Foxconn recently announced a pay increase for their production workers, however by cutting their maximum working hours in three factories on China, they may lose some of their workforce.
Foxconn have been featured in many news stories over the last 2 years, often featured because of poor working conditions, long hours and minimum pay for their staff. In an effort to help resolve the public perception they entered into a 15 month program to improve the working situations and to cut overtime.
The company now face a new concern. The pay increase is so minor for many production staff that the cutting of hours is forcing them to consider new employment options.
A Foxconn worker, who wished to remain anonymous spoke to a local newspaper and said that the workers would prefer to have longer hours and overtime, so they could earn more money to get higher wages.
The worker said in an interview “Out of the 2,350 yuan (US$370) salary every month, we have to pay 190 yuan for social security insurance, 120 yuan for housing fund, 110 yuan for accommodation, and three meals a day. Life is tough.”
Auret Van Heerden, president and CEO of the FLA spoke to Reuters “A lot of workers have clearly come to Shenzhen to make as much money as they can in as short a period as they can, and overtime hours are very important in that calculation. We are picking up concerns now on the microblogs about what’s likely to happen as hours gets changed, and whether their incomes will be shaved as well.”
Kitguru says: It seems sad that a company so involved in the creation of the world’s leading technology devices can’t maintain a well paid, happy work force.