Apple cuts iPad profit to give Foxconn factory workers big raise

Run Windows on Mac OS X with no reboot!“It took a string of suicides to spur it to action, but Apple is finally taking a big step towards trying to ensure that the workers who build its bestselling iPads, iPods, and iPhones enjoy a decent standard of living,” Jason Mick reports for DailyTech.

MacDailyNews Take: Apple’s largesse is even more praiseworthy considering that Foxconn’s suicide rate is lower than China’s average. Please see: Media blows it: Foxconn employees face significantly lower suicide risk – May 28, 2010

Mick continues, “Apple’s products are almost entirely manufactured by Foxconn, a China-based unit of Taiwan’s Hon Hai Precision Industry. Foxconn builds the sleek devices at its Shenzhen plant in Southern China. While many companies (Microsoft, HP, Dell, Nintendo, Sony, etc.) utilize Foxconn’s manufacturing services, the Shenzhen facility primarily serves Apple — and it’s also the site of all of the recent suicides.”

MacDailyNews Take: “All of the recent suicides” that are, again, below China’s average.

Mick continues, “According to a report by Chinese news organization Sina, Apple has now quietly committed a dramatic gesture, offering to finance the majority of the 20 percent raise in pay to the Shenzhen workers. The raise was long promised to workers, but had remained undelivered for some time now.”

“The raise will make a world of difference.,” Mick reports. “While some will question why Apple didn’t push for higher wages in the first place, it’s important to appreciate that it is at least taking action now. One can only hope that HP, Dell, Microsoft, and others step up to the plate and offer to subsidize similar raises at their manufacturing locations — even if they haven’t been struck by the spate of suicides that occurred at Apple’s plant.”

MacDailyNews Take: “The spate of suicides” that are, once again, below China’s average.

Full article here.

MacDailyNews Take: Beware what you read for most of it is horseshit. That said, if the pay raise aspect of the story is true, Apple proves once again to be a vastly different company than most. Apple is to be commended for this move. Our expectations are low for any of the other companies mentioned above to follow Apple’s lead this time.

51 Comments

  1. 1. Nintendo uses the same Shenzhen facility, that it why it started its own investigation;

    2. 20% increaso of salary was planned since last year and has NOTHING to do with suicides or the more so with Apple.

  2. 3. Shenzhen facility workers even with the salary like $130 get way more than millions of Chenese that get $50, producing cheap crap for Gateway or low cost Dell boxes, stuffed with chlorine plastics and other shit. (Dell uses Foxconn facilities for better quality models)

  3. Addition to point #3: and you can not even start to compare suicide rates in Foxconn to that of those third-rate factories, where people are slaves almost litterally.

    They work there since childhood, their work day is 16 hours, they have one day of vocation in month, they die of accidents in alkolines, chlorine, acid burns.

    But because media are not really focused on those facilities (Apple does not order manufacturing of its goods in those *real* plants from hell), no one bashes Dell or Gateway for that.

  4. The suicides have more to do with the culture, economy and overall quality of life of the individuals involved. Foxconn seems to have a reputation as an above average employer for the area. And in fact, the minimum wage in Shenzhen is the highest in China.

    When people are suicidal, wage hikes aren’t the answer. There are deeper problems.

  5. No matter how MDN spins this story – these farms turning out Apple’s “revolutionary” devices are an outrage. All of us who buy these products are contributing to the abuse in this ugly scene.

    “Designed in California” or whatever distraction they put on their products is an admission that Apple knows what’s going on in these Chinese sweat shops.

  6. This story is utter bullshit. Apple would never do such a stupid thing. Apple does not just step in and do a lib, asswipe leftist givaway ala Hussein The Kenyan.

  7. Paying workers fairly and treating them fairly is important to me. If anyone from Apple is lurking/reading: this good customer/shareholder will gladly pay more for products made in plants that pay a living wage and treat workers fairly.
    Finally, quite a few strikes are happening in China right now- most notably Honda.

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