20 February 2012
Following international pressure, Foxconn Technology - one of the biggest manufacturers of products for Apple, Dell, Hewlett-Packard and others - has announced a raise in workers' salaries and reduction in overtime hours at its Chinese factories.
According to The New York Times, Foxconn said that salaries for many workers would immediately increase by 16 to 25 per cent, roughly equating to 1,800 - 2,500 yuan (£180 - £250) a month before overtime.
"This is the way capitalism is supposed to work," David Autor, an economist at the Massachusetts Institute of Technology said. "As nations develop, wages rise and life theoretically gets better for everyone.
"But in China, for that change to be permanent, consumers have to be willing to bear the consequences. When people read about bad Chinese factories in the paper, they might have a moment of outrage. But then they go to Amazon and are as ruthless as ever about paying the lowest price."
Foxconn has become infamous in recent years, following continued reports of long hours, strict discipline and dangerous practices, as well as the subsequent spate of employee suicides and distress at its factories in China.
Most notably, Foxconn makes iPads and iPhones under contract to Apple in its factories that employ and house over a million Chinese workers.
Apple has been accused of benefiting from Foxconn's low-paid workers, especially in light of the company's record profits last quarter, which has created a PR problem for the company recently.
To help rectify matters, Apple has announced that the Fair Labor Association would independently audit Foxconn City - one of the manufacturer's biggest facilities in Shenzhen.
"We believe that workers everywhere have the right to a safe and fair work environment, which is why we've asked the FLA to independently access the performance of our largest suppliers," said Tim Cook, Apple's CEO.
Apple has also granted access to the notoriously off-limits Foxconn facilities to Nightline, a U.S. news programme, for a report set to air on Tuesday.
Apple factory workers in China receive 25% pay rise
Following international pressure, Foxconn Technology - one of the biggest manufacturers of products for Apple, Dell, Hewlett-Packard and others - has announced a raise in workers' salaries and reduction in overtime hours at its Chinese factories. According to The New York Times, Foxconn said that salaries for many workers would immediately increase by 16 to 25 per cent, roughly equating to 1,800 - 2,500 yuan (£180 - £250) a month before overtime.
"This is the way capitalism is supposed to work," David Autor, an economist at the Massachusetts Institute of Technology said. "As nations develop, wages rise and life theoretically gets better for everyone.
"But in China, for that change to be permanent, consumers have to be willing to bear the consequences. When people read about bad Chinese factories in the paper, they might have a moment of outrage. But then they go to Amazon and are as ruthless as ever about paying the lowest price."
Foxconn has become infamous in recent years, following continued reports of long hours, strict discipline and dangerous practices, as well as the subsequent spate of employee suicides and distress at its factories in China.
Most notably, Foxconn makes iPads and iPhones under contract to Apple in its factories that employ and house over a million Chinese workers.
Apple has been accused of benefiting from Foxconn's low-paid workers, especially in light of the company's record profits last quarter, which has created a PR problem for the company recently.
To help rectify matters, Apple has announced that the Fair Labor Association would independently audit Foxconn City - one of the manufacturer's biggest facilities in Shenzhen.
"We believe that workers everywhere have the right to a safe and fair work environment, which is why we've asked the FLA to independently access the performance of our largest suppliers," said Tim Cook, Apple's CEO.
Apple has also granted access to the notoriously off-limits Foxconn facilities to Nightline, a U.S. news programme, for a report set to air on Tuesday.
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