Hon Hai Gives Workers a Raise
Hon Hai Precision Industry Co. has decided to increase wages for its factory workers in China by an average of 20 percent, but the manufacturing giant emphasized the raise isn’t related to a recent spate of employee suicides.
Discussions about a wage increase arose because of concerns about a tight supply of workers in the southern industrial city of Shenzhen where Hon Hai employs more than 400,000 staff, and predate the wave of suicides at the company’s giant Longhau factory there, said Hon Hai spokesman Edmund Ding.
“It is not because of the suicides,” said Mr. Ding. “The discussion has been going on for a long time.”
The company has authorized managers in different Chinese provinces to determine the size of wage increases. “It would be an average 20 percent increase, which means some areas will be more than 20 percent,” Mr. Ding said. The company hasn’t finalized the date to carry out the wage increases, but “it should be very soon,” he added.
