“The move, aimed at containing costs, follows drastic wage rises for large parts of the workforce of the Taiwanese-owned company, after a string of worker suicides and widening labour unrest,” Hille reports.
“Apple is Foxconn’s biggest customer,” Hille reports. “Any move by Foxconn will add to momentum to the gradual diversification of global technology production away from a handful of locations in southern China and around Shanghai.”
“Executives close to the annual negotiations between the two companies over next year’s orders said Foxconn’s demands to pass on some higher labour costs had not been met favourably by Apple,” Hille reports. “‘But Apple is more ready now to use some of the new locations,’ one executive said.”
Read more in the full article here.
What’s up with the markets today? Consumer confidence index went way down. Thanks for ruining America, Obama!
@Tom Strong
Of course its his fault Tom. By the way, what has Apple stock done since he’s been in office?
This is a hiccup in the recovery of the meltdown that started under Bushy’s watch you twat.
Looks like good old capitalism is working well in China. If local workers can’t work for less, there’s others who can.
The whole ‘string of suicides’ situation is more than meets the eye. From what I gather (and someone, correct me if I’m wrong), Foxconn’s factory jobs are sought after by locals because of the package of benefits they contain, one among them being a beefy life insurance policy. Looks like these insurance policies have been the single most significant driving factor in those suicides (where family collects and lives happily ever after, honouring yearly their kin who gave the ultimate sacrifice). Driving up wages helps a little (poor families are somewhat less poor), but as long as that fat life insurance policy is in the package, suicides will likely continue to exist (until someone removes suicide as an allowable cause of death for the collection on that policy).
Cheaper labour elsewhere in China might eventually also catch on with respect to this life insurance perk. Something will have to be eventually done, though, in order to prevent these suicides, and it doesn’t seem to be all that complicated.
One thing is obvious; doubling the wages wasn’t all that smart of a move. It may have reduced the frequency of those suicides, but ultimately, it drove the jobs away to other places.
Don’t care about his positive or negative effects on the economy but can someone please edit out those mind numbingly annoying pregnant pauses in almost every sentence he puts together. There really is only so much slobbering on his every word that even the easily impressed can accommodate without becoming brain dead.
If they added 50 cents to the cost of each iPad, it would cover every raise in the company for those workers for 20 years. They really need to shift? I cry bullshit.
Can’t we at least avoid debating politics in the stories that don’t even reference them?
@ Me in LA–
That’s 50 cents per hour.
You know what I’d like to see? I’d like to see Apple bring device manufacturing back to the US. Probably and sadly impossible given the economics of it all, but wouldn’t it be awesome if iPhones intended for US customers were made in, oh I don’t know…how about West Virginia? That state could use a little pick-me-up.
Why don’t you say something nice instead of being a smartass all the time?
@ hairdo,
“Bring device manufacturing back to the USA for iPhones sold in the USA”
Would you Americans actually pay between 5 to 10 times more than everyone else in the world just to have a Made in USA sticker on your iPhone?
@Tom Strong…stop looking inward. America and Canada are hurting because of countries like Greece. I do not like my own head of state BUT there are world forces at work here.
@singidunum
The suicide rate for Foxconn was less than 10 per 100,000 which is significantly less that than China’s national average of 14 per 100,000 or the US’s 18 per 100,000.
or the 10.7 per 100,000 US female college students who attempted to commit suicide.
@artist. Why do ‘Artists’ believe they should be socialists? I’m an artist and I’m a old-time conservative, having once lived in a socialist country. That’s where this loon in power is taking the US.
@Buster. Lower taxes and stop spending what you don’t have – easy!
The world forces have been living high on the hog with their early retirements and short work weeks, etc, etc, etc.
@ron
I’m not a socialist Ron. Quit typecasting.
I’d gladly pay more for my next MacBook Pro, iPad, iPod or iPhone (I have previous versions of each) if they would just MAKE THEM IN THE US. I mean, honestly, with the degree of automation in fabricating consumer electronics – how much does the cost of labor really add to a product? I suppose your typical Wal-Mart shopper could be sensitive, but I’d pay $50 more to keep (or in this case, create) jobs in the US.
Where is Foxconn “shifting” it to? Further away from prying eyes of Apple or undercover press? Back to the whip?! I wonder how much will those wage increases be really worth?
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Let’s not forget that just about every major computer manufacturer uses FoxConn for at least some of their products. Of course, the mainstream media never mentions this because the hit whores know that they won’t get the same kind of traffic, so they continue to trot out Apple’s name.
@dpp
“I’d pay $50 more to keep (or in this case, create) jobs in the US”
Bull shit. Look in your garage, your house, you work place.
Check the shirt off your back, the videos your kids are pirating, the sports equipment/paraphernalia your kids are playing with or wearing, and all the other electronics in your home or your hand.
America, more than any other country in the world enjoys more luxuries because of the efforts of third world developing countries.
Imagine for a moment if we took all the production and brought it states side and what would happen if we couldn’t pay sports figures, movie stars, media personalities, rappers, etc., millions and millions of dollars to placate our thirst for pleasure.
I am with hairbo and dpp… I want to see apple products Made in USA! That would create more jobs in USA across several states.
With the BP debacle, I find it the remarks about the U.S. and socialism increasingly funny. It’s not apparent that corporations and their lobbyists have control of the Federal government? How do people connect these overly greedy entities with the idea of “giving things away”? You want privatization? – they’re already doing it and have no intention of stopping. You used to get TV completely free (ads paid for it) but you demanded better and they had a pay plan for you. And you’re getting your money’s worth, right? No complaints about service or selection? Same with broadband and cell service – everything’s peachy keen, eh? The powers that be are keeping you at each others throat while they usurp control. George Orwell hit the nail on the head with “Animal Farm” but people only remember “1984”.
Oh, and Mr. Jobs, if you read these sites, how about continue your lead in corporate America and bring the jobs home. Maybe the others will learn something from you. Then we can discuss your run for President.
@ MDmac,
Horseshit. It might sting for a while, but when people see their neighbors working again, and houses NOT sitting empty, the cutback of luxury item purchases will be OK with most Americans.
As it stands, we have NO CHOICE today. Damn near everything is made outside of the USA. Thank out government and CEOs for that bullshit.
Me, I’ll go back to a simpler time where I had to save up for things. I HAVE done that in the last two years. I have gotten rid of all but one credit card (for car rentals, vacations, etc.) and use cash now. I am treated like a freak, but fugg ’em. I’m no longer dragging a ton of debt behind me.
I vote yes for bringing production back to the USA. Which reminds me – where the fuck are the UNIONS here? protecting workers? My ASS!
Apple should buy Foxconn.
ah, I understand this news better : 177.- US$ a month, 11 hours a day, 6 days a week (who cares ? who make controls?). Don’t be afraid fellow american workers, chinese workers are not ready to visit NY’s Statue of Liberty for the decades to come with such wages ! Shame ! Centuries ago, they moved slaved, sorry, workers from Africa to America, now they move labour to where workers are leaving…
Read
Foxconn plans central China factory with 300,000 workers
http://www.chinapost.com.tw/business/company-focus/2010/06/29/262620/Foxconn-plans.htm