Foxconn Basic Wages Raised Following Apple (AAPL) Probe
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Price: $313.39 +0.88%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
Revenue Growth %: +15.8%
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Apple’s (Nasdaq: AAPL) probe into Foxconn operations and working conditions may end up hurting margins when all things are said and done.
According to the company, beginning on February 1st, production line employees basic wages rates were increased between 16 percent and 25 percent, dependent on the location, type of work and level of skill, Bloomberg reported. On February 13th, Apple announced the Fair Labor Association would conduct special voluntary audits of Apple’s final assembly suppliers, including Foxconn factories in Shenzhen and Chengdu, China, at Apple’s request.
“We believe that workers everywhere have the right to a safe and fair work environment, which is why we’ve asked the FLA to independently assess the performance of our largest suppliers,” said Tim Cook, Apple’s CEO.
Foxconn ensured the public that its employees are being paid a fair wage which is above the country’s minimum wage requirements.
During the next round of negotiations between the two, Foxconn will likely look to Apple to account for some of the wage hikes. The recent announcement of Apple’s probe into Foxconn and other China final assembly suppliers is nothing new for the company. Apple has conducted over 500 factory audits in the past five years, with over 40 alone at Foxconn manufacturing and final assembly facilities. Bloomberg reported late Friday the workplace auditors found “tons of issues” with Apple’s manufacturing line, but did not offer any further details.
According to the company, beginning on February 1st, production line employees basic wages rates were increased between 16 percent and 25 percent, dependent on the location, type of work and level of skill, Bloomberg reported. On February 13th, Apple announced the Fair Labor Association would conduct special voluntary audits of Apple’s final assembly suppliers, including Foxconn factories in Shenzhen and Chengdu, China, at Apple’s request.
“We believe that workers everywhere have the right to a safe and fair work environment, which is why we’ve asked the FLA to independently assess the performance of our largest suppliers,” said Tim Cook, Apple’s CEO.
Foxconn ensured the public that its employees are being paid a fair wage which is above the country’s minimum wage requirements.
During the next round of negotiations between the two, Foxconn will likely look to Apple to account for some of the wage hikes. The recent announcement of Apple’s probe into Foxconn and other China final assembly suppliers is nothing new for the company. Apple has conducted over 500 factory audits in the past five years, with over 40 alone at Foxconn manufacturing and final assembly facilities. Bloomberg reported late Friday the workplace auditors found “tons of issues” with Apple’s manufacturing line, but did not offer any further details.
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