is not a sweatshop."

"It's a factory, but my gosh, they have restaurants and movie theaters, but it's a factory," Jobs said. "But they've had some suicides and attempted suicides, and they have 400,000 people there, The rate is under what the U.S. rate is, but it's still troubling."

The company did reveal in May that it will give a 20 percent pay raise to its employees. 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.



9 Comments

brucep 17 Years · 2800 comments

EDIT
sad about the suicides
not fox comms fault
AI should stop this yellow writing

9

SpamSandwich 19 Years · 32917 comments

Because eveyone knows that a pay raise is the cure for suicidal tendencies. Coulda used that information prior to 9/11...

jblongz 14 Years · 170 comments

$131 a month? I'd starve on that salary. I though I was starving at $4800/mo . I really can't complain

ascii 19 Years · 5930 comments

I feel so sorry when I see the photos of Chinese ladies assembling computers etc.

Intellectually I know that factory jobs are the historically proven way to move an economy from rural to service-based. UK and US had factory towns like Foxconn in the 17/1800s. So I am lucky in that my ancestors went through this so I don't have to.

But non-intellectually, on a personal level, if I had to assemble electronics all day every day, I would probably consider suicide too. For me, boredom is worse than physical pain in many ways.

sheff 15 Years · 1407 comments

Quote:
Originally Posted by ascii

I feel so sorry when I see the photos of Chinese ladies assembling computers etc.

Intellectually I know that factory jobs are the historically proven way to move an economy from rural to service-based. UK and US had factory towns like Foxconn in the 17/1800s. So I am lucky in that my ancestors went through this so I don't have to.

But non-intellectually, on a personal level, if I had to assemble electronics all day every day, I would probably consider suicide too. For me, boredom is worse than physical pain in many ways.

They have both boredom AND physical pain. Factory work is insane, though I guess assembling iPhones is at least less toxic then making metal or chemical manufacturing and probably less boring. I think it's a little better then farming in my view, especially if you don't have a tractor.

Also if apple is not paying more how can FOXXCON afford to pay 20% more? Surely the owners are not gonna take a pay cut.