Foxconn Hikes Client Prices To Cover Worker Pay Rises

Foxconn, which assembles hardware for leading US and European electronics firms, has announced that it will be increasing its prices to customers in order to help cover recent wage rises for its employees.

The company, a subsidiary of Hon Hai Precision Industry, increased the wages of employees working at its Shenzhen factory complex in southern China, following a string of suicides.

News of the suicides had led to foreign and local pressure on the company, with questions being asked about the treatment of its employees.

Foxconn was forced to almost double the wages of its Shenzhen factory workers, bringing pay in line with the Beijing minimum wage. The firm also outsourced management of its employee dormitory buildings to a local real estate developer to attempt to improve workers living arrangements.

News agency Associated Press reports that Hon Hai vice-president C.L. Huang, speaking at a press conference, said that the company would not only look to cover the rise in wages but will also move production of low-margin devices to areas were factory wages are lower, such as its new complex in Henan province.