Foxconn Workers to Get a 30% Raise

Production line workers at Foxconn's manufacturing hub in southern China will get a 30 percent pay raise, according to Reuters.

A string of suicides caused by difficult conditions and high payouts to family members have garnered international attention.

Hon Hai Precision Industry, the owner of Foxconn, said on Wednesday that the cash component of wages would rise by 30 percent effective immediately, more than the 20 percent rise the company had talked about late last month.


Steve Jobs commented on the situation at the All Things D conference yesterday.

"We are on top of this. We look at everything at these companies. I can tell you a few things that we know. And we are all over this. Foxconn is not a sweatshop."

"It's a factory -- but my gosh, they have restaurants and movie theaters... but it's a factory. But they've had some suicides and attempted suicides -- and they have 400,000 people there. The rate is under what the US rate is, but it's still troubling."

"We had this in my hometown of Palo Alto, copy cat suicides. We're over there trying to understand this. It's a difficult situation. We're trying to understand this. We have people over there."


Hon Hai's shares closed 4 percent lower at a nine-month low in a broader market down 1.3 percent, while Foxconn shares shed 1.4 percent in Hong Kong.

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