Monday, June 7, 2010

Foxconn offers third pay rise

HONG KONG: Foxconn on Sunday, June 6 announced a third pay rise in less than 10 days, offering its production line and senior workers in Shenzhen a performance-based monthly increase of 800 yuan, or more than 65%.

"The monthly wage for all first-line employees and their line leaders and supervisors in Shenzhen will be elevated to 2,000 yuan (HK$2,280) as early as Oct 1," the Taiwanese firm said Sunday night.

On May 29, after a series of employee suicides caused public concern over working conditions, the electronics manufacturer announced pay rises averaging 20% for 200,000 workers at its Shenzhen factories, insisting they were due to the improved economy. The basic salary at Foxconn's Shenzhen plants, which make iPhones and other popular gadgets, was then about 900 yuan a month.

Another pay rise was announced June 2, when the firm increased the minimum basic wage for production line workers by a further third to 1,200 yuan. Senior workers and shift supervisors, whose basic salary was already higher than 900 yuan, were given rises of 30%.

Sunday's pay rise was offered to workers who "successfully pass a performance evaluation lasting three months", the firm said, adding that details of the performance evaluation would be announced internally later.

New employees under a three-month probation will get a monthly salary of 1,200 yuan. If they pass the probation, they will be eligible for the increase to 2,000 yuan.

Foxconn also said it would give "further upward adjustments to salaries" for senior workers, including production line leaders and supervisors, before August 1.

For workers based in plants in other areas on the mainland, wage increases would be calculated "based on local consumer price indices and social security requirements", it said.

The latest pay rise was designed to "ensure that the Foxconn workforce has a stable and more comfortable base of income," the firm said.

"This wage increase will reduce overtime work as a personal necessity for some employees and make it a personal choice for many workers." The mainland's labour law prohibits forcing workers to work overtime.

Foxconn chairman Terry Gou was quoted as saying this wage increase was instituted to "safeguard the dignity of workers ... and to rally and sustain the best of our workforce". ' South China Morning Post


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