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[MW]Foxconn to pass along rising wage costs to customers - Page 7

post #61 of 72
It'll be a dollar at most on each product...
post #62 of 72
People need to understand that the price associated with something only reflect the distribution of underlying physical wealth, if Foxconn pass to you the extra cost of a motherboard to pay for the workers, the cost of the motherboard did not change, what did change is your wealth is being redistributed to those who are making it. Similarly, when low cost countries are no longer low cost, it does not mean everything's getting expensive, it just mean more money from your wallet is going to their wallets. IN the end, the only real way to get more money in your own wallet is to make the motherboard yourselves.

Work will only return to the United States when the contribution to compensation ratio expected by American workers become equal to those in other countries, its not going to return if you either produce too little for the paycheck you expect, or expect too much. It does not mean low standard of living for Americans, it just mean same standard of living as the rest of the world, whatever that level is.
Edited by iewgnem - 6/9/10 at 2:37pm
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post #63 of 72
Quote:
Originally Posted by Kopi View Post
I don't mind paying an extra 5 bucks if it means people who are in poor working conditions get some kind of improvement.
I don't mind paying a bit extra either but richuwo11 said it so correctly:

Quote:
Originally Posted by richuwo11 View Post
well the money has to come from somewhere... executives sure as hell won't take a pay cut to give their employees a raise.
That's what pisses me off about large corporations - corporate execs who don't give a poop about their employees and are only thinking about how to pad their own wallet. Happened back in the bailout where execs continued to give themselves bonuses on our tax dollars or auto execs flying private jets to beg for money or large layoffs just to balance corporate checkbooks even though the execs' salaries make a larger proportion of corporate expenses. The top 2% of the admin could probably take paycut (from their super high salaries, bonuses, stock options, etc) and not even notice how little is taken from each check to pay for the entire wage increase to support their workers along with their families.

Why should I pay more for their product when it was their mess to begin with? I understand there is an incentive for cheap labor so that the overall cost of the product is lower, but these practices just crosses the line.

Obviously I'm not in the corporate world and never plan to be, but are there classes business people take to be so ruthless? Immorality 101? Am I being too single sided? Any corporate people here who want to share the other side of the story?
    
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post #64 of 72
anyone who could respond would likely not be here. I doubt very few CIO/CTOs hang out on here much less normal business majors. some of those guys are really good people, but a lot of them go to get their MBAs due to greed. there is some extra compensation deserved for running a multi-national corporation but I don't know how well I would sleep if my employees were killing themselves because they were worth more to their families dead.
    
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post #65 of 72
Quote:
Originally Posted by saulin View Post
Why did these idiots killed themselves again? How is that the company's fault? If it's such a bad place to work why not just quit?
They killed themselves because of the factory being horrible, with tiny pay and long hours which is Foxconns fault, and what are they going to do if they quit? Poop money? They don't get unemployment stuff like you would in the US.

Work there for 3 months, and I can guarantee (Unless you're working on GTX 400 series coolers or something, best make it 6 months then) you'd want to die too.
    
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post #66 of 72
Quote:
Originally Posted by AsAnAtheist View Post
There is a flaw with this:

3. No they do not steal jobs from the USA. Why? Americans simply will not work for 50 cent a day, even if they past minimum wage issues. If companies were to have to pay employees minimum wage they would most definitely be bankrupt within a few years.
If the cost for wages increases so will the product cost $.50-$8.00 a day versus $7.25 per hour, 12 hours a day=$87 a day. That would increase product's cost by a lot. Products wouldn't sell, companies would bankrupt.
One of the most lucrative companies in the world pays it's workers minimum wage selling items that cost less than $5 apiece, right here in America, for the last 60 years. The idea that a company can't make a profit by paying for labor is a fallacy. They just don't LIKE to pay for labor, it's one less gulfstream for the guy at the top, one less mansion, etc.
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post #67 of 72
Quote:
Originally Posted by Mjolnir View Post
One of the most lucrative companies in the world pays it's workers minimum wage selling items that cost less than $5 apiece, right here in America, for the last 60 years. The idea that a company can't make a profit by paying for labor is a fallacy. They just don't LIKE to pay for labor, it's one less gulfstream for the guy at the top, one less mansion, etc.
I don't know the guys name but there's some big shot canadian clothing designer that owns an island that gets like 160 bucks for a sweater and pays 5 dollars labor on it. Absolutely labor costs make no difference to the ultra greedy. They only care about quality and people believing that labor is paid for that quality.
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post #68 of 72
Quote:
Originally Posted by Mjolnir View Post
One of the most lucrative companies in the world pays it's workers minimum wage selling items that cost less than $5 apiece, right here in America, for the last 60 years. The idea that a company can't make a profit by paying for labor is a fallacy. They just don't LIKE to pay for labor, it's one less gulfstream for the guy at the top, one less mansion, etc.
Fail.. again...
What company is that, what is their product? I am pretty familiar with large companies in the United States.
Here's my pre-determined list at the company.
1. That company is likely selling higher volumes of those products. High demand... Essentials like toilet paper, clothes, food etc can net some serious profits.
2. The products don't cost nearly as much to produce as an electronic device, and a single employee or a group of employees can probably make hundreds or thousands in a day if a machine isn't doing it for them..
3. We are talking about electronics here.. Not some piece of cloth that cost $15 for some 300 foot roll of cloth.. Most electronics often cost half of their retail cost to manufacturer for PARTS only.

You cannot compare some low cost product-high demand company to an electronics company. Because the simple truth is; electronics are STILL a low demand product.
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post #69 of 72
^point taken. It was an apples to oranges comparison, and you are right, the profit margin for electronics is slim.

Foxconn itself reports a profit margin of a mere 8.7%, but I also know from looking at revenue statements released to the press by Foxconn International Holding Ltd that their 2008 revenue stream was 9.2 Billion dollars with a realization net profits of approximately 120 Million USD.

(2009 Numbers were less rosy due the global downturn,but they are still highly profitable. The 2008 numbers are more reflective of their annual income over the past several years.)

Of course they can't afford to pay their workers a decent salary.
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post #70 of 72
Quote:
Originally Posted by Mjolnir View Post
^point taken. It was an apples to oranges comparison, and you are right, the profit margin for electronics is slim.

Foxconn itself reports a profit margin of a mere 8.7%, but I also know from looking at revenue statements released to the press by Foxconn International Holding Ltd that their 2008 revenue stream was 9.2 Billion dollars with a realization net profits of approximately 120 Million USD.

(2009 Numbers were less rosy due the global downturn,but they are still highly profitable. The 2008 numbers are more reflective of their annual income over the past several years.)

Of course they can't afford to pay their workers a decent salary.
yup.. Now imagine raising salaries from 180~ usd a month to around $1160 for a 40 hour a week/minimum wage per month salary.
Bankruptcy in a year.
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