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Ruffneck

More Evidence Of Hyperinflation In China

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Makers of iPad and iPhone announce 2 pay rises to workers within the same month period.

http://news.bbc.co.uk/2/hi/world/asia_pacific/10252344.stm

An electronics company hit by a string of suicides has raised wages in China - for the second time in less than a week.

Foxconn will increase salaries at its Shenzhen plant by nearly 70% from as early as 1 October, if workers meet certain conditions.

This is in addition to last week's announcement that wages would go up by 30%.

There have been 10 suicides at the Taiwan firm's Shenzhen factory in 2010.

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A statement from Foxconn, which makes Apple's iPad and iPhone, said the second pay rise would lessen the pressure on workers to do overtime.

"While overtime work was always voluntary, this wage increase will reduce overtime work as a personal necessity," the statement said.

It said wages for production line employees at the firm's Shenzhen plant would rise from 1,200 yuan ($176, £122) to 2,000 yuan.

To get that pay rise, workers first have to pass a performance test lasting three months.

New employees will be put on probation for the same amount of time before getting the increase.

Pay increases for workers at Foxconn's other Chinese plants - it employs more than 800,000 people in China - will be announced from July 1.

"This wage increase has been instituted to safeguard the dignity of workers," said Foxconn's founder and chairman, Terry Gou.

This latest announcement is in addition to last Wednesday's pay rise of 30% at all its factories in China.

Foxconn, the trading name for Hon Hai Precision Industry Company, declined to say why there have been two large wage increases in less than a week.

"I can't comment on that," said a company spokeswoman.

The firm has been hit by a series of suicides this year.

Ten people have killed themselves at its plant in Shenzhen, in southern China, which employs about 400,000 people. Three more apparently tried to take their own lives.

Mr Gou said he was having trouble sleeping at night - and dreads an after-hours phone call, fearing it will be another suicide.

Increasing pay is just one method to make sure workers are more "stable and comfortable".

Foxconn has also employed psychiatrists and installed safety nets on buildings.

While the pay rise is good for workers, investors took a different view.

The company's shares fell sharply on the Taiwan stock market following the announcement of the second pay rise.

Trading in the company's shares on the Hong Kong Exchange was suspended on Monday.

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BS its more going through the motions.

What it means is this will make a nice publicity statement.

In reality it will be different, as I have said in my blog and multiple places, Chinese workers are subject to truck acts.

Where they are paid on a sort of debit card system, the debit cards which of course can only be used at the Foxconn stores for food/clothing and dorms. Foxconn complex is gigantic it is a city in itself. When you control all the stores and all the accomodation this will make no difference.

They can increase the wages to $10K a hour, except their food and accomodation will go up just as much if not even more improverishing them even more.

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Makers of iPad and iPhone announce 2 pay rises to workers within the same month period.

Foxconn produces the Mac mini, the iPod, the iPad, and the iPhone for Apple Inc.; Intel-branded motherboards for Intel Corp.; various orders for American computer manufacturers Dell and Hewlett-Packard; motherboards for UK computer manufacturer Zoostorm; the PlayStation 2 and PlayStation 3 for Sony; the Wii for Nintendo; the Xbox 360 for Microsoft, cell phones for Motorola, the Amazon Kindle, and Cisco equipment.

It's not just Apple! Strange how people, and especially the MSM, only highlight that Apple products are made there - wouldn't want to pick on the PS3, WII, Xbox customers too, would they :rolleyes:

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Guest theboltonfury

This is not an example of hyper-inflation at all. Although, it will suit some to think it is.

People had been killing themselves at this factory. The Chinese are not stupid, and by increasing a wage from one paltry amount to another is no big deal for them.

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Makers of iPad and iPhone announce 2 pay rises to workers within the same month period.

http://news.bbc.co.uk/2/hi/world/asia_pacific/10252344.stm

That's for employees who stay for more than 3 months, which at the moment isn't many of them. The idea is that it will reduce staff turnover and increase productivity - more experienced workers tend to be more productive than people who have just started and don't know what they are doing.

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The salary increase announced by Foxconn has significant implications for the entire market. Companies like Foxconn and its EMS rivals have taken over a large chunk of manufacturing activities for the biggest global OEMs and reversing the outsourcing trend will be extremely difficult because OEMs have not only sold their facilities but in many cases have lost the manufacturing expertise needed to maintain a competitive edge.

EMS providers have also developed and nurtured vast supply chain infrastructure to support their operations and make them competitive. At many EMS mega facilities, including the 430,000-employee site Foxconn operates in Shenzhen, third-party supply chain service providers, including component suppliers, distributors and logistics services companies help ensure seamless operations by EMS providers.

Recreating such sites and services will take years if OEMs decide to withdraw outsourcing contracts, which means many equipment vendors are unlikely to seriously consider this option. The implication is that OEMs and their EMS providers will have to figure out how to absorb new wage costs that may mushroom from Foxconn’s decision as other contractors in south East Asia similarly come under pressure to jack up salaries.

It’s hard to imagine Foxconn would not try to pass onto customers the higher costs the salary increase would impose on its operations.

http://www.eetimes.com/news/latest/showArticle.jhtml;jsessionid=AMQE230YJI3RNQE1GHPCKHWATMY32JVN?articleID=225402045

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