Apple pledge may hike China wages
BEIJING (AP) — A pledge by the manufacturer of Apple’s iphones and ipads to limit work hours at its factories in China could force other global corporations to hike pay for Chinese workers who produce the world’s consumer electronics, toys and other goods.
Foxconn Technology’s promise comes as Beijing is pushing foreign companies to share more of their revenues with Chinese employees. It follows a report by a labor auditor hired by Apple Inc. that found Foxconn was regularly violating legal limits on overtime, with factory employees working more than 60 hours per week.
“I think whatever Foxconn did will have an impact, certainly, on all Chinese workers in all trades,” said Willy Lin, managing director of Hong Kong-based Milo’s Knitwear, which makes clothing in three factories in China for European clients.
Foxconn, owned by Taiwan’s Hon Hai Precision Industry Co., promised to limit hours while keeping total pay the same, effectively paying more per hour. Foxconn is one of China’s biggest employers, with 1.2 million workers who also assemble products for Microsoft Corp. and Hewlett-packard Co.
Japan’s Toshiba Group, which employs 32,000 workers in China to make goods such as refrigerators and TVS, said it too is taking measures to reduce overtime work and create safe working conditions at its factories.
Foxconn responded to a spate of suicides by employees at one of its mainland factory campuses in 2010 by more than doubling its basic monthly salary to 1,800 yuan ($290). The same year, Toyota Motor Corp. and other Japanese automakers granted pay hikes following a wave of strikes that had tacit government support.