Will 30 Percent Pay Raise In China Reduce Number Suicides in Plant Manufacturing iPhones, iPad

Shaken by a rash of suicides at its China plants Taiwan's FoxconnTechnologyGroup said it is increasing the pay of workers by 30%, a greater raise than first planned. The company, maker of  iPhones, iPads, and other electronic gadgets, said the pay increase takes effect immediately at its plants across China.

 

In comments to the media, a Foxconn official noted, "With the pay raise, we hope workers don't need to work overtime as much and thus gain more time for leisure and have a happier working environment. It may also help cut the turnover rate and raise productivity and product quality level."

 

The typical salary at Foxconn's China plants is currently about 900 yuan ($130) per month.

Foxconn had been thinking about increasing pay for months to deal with a labor shortage following China's recovery from the global recession. The eventual raise is higher than the 20% the company first planned.

 

Ten workers killed themselves and three attempted suicide at Foxconn's operations in southern China in 2010, involving mostly workers who jumped from buildings. (WCxKitz)  The most recent suicide attempt was a 25-year-old man who slashed his wrists in the factory dormitory. One additional Foxconn worker in northern China also committed suicide in 2010.

 

  \Author Rebecca Shafer, Attorney/Risk Consultant, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact:  [email protected]   or 860-553-6604.

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