HONG KONG (MarketWatch) -- Foxconn International Holdings will ask customers to help shoulder the added cost burden arising from its pledge to increase wages at the contract manufacturer's factories in China, according to media reports Wednesday...
The wage hikes come in the aftermath of a number of suicides at Foxconn's production facilities in Shenzhen, where as many as 10 staffers have died in the past five months amid accusations of overly long work shifts. See related story on Shenzhen suicides and Foxconn management.
The higher costs would likely be a factor in annual contract negotiations now getting underway. The talks, which will set prices for next year's orders on products ranging from the iPhone to the PlayStation, are expected to be completed within the next quarter, with "as much as possible" of the rising wage bill to be passed along, Samuel Chin, Foxconn's chairman, was cited as saying by the FT.