Foxconn raises basic pay by 16% for certain line workers and cuts probation period in half

Hon Hai Precision Industry Co, also known as Foxconn, has had a hard time finding labor in Zhengzhou. To keep current workers and attract new ones, line employees at the factory will get a 16% hike in basic pay while the probation period for new workers is cut in half to 3 months from 6 months. Foxconn has more than 1 million employees in the country and its factories assemble both the Apple iPhone and Apple iPad. Starting at the beginning of this month, Foxconn raised the monthly pay (excluding overtime) for production line workers in Zhengzhou to 1,800 yuan ($283.10 USD) from 1,550 yuan ($243.78 USD) which is supplemented by an additional 200 yuan ($31.46 USD) bonus during the busy months of August through November

Earlier this year, the Fair Labor Association in Washington put pressure on Foxconn to improve working conditions after a series of worker suicides at the Shenzen factory in 2010 which was followed by an explosion the following year at a factory in Chengdu. The FLA says that Foxconn has improved conditions at three factories and should have the other plants meeting its standards by the middle of next year. The company made 89 improvements to many of its facilities, and came in ahead of schedule. Foxconn is also backing a local law that would extend the number of workers who can receive unemployment benefits. Still, the company has a way to go to meet some other laws such as lowering the amount of overtime for 170,000 Chinese workers to within legal limits.

source: WSJ