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Foxconn Raises Pay, Cuts Probation for Workers at Apple Factory

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Aug. 24 (Bloomberg) -- Foxconn Technology Group, which pledged to improve pay and conditions on its assembly lines, raised salaries by more than 16 percent at a plant making Apple Inc. iPhones and halved the probation period for new workers.

Monthly salaries for entry-level employees at the factory in Zhengzhou were raised starting Aug. 1 to 1,800 yuan ($283) from 1,550 yuan, the Taipei-based company said today in an e-mail to Bloomberg News. Probation, after which workers get a higher base salary, was cut to three months from six months, it said.

The announcement of higher salaries came two days after the Fair Labor Association said Foxconn was ahead of schedule to improve conditions, while work hours exceeded targets and legal mandates. Apple Chief Executive Officer Tim Cook visited an iPhone factory in Zhengzhou, Henan province, in March, a month after the FLA audits began.

Base-salary increases will range from 250 yuan per month to 350 yuan per month, depending on the worker’s tenure and position within the company, and don’t take overtime into account, Foxconn said. Another 200 yuan per month will be paid to production workers during the peak months of August to November, it said.

To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net.

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