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Foxconn expected to raise prices to make up for higher wages

Posted on Friday, July 23 2010 @ 19:57:39 CEST by

Mercury News reports Foxconn plans to raise prices on its products to cover its recent wage increases:
The extent of price increases will differ according to products, C.L. Huang, vice president of Hon Hai Precision Industry, parent firm of Foxconn, said at a news conference Wednesday night. She did not name the clients.

The Taiwanese company in June announced two wage increases, more than doubling the basic worker pay to 2,000 yuan ($295) a month for Chinese workers who make iPhones, iPads and other brand-name electronics for corporations including Apple and Hewlett-Packard.

The raises follow 10 worker suicides at the Foxconn compound in the southern Chinese city of Shenzhen. Labor activists have linked the suicides to unduly harsh conditions at the plant, where more than 300,000 people are employed.



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