After a string of
highly localized suicides at Foxconn's manufacturing campus captured the world's attention --
again -- the company has decided to increase worker wages by about 20 percent. Foxconn says that the pay raise had been planned for some time but did not say when it would be implemented. Mind you, a 20% bump in the third quarter is not unusual as Foxconn ramps up production for the holidays. In fact, Foxconn has given raises by as much as 50% in the past according to Vincent Chen, analyst at Yuanta Securities in Taipei. At the moment, Foxconn entry-level line workers are paid 900 yuan (about $131.80) per month -- remuneration that exceeds the local minimum wage in the area. And that's
before bonuses and that
oh-so tempting overtime pay are factored in. It's also worth noting that Foxconn is said by a factory worker surnamed Wang, to pay 100,000 yuan (about 10 times a worker's annual base salary) to families of suicide victims -- a sum he says has tempted some to their death.
Update: CEO Terry Guo is being
quoted as saying that Foxconn plans to relocate some facilities and about a fifth of its Shenzhen workforce (that's about 80,000 people based on the 400k estimates tossed around) to western parts of China so that the workers can be closer to their families. Meanwhile, Sony, Nokia, and
Nintendo, all Foxconn customers, have joined
Apple, Dell, and HP in expressing their public concern over the working conditions in Foxconn.
posted May 28th 2010 6:34AM
Anti-suicide raises for EVERYONE!
Engadget pleaase don't you have a different picture than this one?
Sorry, just want more people see this.
You all know the city these people work is Shenzhen. This is a developed region, and everything is expensive.
This year in this city, the average price for a new apartment is 20,000 yuan per sq meter (US$3,000). For new house (villa), the average price is 35,000 yuan (US$5,000).
Yes, this is higher than average/mean price in US.
A work's annual income worth 0.5 sq meter of apartment in the city he works.
A worker's life worth 5 sq meter of apartment in the city he works.
And this man said 100,000 yuan "... has tempted some to their death ...".
@zzz8zzz8
I remember when I went to China, buying a car was the equivalent of morgaging a house. There is a really big difference between income and cost of living.
@zzz8zzz8
Foxconn provides food and housing for all its workers, so the workers do not have to pay for any living expenses. So the degree of development in ShenZhen doesn't really apply to the situation here.
Most workers are immigrants from inner China where its much less developed. So the amount of money they earn compared to what they can earn in a farm is much more.
@zzz8zzz8 You can't just quote market prices for real estate though since it's been driven up by rampant speculation. Though China has embraced capitalism for business, housing is still heavily subsidized so people who can't afford to join in on the real estate buying fever can still pretty easily afford to pay their rents. Kinda like rent stabilization policies in some U.S. cities, except on a much larger and more classically communist scale.
On top of which, Foxconn does offer free basic dormitory housing for it's workers in case they can't get any housing. No, Foxconn workers aren't going to be buying sweet condos in Shenzhen but last time I checked most working class people in Manhattan or San Francisco can't afford to buy housing at market prices either. That McDonald's worker in Times Square probably doesn't live in the high-rise luxury condo nearby.
We should all do this in McDonald's. They make billions a year. Minimum wage in Oregon is 8 and something cents. Imagine getting paid 20 dollars to take orders, flip burgers and giving food to the customer. Easy!
@tekdemon
A McDonald's worker in Time Square at least has hope (and quite possible) to buy a small apartment in Queens County, isn't it?
My "Average price" means the whole Shenzhen, just like New York City includes Queens County.
Housing is NOT subsidized in China at all (unless you work for the government). 81.62% houses in China are owned by private sector, which is the highest in the world.
Funny how all these companies are trying to wash their hands, expressing "concern" over the work conditions at Foxconn. Yeah, right. That's because it's out in the open.
@tekdemon
And do you know that statistics data also exists in China? These are official data published by government, not speculation.
@aubreyq What I find funny is how every blog tries to make this an Apple issue, like said company actually has any control over what happens, and disses them for not dumping Foxconn for someone else (who probably isn't actually much better). And then there's the last line lip service to the other companies that also are 'in league with the devils'.
@gargle : It doesn't exist, if we can't see it. :|
@tekdemon
Foxconn do provide BASIC dormitory, which means 8~12 person living in a 30 sq meter room. You think Foxconn cost a lot for it?
@zzz8zzz8
Those misleading numbers you quote are PURCHASING prices for new property and are not fair measuring sticks. Do you have stats for the actual cost of living in Shenzhen, such as cost of food, clothing, transportation, entertainment, etc.?
@joe23521
Why would you say purchasing price is misleading?
Living in Shenzhen:
Food: Big Mac Index, half the price of US.
Clothing: can be very cheap.
Traffic: same car twice the price as US. Gasoline price higher than US.
Entertainment: movie average US$11, Avatar US$15~20
These worker's monthly income equals to 80 Big Mac, or 12 movies (definitely not Avatar).
I wouldn't argue with you guys anymore, you simply don't care, even if their monthly income can only buy 80 Big Mac.
@inzim Believe me,they pay and pay and pay. These people have come straight from the country as they know it into a mechanized noisy stressful industrial environment. It really is a social, cultural experiment. All "I" want is the gadget I purchased and good quality control so it works when I get it.
China does have a high personal savings rate if I remember correctly so maybe they get to go home with some funds to have a better life later... But is it worth it?
@zzz8zzz8
Quoting direct exchange rates with no regard to purchasing power parity, are we?
Also, please note that McDonald's in China isn't an accurate measure of the cost of food.
@zzz8zzz8 you are arguing with european yard sticks, lets just say you'll be a lot more comfortable with 900 Yuan than 132 USD.
@zzz8zzz8
They are misleading because you are not factoring in LIFE STYLE. The average Chinese person has a drastically different life style than the average American person. To live comfortably as a migrant worker in Shenzhen, you don't need any of those things you constantly bring up as measuring sticks - namely high end real estate, brand new cars, Big Macs. You're comparing apples to oranges, or hamburgers to pot stickers.
@joe23521
Their monthly income can watch 12 movies, or buy 40kg pork/chicken (uncooked). They can't afford renting a tiny apartment and all live in a 30 sq meter dormitory that has 8~12 worker each. And you keep bragging about life style???
You are so heartless.
@joe23521
Want to see their "lifestyle"? Look at one of their free dormitory in factory area. For obvious reason, you can hardly find new photos on the web.
http://www.appleinsider.com/articles/06/06/26/foxconn_ipod_factories_get_apple_approval.html
http://www.techweb.com.cn/news/2006-06-17/66675.shtml
@wesley anthony Hey look, they are actually doing something positive! It only took a ton of people taking their lives to do so, talk about progressive!
/s
The last sentence is such a shame, it's shocking how people out in these countries put their family's welfare before their own life.
@Javindo
you mean like a mother going towards a knife when an armed house-break happens and threatens her children.
or wait, yes! when a man jumps into flames to save his kids
you need more examples,
it is the exact same behavior, for the necessity of saving your family's life that we have even in western world.
(besides kids raping their mum's or beating their grandparents for drug money or for a beer)
well, in each case, it is a matter of life, the only difference there is that life depends on food and health while we are wealthy enough that for us it is other factors,
but the drive is the same
@Javindo
True, but in our countries.... We put ourselves before our familes, destroy our relationships, give broken homes to our kids and hope our parents die quick so we can get their money
I think there is a lot more honour and social integrity in dying for your family as opposed to wAnting them dead for yourself.
Now i ain't saying that is everyone but it is bleedingly obvious it's a LOT
@Cy Starkman :: I don't want my parents money. :: anyway back on topic; the situation explained in the last sentence is sad no matter how necessary.
Are you guys out of your mind? THAT'S AN EXCUSE!
You think 100,000 yuan is lots of money in China???
Do you know that the average price for an apartment in Shenzhen this year is 20,000 yuan per square meter, which means a suicider will earn his family 5 square meter.
And if it's a house instead of an apartment, then the average price will be 35,000 yuan.
For these poor guys, a year's hard work will earn 0.5 sq meter in the city he work - if he doesn't spend a penny.
Now you understand why they are in despair. Forget it and go play with your blood-soaked gadgets.
@D1Only1
its not really the same, in those situations its instinct, your saving your child from dieing, in the case of working for foxconn the kids will be ok, just not well off, but the fact that they would consider climbing up to a roof and then jumping off just so their family can afford a flat is something very different...
im glad to see about the raise, it may not be great, but heck, 20% is a BIG increase for anyone, and will help no matter what, hopefully this is a step in the right direction :)
@zzz8zzz8 How exactly did you get on the Internet? A blood soaked device or two I'm sure, hypocrite
@zzz8zzz8
You really need to calm down. There are more complx issues than just the real estate pricing you quote. I don't know why you are posting it over and over.
No matter how little that money is to you, some people from rural communities would kill themselves to get some money in their family's pocket. Desperate people do desperate things. Stop trying to rationalize the basis for suicide off of real estate - it isn't the most rational act in the first place to kill yourself.
Oh, and the blood soaked gadget comment was tasteless from someone who also posts on a gadget blog.
@timmy2000
There are quite a lot of devices not made in China and not made by Apple, HP or Dell.
@zzz8zzz8 you meat head, migrant workers will never, and never thought of buying or even renting apartments in coastal cities, they send money back home in the countryside so their families can build houses. A typical two story 100-150m^2 house in the country side only cost about 30,000 to 50,000 yuan to build.
@zzz8zzz8
The problem is, you're quoting prices you find on Google. I can assure you that you're incredibly wrong about housing and cost of living, because the prices you find on Google are from people who love charging foreigners ABSURD prices.
This is especially prevalent in Vietnam and China. If you were to go there, and have a Chinese or Vietnamese (in Vietnam) girlfriend make the deal for you (of course, you'd have to pay and it would be in your name), you'd get a MASSIVE discount.
The food is actually very cheap as well, and so is clothing.
"a sum he says has tempted some to their death."
So, employees are actually considering killing themselves to get money for their families?
That's plain f'ed up.
@tmfan Seriously!
In America, we get life insurance for our family members, and then encourage them to go skydiving, diving with sharks, mountain climbing, train dodging and the like.
@tmfan,
we are not doing it for thesmselves.
we are doing it for the greater good.
rejoice, our fellow colleagues!
@tmfan,
we are not doing it for ourselves.
we are doing it for the greater good.
rejoice, our fellow colleagues!
@tmfan Nope. That's plain love.
do you know what can do with 900 yuan in china?
if they wanna buy a house it costs almost 5000 yuan per sq meter.
20% turns out nothing.
@Mll4eveR
you are from US?
well the salary is a package.
if you ear say: 4000$ here .
less 900 for your flat rental
less 200 for bills and utilities
less 60 meals a months at 10 to 15 $ each (they have a subsidised canteen.)
less 800$ for a small car (financial cost of a loan, or depreciation if you paid cash + repairs + insurance + oil + maintenance normalized on a monthly cost)
you could as well earn 200 with free accommodation, food cheap, no transport needed...
it is a different point of view. but your comment is not correct
What concerns me is that this raise will probably only reach a few workers, just a media stunt IMO.
@Mll4eveR Actually, many of these workers live at the factory with free meals and housing provided.
And when you buy a house in China, its not like in the US where its occupied by 1-3 people, you have a few generations packed in sharing the cost. And in the cities there are a lot of inexpensive compact high rises.
What China is proof of though is that if you stop with the massive handouts, people WILL work, even for pennies (not that I condone that).
Currently there are 50.1 million Americans on welfare and 10-11 million illegal aliens, and then we wonder why there are no more low-skill manufacturing jobs available to Americans.
@D1Only1 apparently you are not from the U.S., in most area things are way more affortable than you thought.
*another one jumps from building*
@Munny Swirl
^wtf is wrong with this guy.
Their base salary is more than I used to earn working at mcdonalds (working only 4 days a month mind you).
@tobsmonster2 Yeah, they're working way more than four days a month.
YAY!!!!!