Will suicide rates become the new labor negotiating tactic? If the results of the public outcry over the rate of suicides at Foxconn are an indication, yes.
Foxconn raised pay for every single one of its Chinese computer makers by 30% yesterday.
Parent company Hon Hai originally said workers would get a 20% raise, but labor activists cried foul and the company upped the ante to a 30% pay raise.
All the time, the maker of computers for Apple, Dell, Sony, Motorola and HP, denies that working conditions have contributed to the 10 suicides in the past few months.
Low pay is the biggest gripe against Foxconn, but reports indicate that employees work almost non-stop with little time for sleeping or eating.
Hon Hai says they will pass the costs on to the end purchasers, but may take months to gauge the actual impact of the 30% pay raise.
Reports are that Apple will actively contribute to the higher wages,giving up some profit for good PR. CEO Steve Jobs says Foxconn is not a sweatshop and insists the suicide rate at Foxconn is lower than Chinese and American averages.
Social Media