Foxconn and other firms playing dirty on salary adjustment

Although many manufacturing firms within the Pearl River Delta area, including Foxconn, announced salary increases for employees, in practice, their paychecks remain the same, according to media reports Monday.

A production line worker surnamed Zhang at Foxconn, which announced it would boost its production line workers' salaries from 1,200 ($175.66) to 2,000 yuan ($292.76), up over 66 percent, upon passing a three-month probation period, said that despite of the announcement, his salary in June was nearly one third less than before. He also said that if the situation repeats next month he will quit.

According to Zhang, the reason was that the firm began a tight overtime-work control from May. In March, Zhang made 1,900 yuan, while more than 1,000 yuan was from overtime work, while in June, his salary came down to 1, 3000 yuan. "There will be less overtime work in the future," according to him.

In addition, since the company's announcement of salary readjustment, employee workloads increased, media reports said.

A worker surnamed Dong at an auto parts factory in Foshan, Guangdong Province, said that before the adjustment, workers at the factory earned 850 yuan of basic salary, and 80 yuan of prize for perfect attendance, while after the hike, their basic salary was raised to 920 yuan, but the prize for perfect attendance was cancelled. "Actually, the salary decreased."

Another worker at a toy company said that his boss promised to increase 200 yuan to their wages, but asked them to pay 150 yuan more for their meal.

Media reports also stated that firms have also been put pressure upon as they raise the salaries.

A survey conducted by Lin Jiang, a professor from Sun Yat-sen University, in Dongguan, Guangdong Province, showed that firms in the region can only afford to increase salaries by 3 to 5 percent and leading firms no more than 10 percent.

According to his survey, once it (salary hike) exceeds 5 percent, firms see no other alternative but to leak the pressure down to consumers.

Peng Jianxuan, a boss from a Dongguan-based cloth factory, said he has turned his eye to regions of low labor cost like Vietnam and Indonesia, and other firms have started to do the same.

Lin said that now, even with a salary increase of 10 percent, the employees still feel dissatisfied. And that the country needs to explore ideas on how to balance workers' expectations and firms' profits.