The New York Times: Following a wave of scrutiny, Apple supplier Foxconn has promised to increase salaries and reduce overtime for workers at its Chinese factories. Foxconn employees will see their pay rise as much as 25 percent to about $400 per month.
Observers say that the current economic model relies on low-paid workers to enable western consumers to purchase electronics at low prices. Foxconn’s decision to increase salaries could impact its competitiveness, or it could affect the prices American’s pay for smartphones, computers and tablets.
Foxconn currently employs 1.2 million people in China. The company assembles approximately 40 percent of the smartphones, computers and other electronic devices sold worldwide.