This goes some way to explaining why employees at Foxconn may be killing themselves. According to The Telegraph, Foxconn pays 110,000 yuan ($19,000) to the family of each person who dies. That’s 10 years’ salary, on average.
Basic monthly wages start at 900 yuan a month ($156), so the 110,000 yuan ($19,000) pay-out to the deceased’s families is almost worth ending your life – if you’re miserable anyway, and have a family to support. I’m not trying to justify it, but the news of the compensation being so large does mean Foxconn has an even bigger problem on its hands than once thought.
CEO Guo Tai-ming apparently promised at the press conference yesterday that he would increase the basic wage by 20 per cent, attempting to give the employees greater motivation to work – and live. [The Telegraph]