Foxconn has said it will continue to increase salaries and reduce working hours in China following a damning report into conditions in its factories making goods for Apple.
As part of its efforts to relieve the pressure on its existing factories in Chinese cities such as Shenzhen and Chengdu, Foxconn last week said it would cut hours but keep pay the same.
We have a saying now in the company: ‘You work fewer hours, but get more pay’
“We have a saying now in the company: ‘You work fewer hours, but get more pay’,” Foxconn chairman Terry Gou said. “We won’t stop here and will continue to increase salaries.”
The company will also expand its operations, building high-tech manufacturing facilities in Hainan, as well as expanding operations in Brazil.
“Salaries in Brazil are even higher, but we will continue with our investments there. We’ve just entered a deal with Hainan Airlines and they will eventually be our way of connecting our supply chain (from China to Brazil).”
The 61-year-old Taiwanese tycoon said Foxconn would lift workers’ overall salaries after some employees at its sprawling factories in Shenzhen had complained that they would not make enough money if hours were reduced.
Apple and Foxconn agreed last week to improve conditions among the 1.2 million workers assembling iPhones and iPads in a landmark decision that could change the way electronics companies do business in China.
According to the agreement reached with Apple, Foxconn will hire tens of thousands of new workers, eliminate illegal overtime, improve safety protocols and upgrade housing and other amenities.
The move is in response to the independent Fair Labor Association’s findings of violations of labor laws by Foxconn, such as letting long work hours and unpaid overtime.
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