Apple and its main partner, Foxconn, has pledged to raise the salaries of its workers building iPhones and iPads along with cutting down working hours.
The decision follows the Fair Labor Association report where it was revealed that the Chinese manufacturer had committed serious breaches in regards to work related legislation. Consequently, Foxconn's parent company Hon Hai Precision Industry Co has promised to address the situation.
The wage increase and reduction of work hours would inevitably affect the company's profits. Consequently, assembly costs are expeyced to rise and Apple is not the only tech giant to have its products assembled in the Foxconn facilities.
According to reports, Foxconn Technology Group makes about 40 per cent of the electronic devices sold worldwide, including Microsoft Corp., Hewlett-Packard Co. and Dell Inc. The company employs 1.2 million workers, all expecting higher paychecks.
In addition, the Foxconn pledge to respect the labour related legislation could have a ripple effect - with both employees and partners feeling the upcoming amendments.
Other industries will also have to bend under the wind of change. "I think whatever Foxconn did will have an impact, certainly, on all Chinese workers in all trades," predicted Willy Lin, managing director of Hong Kong-based Milo's Knitwear.
Source: Kpic (opens in new tab)