Chinese website Zol -- which is owned by CBS Interactive -- is reporting that Apple may be moving toward a model of paying
Foxconn employees direct subsidies, in the form of small percentages of the profits from whatever product line they work on. It's also interesting to note that the report claims that Apple has
looked into the situation, and found that the general unhappiness of the workers and the recent spate of suicides could be attributed to low wages. The report says that Apple -- which apparently pays Foxconn 2.3 percent of the final retail price for a given product -- will pay an additional amount directly to the workers, which would give a significant boost to the roughly $132 they're currently pulling in per month. The actual payout numbers we're hearing -- around 1 to 2 percent of a retail price of the products manufactured -- don't exactly make sense so we're hoping to get clarification as to the breakdown if the rumor turns out to be true. The report also states that the
iPad production line will be the first to benefit from the scheme. We have asked Apple for comment and will update if and when we hear back.
posted May 31st 2010 12:19PM
People are dying here, so it's about time...
@deliteguy
Yep, I hope then benefit from that greatly.
@deliteguy
ever since the Foxconn issues where highlighted i've looked at every gadget i own, laptop, phone etc in a different way. It really does make you feel gutted and how blessed with are to have such things just handed over. I work in a mobile shop with uni and i thought my life was hard but these stories are just like modern world slavery.
All i can say is with all the controversy in products aside, Respect Apple, hopefully others will follow.
They are humans with lives just like us.
@deliteguy
Agreed. I'm normally one of Apple's detractors, but this was a very decent and respectful thing to do.
@deliteguy
Wow, it's interesting to see how shallow most responses are here. Sure, it's easier for me to criticize without offering solutions. Though I often wonder if circumstances regarding major depression isn't far more complicated than simple wages and work schedules. Still, it's probably easier to put a price on a problem and hope it goes away.
Oh, what the hey, you can't take it with you anyway.
@deliteguy this isn't like apple isn't paying for the work they are doing, but lets stop to think that everything you are probably wearing came from a factory where people are getting paid less then what the people at this factory are getting paid. Think of that the next time you go shopping.
@Phucpholuc
Still managing to find a way to hate Apple, huh?
@Phucpholuc
If there's one thing Apple values most, it's people. Both those who buy and make/sell the products. They have a long history of standing up against its contractors who treat their workers unfairly and helping out workers in need (case in point).
Props to AAPL. My level of respect for those guys just tripled
@Ignoramus
at least they're productive and not into gangs, mafia or organized crime in destitute areas of the US or elsewhere like in the middle east raising terror
@deliteguy
So it's gonna go from suicides to murder to work at foxconn.
Either way, you have to admire Apple if this is true.
@zeroinfinity2
Anyone notice Engadget's error again? Lol "for for"
@bravokiloromeo
Yep, and again Apple's leading the way in this. Tomorrow's headline (maybe, hopefully); Dell, HP and others follow Apple's lead and decide to pay Foxconn employees directly...
Hmmm, first we have a stock image of a sad, old Chinese worker when people are dying, now we have a young, content Chinese worker when there's a rumor Apple will pay them direct. Now, either that old woman from before topped herself and was replaced by this younger girl who doesn't know what she's in for or this site is trying to manipulate my emotions.
Whatever, if it actually does put an end to the misery then it's all good but let's be clear, it's not just Apple involved here. There are other massive companies using these workers too so let's hope it's yet another area rival companies follow Apple's lead.
At least we got a different Foxconn picture this time.
@deliteguy None of this sounds true though, and if only the Apple assembly line people are getting this huge wage increase then isn't this gonna make everyone else even more depressed/angry?
@Ignoramus
how much of a jackass can you be?
They should also give them free products!
@JonnyB
Didn't see that mistake but I did see the "of of".
@deliteguy
If the product isn't worth dieing ver, you blew it!
@Ignoramus
Wow. What an idiot, can't believe it.. Well this world is unequal. I hope you get your share of that by getting into accident, having fatal disease or something else. Scumbag
A respectful move, I must admit. However, prepare for your iPhone 4G to cost about $1200 on a 5 year contract...
@xconan
And what are you? Trying to be sympathetic, you biased loser. LOL
@Zylam
You respect Apple? You think they didn't know these working conditions existed? How else would they get such cheap labor
This response is the normal Apple PR churning
@deliteguy
Really? Maybe it's just me but I fail to realize how this is Apple's responsibility, at all. It's not. It's very awesome of them to do this, however it would be even more substantial if Foxconn's other major contractors were not so greedy (Dell, HP), and went in on it with them.
I have a question.
I never understood the following about the Foxconn Suicides:
According to WHO, the average rate of suicide in china is 13.0/100,000 (male), 14.8/100,000 (female).
Therefore, shouldn't Foxconn a company of 800,000 employees be expecting (13 to 14.8)/100,000 * 800,000 = 104 - 118.4 suicides per year to be the norm? Consider it is only end of may, that translates to 43 - 49 expected suicides by this time. This is less than the 11 reported so far. Does this not mean Foxconn has a lower rate of suicide?
I am only asking out of curiosity and not out of disrespect.
@Edobe
Really? They pretty much built their empire on slaves. Once done, they then go back and say "oh we might have been a bit harsh".
Screw money, they want their lives back.
@Zylam Too little too late to be looking more closely at your electronics. People in Africa have been melting solder to recover scrap in their cooking pans for years.
@tikigawd You must really dislike Apple to think it's a PR stunt.
If it's a PR stunt then tell me why it's not all over their website?
Or is that all part of the big evil plan to make it not look like PR stunt.
The industrialisation of China and the reasons why people choose to suicide are very complex issues.
Some will question Apple's motivation but as an Apple user I am proud that Apple have chosen to get involved more directly.
I hope other companies, what ever their motivation, also choose more direct action.
@Laura
From a cost accounting perspective the 1-2% of retail could well be referring to the direct labour cost per unit.
@deliteguy Apple should continue to help them and not be an ignorant top-of-the-market company.
@charsoxer
Life is not a number.
-------------------------------
I suggest you calculate the suicide per company or per square miles.
Foxconn is a company with no reputation in China. Tons of negative news about it in chinese electronics forums.
@Nolano
There is nothing decent about doing something AFTER the fact. If Apple was any different it should have thought twice before having a Chinese manufacturer. It's really easy to show compassion for your slaves AFTER they start dying off and attract unwanted press. It's business people and if it pays to be good - like now - they will do it. Otherwise, they'll just keep on like they did for the last 20 years.
@charsoxer your math is all off your doing it on a population based scale not a factory based scale you would have to find the avergae suicide rates in a factory not in the country the factory is in elementary level statistics go back to school kid.
@deliteguy Apple has a resemblance with Foxconn in someway, that's why the help. http://j.mp/apple-child-labor-phone
@jellotime91
then you won't like this: it's our (your!) responsibility, too. "that's how the market works," as the cliche goes.
@Billy
Continue to help them.. Isn't that a bit blue- eyed. Apple did this because they had to, or people would take them on harder. Don't consider them angels. They knew the workers conditions and payments.
@Ralven I really hope you are not or never become a teacher. He clearly stated "I have a question" and went on to be very polite about it. It is people like you who cause kids in classrooms to be afraid to raise their hands and learn from their questions or mistakes.
Even if your method of calculation may be correct, have some respect. At least charsoxer has some.
@charsoxer and everyone else I've seen getting high ranked for similar comments.
Numbers aren't that simple. Out of the national average for suicides, how many are paid as much as Foxconn employees (remember, Foxconn reportedly pays for overtime unlike other companies)? How many get paid for overtime? What are their occupations, social/economic backgrounds?
For Foxconn numbers, what are the rates like for rival factories' suicides?
Just running quick math on suicide numbers (they're human lives FFS) does any institution (a factory, a nation, society) great injustice.
Even so, a problem is a problem no matter how small it looks in comparison to something else and we should be glad that its getting attention.
So now foxconn will start charging ipad assembly line works rent.
@paulfalgout
That sounds pretty underhanded.
Sad part is, I could totally see that happening...
@paulfalgout. It's about time I force choke Foxconn's CEO
Lord Vader FTFW.
Engadget, maybe its time to have a: lordvader.engdaget.com, or maybe a special weekly edition by him.
@Lord Vader I thought YOU were the Foxconn CEO? :P
Fun fact: Shenzhen is referred to internally at Apple as "Mordor".
@Lord Vader
hahahaha
@paulfalgout
I really appreciate Apple's move here and it will definitely boost the moral among the workers I believe. But this coin has two sides, as always. When this will take effect all the other Foxconn employees who work on different products will feel even less appreciated, sad and depressed.
@Lord Vader
What ever happened to the Anakin I knew who would even be able stop people from dying?
Seriously, Engadget, if you ever have a best commenter award next year this guy should be on the short list!
@r3loaded
Lord Vader may force choke those subordinates who do a less than satisfactory job, but he pays quite well.
Great. Those guys deserve a better life.