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ken_ichikawa

Chinese Wage Hyperinflation Over!

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Mercillessly taken from El Reg

Foxconn – the massive Taiwan-based contract manufacturer whose clients include Apple, Dell, HP, Intel, Sony, and others – will shutter its mainland China operations in a restructuring that could move as many as 800,000 workers into the ranks of the unemployed.

This news comes by way of the Chinese-language news site ON.CC — a Google translation is available here — and couldn't immediately be independently verified.

The announcement came at a shareholders meeting of the Hon Hai Group, Foxconn's parent company. Chairman Terry Gou said that production would be withdrawn from mainland China and shifted to Taiwan, Vietnam, and India. There are currently 800,000 Foxconn workers on the mainland, and if all Foxconn manufacturing there eventually ceases, they would all be out of work.

Foxconn has been under fire recently for a series of suicides at its Shenzhen, China factory. Gou said that the Chinese government had sent 200 inspectors to the plant, which employs somewhere between 270,000 (Financial Times) and 400,000 (Steve Jobs) workers, and that Foxconn management had been exonerated.

Guo also said that the ongoing rash of suicides could be of the copy-cat variety, fueled by media coverage. He also noted that the company had suspended death benefits to remove that impetus for jumping, the favored method of suicide not only at Foxconn's Shenzhen plant, but in urban China in general.

In another bid to improve conditions at its mainland Chinese factories, Foxconn announced two substantial pay raises: a 30 per cent across-the-board raise announced last week, and a 66 per cent performance-based raise to go into effect in October.

According to ABC News the company provided no details on how performance would be evaluated. ®

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Guest DissipatedYouthIsValuable

"Ok, we give payrise. After factory shut. Hahaha. You lose. No death benefit."

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"Not prepared to be worked to death? Ok, we'll find someone else who will"

How is the new ipad by the way?

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"Not prepared to be worked to death? Ok, we'll find someone else who will"

How is the new ipad by the way?

you asking me about the Ipad? I don;t own anything from apply, I still use an Irish made Dell from a long time ago.

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This is what happens when slaves have the audacity to demand more than their rice and board.

So much for the globalised enrichment of the 2nd/3rd world. Oh well, at least there's 800,000 more workers for the fields the chinese government haven't stuck a powerplant on... oh wait a minute...

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Chairman Terry Gou said that production would be withdrawn from mainland China and shifted to Taiwan, Vietnam, and India.

Maybe this will finally shut up the apologists for globalisation, who keep telling me that one day we will reach the promised land(-presumably when there are no more bodies to feed into the grinder.)

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Guest sillybear2

They don't need to employ 800k people, they only did so because labour costs were cheaper than the costs of automation.

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Mercillessly taken from El Reg

Foxconn – the massive Taiwan-based contract manufacturer whose clients include Apple, Dell, HP, Intel, Sony, and others – will shutter its mainland China operations in a restructuring that could move as many as 800,000 workers into the ranks of the unemployed.

This news comes by way of the Chinese-language news site ON.CC — a Google translation is available here — and couldn't immediately be independently verified.

The announcement came at a shareholders meeting of the Hon Hai Group, Foxconn's parent company. Chairman Terry Gou said that production would be withdrawn from mainland China and shifted to Taiwan, Vietnam, and India. There are currently 800,000 Foxconn workers on the mainland, and if all Foxconn manufacturing there eventually ceases, they would all be out of work.

Foxconn has been under fire recently for a series of suicides at its Shenzhen, China factory. Gou said that the Chinese government had sent 200 inspectors to the plant, which employs somewhere between 270,000 (Financial Times) and 400,000 (Steve Jobs) workers, and that Foxconn management had been exonerated.

Guo also said that the ongoing rash of suicides could be of the copy-cat variety, fueled by media coverage. He also noted that the company had suspended death benefits to remove that impetus for jumping, the favored method of suicide not only at Foxconn's Shenzhen plant, but in urban China in general.

In another bid to improve conditions at its mainland Chinese factories, Foxconn announced two substantial pay raises: a 30 per cent across-the-board raise announced last week, and a 66 per cent performance-based raise to go into effect in October.

According to ABC News the company provided no details on how performance would be evaluated. ®

Well who'd of thunk it!

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Mercillessly taken from El Reg

Foxconn – the massive Taiwan-based contract manufacturer whose clients include Apple, Dell, HP, Intel, Sony, and others – will shutter its mainland China operations in a restructuring that could move as many as 800,000 workers into the ranks of the unemployed.

This news comes by way of the Chinese-language news site ON.CC — a Google translation is available here — and couldn't immediately be independently verified.

The announcement came at a shareholders meeting of the Hon Hai Group, Foxconn's parent company. Chairman Terry Gou said that production would be withdrawn from mainland China and shifted to Taiwan, Vietnam, and India. There are currently 800,000 Foxconn workers on the mainland, and if all Foxconn manufacturing there eventually ceases, they would all be out of work.

Foxconn has been under fire recently for a series of suicides at its Shenzhen, China factory. Gou said that the Chinese government had sent 200 inspectors to the plant, which employs somewhere between 270,000 (Financial Times) and 400,000 (Steve Jobs) workers, and that Foxconn management had been exonerated.

Guo also said that the ongoing rash of suicides could be of the copy-cat variety, fueled by media coverage. He also noted that the company had suspended death benefits to remove that impetus for jumping, the favored method of suicide not only at Foxconn's Shenzhen plant, but in urban China in general.

In another bid to improve conditions at its mainland Chinese factories, Foxconn announced two substantial pay raises: a 30 per cent across-the-board raise announced last week, and a 66 per cent performance-based raise to go into effect in October.

According to ABC News the company provided no details on how performance would be evaluated. ®

Not sure I find this particularly plausible.

Indian workers might be cheap but those I have met working in IT certainly show no sign of wanting to endure 'karoshi'.

Both countries have seen rapid rises of wages for skilled workers in recent years.

Edited by realcrookswearsuits

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Not sure I find this particularly plausible.

Indian workers might be cheap but those I have met working in IT certainly show no design of wanting to endure 'karoshi'.

Both countries have seen rapid rises of wages for skilled workers in recent years.

Why do you think we want to conquer North Korea? 23 million instant slave labour force.

Also you seem to imply Karoshi is a choice, it isn't work hard or get fired, work yourself to death or get fired, stay 20 hours a day in the office or get fired.

Edited by ken_ichikawa

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Not sure I find this particularly plausible.

Indian workers might be cheap but those I have met working in IT certainly show no sign of wanting to endure 'karoshi'.

Both countries have seen rapid rises of wages for skilled workers in recent years

More fresh meat available in India;

They call it the 'demographic dividend.'

It is expected that, in 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan; and, by 2030, India's dependency ratio should be just over 0.4.

http://news.bbc.co.uk/1/hi/world/south_asia/6911544.stm

The idea that globalised capital running wild would ever bring about real global prosperity is being revealed for the sham it really is- the complete absence of even minimum terms and conditions for labour in things like NAFTA make it clear what the intention was- global wage and conditions arbitrage to push down labour and social costs of doing business.

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"Not prepared to be worked to death? Ok, we'll find someone else who will"

How is the new ipad by the way?

Breathtaking. The Chinese are now considered too expensive.

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Not sure I find this particularly plausible.

Indian workers might be cheap but those I have met working in IT certainly show no sign of wanting to endure 'karoshi'.

Both countries have seen rapid rises of wages for skilled workers in recent years.

They aren't looking at employing people with IT degrees. Think "peasant with nimble fingers."

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Breathtaking. The Chinese are now considered too expensive.

Actually reading a news article from HK today the pay rise is actually a pay cut, as while wages have risen X amount the productivity targets have also gone up by a bigger %.

People already could not hit the productivity targets before, and thus will get fined daily for not hitting their productivity targets and thus will end up being paid even less.

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Guest sillybear2

"We give you 200 yuan pay rise, but rice in canteen now 50 yuan more, ha ha, we win"

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Actually reading a news article from HK today the pay rise is actually a pay cut, as while wages have risen X amount the productivity targets have also gone up by a bigger %.

People already could not hit the productivity targets before, and thus will get fined daily for not hitting their productivity targets and thus will end up being paid even less.

:lol: Knew there had to be another angle to the whole thing.

Don't ya just love the free market? :rolleyes:

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If loads of countries are running massive deficits presumably there are pretty big surpli out there in the public an private finances of other countries!

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Actually reading a news article from HK today the pay rise is actually a pay cut, as while wages have risen X amount the productivity targets have also gone up by a bigger %.

People already could not hit the productivity targets before, and thus will get fined daily for not hitting their productivity targets and thus will end up being paid even less.

An excellent way to have a highly motivated workforce.

Perhaps the Govt should learn something from this and cut costs. Give everyone a pay rise, but increase productivity targets by 500% and then fine people for not hitting them.

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An excellent way to have a highly motivated workforce.

Perhaps the Govt should learn something from this and cut costs. Give everyone a pay rise, but increase productivity targets by 500% and then fine people for not hitting them.

They used to do that at Hallidays where I worked, the bonuses were unattainable, and whenever we went into a pay review Nigel would breathe in deeply, "I'm sorry to say but our outsourcers in India are getting really good so why should we pay you more?"

0% rise (3% cut more like) this year.

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Guest sillybear2

They used to do that at Hallidays where I worked, the bonuses were unattainable, and whenever we went into a pay review Nigel would breathe in deeply, "I'm sorry to say but our outsourcers in India are getting really good so why should we pay you more?"

0% rise (3% cut more like) this year.

You just lazy, good workers hit targets long time.

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They used to do that at Hallidays where I worked, the bonuses were unattainable, and whenever we went into a pay review Nigel would breathe in deeply, "I'm sorry to say but our outsourcers in India are getting really good so why should we pay you more?"

0% rise (3% cut more like) this year.

Of course you were in full agreeance?

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