Foxconn has confirmed another salary rise for staff on its Shenzhen production lines, following a spate of reported suicides among its workers.
The company said based on a recommendation by its controlling shareholder, Hon Hai, it had approved a proposal to further increase salaries of its staff on Shenzhen production lines, subject to a three-month work performance assessment. This follows Foxconn’s recent move to raise China staff salaries by 30% from 1 June.
The criteria for the performance assessment have yet to be decided, it said.
Hon Hai Precision Industry, the world’s biggest contract electronics manufacturer with a list of clients including Apple, Dell and HP, said that production line workers at Foxconn’s Shenzhen hub would be able to earn 2,000 yuan ($293) a month from October if they passed a three-month performance review.
The salary increase comes amid increased concern from Foxconn’s clients over treatment of the workers in its factories. Last week, Apple boss Steve Jobs said he found the reported suicides “troubling”, but declared that the factory “was not a sweatshop”.
The increase in operating costs due to the wage increase may impact the company’s results but could also be offset by increased revenue or cost reduction in other areas, Foxconn said in a filing to the Hong Kong stock exchange.
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