Apple is subsidizing higher salaries Foxconn workers


Rumor has it that Apple is sponsoring the increase of wages of workers of his contractor Foxconn. Such assumptions made by analysts of Berenberg Bank Adnaan Ahmad (Adnaan Ahmad). His conclusions he bases on an assessment of the gross profits of the parent company Foxconn, Hon Hai Precision and, in fact, Apple. While gross profit Hon Hai grow the company from Cupertino, gross income decreased in the last quarter by a few percent.

According to Mr. Ahmad, reducing Apple's gross profit is due precisely to the fact that the company sponsored by improving working conditions and wages of workers in the factories of its Taiwan partner. In addition, representatives of the Hon Hai reported that this quarter the manufacturer just held talks with partners about changes in the terms of cooperation. It was inevitable and necessary step, because the cost of labor in the Asian market increased by 100%.

As for Apple, the investment expenditures increased from $ 440 million in December 2011 to $ 2.1 billion in June of 2012. Moreover, these costs had nothing to do with the construction of new office buildings in Cupertino. That is why Ahmad and I am confident that Apple were used to subsidize the increased salaries to employees Foxconn production. In this case, it is known that other customers Foxconn, HP and the Sony, has not the best times, in sponsorship to increase the salaries of workers Hon Hai did not participate.

Finally, help your Apple parts suppliers say and CEO of Hon Hai. Mr. Gu Terry (Terry Gou) said earlier this year that his company and Apple have agreed to share the costs of improving working conditions in the Chinese factories of the company. (It was there, as we know, collect iPhone or iPad.) Was not specified, however, how many planned to spend on these goals.

Recently, Foxconn often criticized for poor working conditions in factories, too long working hours and low pay. Apple executives even commissioned an independent audit of the staff of the Association of honest labor (Fair Labor Association). Since the audits within numerous violations, Hon Hai urged to do correct the situation have been found. But the most recent test showed positive results. Working conditions have improved, and the violations have been corrected, obviously, not without the participation and support of Apple.

[via Apple Insider]