Apple iPad manufacturer Foxconn says it will raise salaries

Chinese workers assemble electronic components at Foxconn's factory in Shenzhen, in the southern Guangzhou province. The Taiwanese technology giant manufactures Apple products. AP Photo, file

AP
(CNET) - Infamous Apple supplier Foxconn said this weekend that it would increase worker salaries at its Chinese factories by 16 percent to 25 percent--bringing them to about $400 a month.

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iPad manufacturer Foxconn under fire again, Apple responds

The New York Times reported the news, adding that Foxconn said the increases would happen immediately and that overtime hours would be curbed at the factories as well.

Foxconn's announcement comes as its facilities are being investigated at the behest of Apple, a major Foxconn client. Foxconn produces components for the iPad and the iPhone.

Apple is feeling the heat from human rights advocates and others after the Times published a series of expos»s on the company and its supply chain, including Foxconn. It wasn't the first time Foxconn's practices had been called into question, but the high-profile paper's detailed reports helped push the issue into mainstream consciousness, sparking widespread editorials, calls for boycotts of Apple, petitions, and demonstrations at Apple stores.

In response, Apple CEO Tim Cook issued a statement saying that any suggestion that Apple doesn't care about worker welfare is "false and offensive." Apple has also asked the Fair Labor Association, an organization that says it's "dedicated to ending sweatshop conditions in factories worldwide," to investigate Foxconn facilities in Shenzhen and Chengdu, China. The FLA's report isn't due till next month, but the group's chief executive said this week that the FLA had already found "tons of issues" with Foxconn.

Foxconn doesn't exactly beg to be given the benefit of the doubt. Part of the company's reaction to a series of worker suicides was to install suicide nets--nets Apple critic and performance artist Mike Daisey said looked a lot like "the nets you would put out to catch fish." (The company raised salaries then as well, and hired more counselors.) Foxconn CEO Terry Gou also made a misstep when he sought management advice from the director of the Taipei Zoo and compared his workforce to animals, adding that "to manage 1 million animals gives me a headache."

The Times said Foxconn could not be reached for additional comment on the salary increases.

This article first appeared at CNET under the headline "Apple supplier Foxconn says it will raise salaries."

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