DECEMBER 6, 2004
SPECIAL REPORT -- THE CHINA PRICE
They are the three scariest words in U.S. industry. Cut your price at least 30% or lose your customers. Nearly every manufacturer is vulnerable -- from furniture to networking gear. The result: A massive shift in economic power is under way.
Wage Inflation Officially Comes To China, As Foxconn Doubles Salaries After Rash Of SuicidesThe labor unrest in China has been mounting, mounting, mounting and soon we may be talking about the Mexico Price...
Joe Weisenthal | Jun. 6, 2010,
Chinese electronics manufacturer Foxconn, which makes devices for the likes of Apple and Dell, has taken what may its most aggressive step yet to stop the suicides that have become common at the company.
It is engaging in a big wage hike.
WSJ reports that according to a company announcement, minimum wage workers may see a more than doubling of wages, while others will see at least a 30% hike -- previously the company had indicated a 20% wage hike to deal with the problem, so this is already an expansion.
This is obviously a tough move for the company to have to take given the notoriously low margins facing Chinese manufacturers, plus the fact that the yuan has already been de facto revalued higher due to the collapsing euro.
But obviously the previous situation is untenable, and we wouldn't be surprised to see this move reverberate across the country, and then, by extension across the world, to consumers that enjoy the fruits of cheap Chinese labor.