Taipei, May 11, 2012 (CENS)--Foxconn Group will continue raising the pays of its mainland Chinese employees, which may exceed the minimum monthly wage in Taiwan by the end of this year, said Terry Guo, chairman of Hon Hai Group, Foxconn's parent firm, yesterday (May 10).
Speaking at the groundbreaking ceremony of Foxconn's Chinese headquarters building in Shanghai, Guo noted that China need not become an export country relying on cheap labor. In view of the emergence of hi-tech industry in China, “Foxconn will stay in China for a very long time and will still operate in China, even if the Chinese wage has risen to a level similar to the U.S.,” said Guo.
Following pay adjustment of Foxconn in February, the basic monthly pay of basic-level employees at its Shenzhen factory has risen to 2,200 yuan (NT$10,300), up from 1,800 yuan originally. The pay will be hiked considerably, in order to reach Taiwan's minimum monthly pay at NT$18,780.
Guo stressed that the pay hike has greatly boosted Foxconn's competitiveness, thanks to the increase of employees' identification with the company and creativity in a short time. Meanwhile, it has prompted Foxconn to speed up its factory automation, which will greatly enhance its competitive threshold in three or five years, despite larger capital input initially.
He noted that massive automation can considerably augment the quality of employees and upgrade their works, leaving monotonous and repetitive works to automated machinery and paving the way for further wage hike for employees.
Guo also announced that Foxconn will cut the average overtime work for employees to less than 36 hours a month within one year, so as to comply with mainland China's labor law.
(by Philip Liu)