Foxconn, the world’s largest electronics contract manufacturer, is revamping the pay structure at its main production base in southern China in a move that could up-end the cost structure of global electronics production.
Following a 30 per cent wage increase from July 1, the group said workers who reach certain performance standards would now also get an additional 66 per cent pay rise from October 1.
“The monthly wage for all first-line employees and their line leaders and supervisors in Shenzhen will be elevated to Rmb2,000 as early as October 1 2010,” if the workers successfully passed a three-month evaluation period, the company said.
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