Foxconn Technology Group (富士康科技集團), the world’s largest contract electronics maker, has raised wages for its Chinese workers by a range of between 16 to 25 percent, taking effect retroactively from Feb. 1.
It was the third salary hike since 2010 by Foxconn, which is also known as Hon Hai Group (鴻海集團). The company churns out iPhones and iPads for Apple Inc through its broad global production base, in China in particular.
Foxconn currently operates four manufacturing complexes in China, including a coastal compound in Shenzhen, and employs more than 1 million workers.
At the Shenzhen plant, which is where Foxconn initially began production in 1988, the basic wage will be raised to no less than 2,200 yuan (US$349) a month from 1,800 yuan.
Before the series of wage hikes three years ago, the basic salary at the Shenzhen complex stood at 900 yuan.
Foxconn said in a statement on Friday that the group, aiming to become a first-tier manufacturer in China, was determined to upgrade production technology and improve efficiency and performance, while vowing to offer satisfactory compensation for employees.
In fact, Foxconn said, the basic wages on its production lines in China are well above the minimum wages required by local Chinese governments.
The group said it would continue to provide its Chinese employees with training courses and opportunities to polish their skills.
Foxconn, which has been criticized for running “blood and sweat” plants in China, is being audited by the US-based Fair Labor Association for all aspects of its working and living conditions, including factors such as wages, health and safety.
The audit was requested by Apple, which said its suppliers, including Foxconn, will cooperate with the inspectors.
The US consumer electronics giant launched the initiative in response to recent concerns over labor practices and reported abuses in the Chinese factories of its suppliers.
Foxconn began the series of wage hikes after a spate of worker suicides at its China complexes in 2010. Last year, an explosion at its Chengdu plant killed three workers.
To cut rising operating costs in Shenzhen, Foxconn has relocated its production lines to inland Chinese cities.