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Foxconn hikes salary by nearly 70 pct after serial suicides

06-08-2010 13:06 BJT

SHENZHEN, June 7 (Xinhua) -- Foxconn, a world's leading IT contract manufacturer, announced Sunday night in a statement that it will raise salaries for assembly workers at its production base in the southern Chinese city of Shenzhen by 66 percent to 2,000 yuan (293.3 U.S. dollars) per month as of Oct. 1.

Foxconn last Wednesday announced a 30-percent pay increase for workers at its Shenzhen plants starting June for what it claimed were "rising consumer prices and living costs and its corporate performance."

The pay rises came after 10 workers killed themselves and three attempted suicide at Foxconn's Shenzhen base this year.

Foxconn hoped the pay hikes would help employees increase incomes while reducing overtime, and have enough time for leisure activities.

But it is not immediately clear how many of the company's 400,000 Chinese mainland workforce would benefit from the wage hike.

"The criteria for carrying out the work performance assessment referred to above (the wage hike) are still to be decided by the company," according to a statement posted on the Hong Kong Stocks Exchange by the Foxconn International Holdings Limited (FIH HK2038), the company's listing arm.

Trading in Foxconn stock was halted immediately after the Hong Kong exchange opened Monday morning. Its shares ended at 5.66 HK dollars before the trading suspension, down 5.5 percent from the previous closing.

Foxconn also announced that its stock would resume trading on Tuesday.

Foxconn said it could not immediately determine the impact of the wage adjustment on the group's financial earnings for the year ending Dec. 31, 2010, according to the statement.

"There are other factors which may help mitigate or offset such an increase in operating costs, such as an increase in revenue or a reduction in other operating costs," the statement noted.

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