“Apple Inc.’s supplier Hon Hai Precision Industry Co. plans to raise wages for its employees in Taiwan ‘significantly’ from July, to attract and retain talent for its expanding business, a company spokesman said Thursday,” Lorraine Luk reports for Dow Jones Newswires.
“Hon Hai is still deciding on the size of the salary increase in Taiwan, said spokesman Simon Hsing,” Luk reports. “Hon Hai has some 10,000 employees in its headquarters in Taiwan, with most of them focusing on research and development, marketing and business planning, he said.”
Luk reports, “The world’s biggest contract electronics manufacturer by revenue had raised the basic salaries of all assembly line workers in China since Feb. 1. It employs more than 1 million people in China, over 400,000 of them in Shenzhen.”
Read more in the full article here.
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Apple supplier Foxconn again lifts pay for China workers; 16-25 percent increase – February 17, 2012
FLA President: Foxconn factories ‘first-class; way, way above average’ – February 15, 2012
Thousands line up for iPhone assembly jobs at Foxconn’s Zhengzhou, China plant – January 30, 2012
For those who don’t know, Hon Hai = Foxconn
Did not know that – is it true?
Yes, that’s why I said it.
https://en.wikipedia.org/wiki/Foxconn
Yes, because Apple still holds to its contractual agreement to let Samsung assemble iDevices.
Apple has visited China to increase wages so it makes sense Korean wants to pay its employees more too. Word is out.
I love Calvin & Hobbes!
Anyone realize what ELSE is happening with these pay raises?
1. Higher prices in one place will cause worker demand of higher prices in other factories.
2. Higher Prices in other factories will mean higher prices on the products of the plethora of other US (and Korea and China) products. (Hear that Dell, HP, Others?)
3. Apple is already making a great profit, so it won’t effect them.
4. The higher prices for marginalized companies will put them out of their misery!
Unlikely there is any strategy behind this, but those consequences could occur.
Aren’t Americans complaining that money is going to Chinese companies, so now even more profits will stay overseas.
Is this an unintended consequence of raising worker conditions?!