Foxconn to stop offering consolation money to families of suicide victims

12:50, June 09, 2010      

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Following two wage hikes, Terry Gou, president of Foxconn's parent company Hon Hai Precision, announced on June 8 the company will cease consolation payments to the families of suicide victims.

The announcement was made at Hon Hai's shareholder conference held yesterday. Gou also said the management of its workers' dormitories will be transferred to local governments.

"None of the 12 suicide attempts at the Shenzhen complex were a result of poor working conditions or low salaries as has been alleged," Gou said.

Gou said the group will raise wages not only at its factories in Shenzhen in southern China but also at those in other regions, such as Jiangsu and Shandong, depending on the different level of living costs in various regions.

Gou also outlined ambitious and generous plans to help employees launch their own business ventures.

He spent much time sharing his pain over the successive suicide attempts by some employees at his group's Shenzhen complex in Guangdong province.

Responding to concerns that the wage hike will damage Foxconn's competitiveness, Gou said that the wage increase does not account for the largest proportion of the company's overall costs.

Samuel Chin, Chairman of Foxconn International Holdings, Ltd., said that he does not worry that Foxconn will be less competitive after the pay raise.

"We are always facing competition with other enterprises," Chin said.

By People's Daily Online


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