Foxconn has announced a pay raise for its iPhone assembly workers at its Shenzhen plant in China. The generous 16% to 25% raise was likely spurred by Apple’s ongoing investigation into pay and working conditions at the plant.
Hon Hai (aka Foxconn) announced late Friday that salaries for assembly line workers in Shenzhen, southern China, have been raised by 16% to 25% to 1,800 to 2,500 yuan ($285-$400) monthly, depending on job performance, from Feb. 1.
Foxconn is the world’s largest computer component manufacturer and assembles products for Apple — including the iPhone — plus Sony and Nokia. It employs about one million workers in China, about half of them based in Shenzhen.
The statement came as the Fair Labor Association began inspections for Apple on Monday at Foxconn’s plant in Shenzhen, following reports that employees were overworked and underpaid.
Apple appears to be keeping a close watch on pay and conditions at its key suppliers these days, following two major incidents.
The company discovered in November that Pegatron had been allowing students to work overtime and nights – a practice strictly forbidden by Apple. Apple says the company not only knowingly violated Apple’s labor rules but went to “extraordinary” lengths to hide the activities.
A month later, a riot at a Wistron iPhone assembly plant in India occurred, causing damage to the plant. Workers were reportedly upset over unpaid wages and working conditions.