Foxconn gives workers second pay rise

[Guest guest]

http://news.bbc.co.uk/2/hi/world/asia_pacific/10252344.stm

Page last updated at 7:13 GMT, Monday, 7 June 2010 8:13 UK

Foxconn gives workers second pay rise

By Bristow

BBC News, Beijing

An electronics company hit by a string of suicides has raised wages in China -

for the second time in less than a week.

Foxconn will increase salaries at its Shenzhen plant by nearly 70% from as early

as 1 October, if workers meet certain conditions.

This is in addition to last week's announcement that wages would go up by 30%.

There have been 10 suicides at the Taiwan firm's Shenzhen factory in 2010.

Shares down

A statement from Foxconn, which makes Apple's iPad and iPhone, said the second

pay rise would lessen the pressure on workers to do overtime.

" While overtime work was always voluntary, this wage increase will reduce

overtime work as a personal necessity, " the statement said.

It said wages for production line employees at the firm's Shenzhen plant would

rise from 1,200 yuan ($176, £122) to 2,000 yuan.

To get that pay rise, workers first have to pass a performance test lasting

three months.

New employees will be put on probation for the same amount of time before

getting the increase.

Pay increases for workers at Foxconn's other Chinese plants - it employs more

than 800,000 people in China - will be announced from July 1.

" This wage increase has been instituted to safeguard the dignity of workers, "

said Foxconn's founder and chairman, Terry Gou.

This latest announcement is in addition to last Wednesday's pay rise of 30% at

all its factories in China.

Foxconn, the trading name for Hon Hai Precision Industry Company, declined to

say why there have been two large wage increases in less than a week.

" I can't comment on that, " said a company spokeswoman.

The firm has been hit by a series of suicides this year.

Ten people have killed themselves at its plant in Shenzhen, in southern China,

which employs about 400,000 people. Three more apparently tried to take their

own lives.

Mr Gou said he was having trouble sleeping at night - and dreads an after-hours

phone call, fearing it will be another suicide.

Increasing pay is just one method to make sure workers are more " stable and

comfortable " .

Foxconn has also employed psychiatrists and installed safety nets on buildings.

While the pay rise is good for workers, investors took a different view.

The company's shares fell sharply on the Taiwan stock market following the

announcement of the second pay rise.

Trading in the company's shares on the Hong Kong Exchange was suspended on

Monday.