Apple And Foxconn's Ethics Hit Your Gadget Prices

Last week Foxconn pushed its starting salaries up from 900 yuan ($143) to 1,800 yuan per month, the latest and biggest in wage upticks that began in 2010. Foxconn did this for one main reason: international attention focused on the firm and associated ethical questions surrounding its treatment of workers. The lens through which this attention was focused bears just one name--Apple--because the iPhone seller is one of the biggest companies in the world, and has recently made very bold steps to improve worker conditions. But Foxconn is actually a key supplier for a laundry list of international electronics firms, from Samsung to numerous household American names. Now two of those firms, tech giants HP and Dell, have warned that rising costs in their Chinese supply chain may result in increased in-store prices for their wares.

Just think about that for a minute, let it simmer in your mind. While it's cooking, here're a few spicy facts to add to the flavor.

1. Apple, facing enormous criticism about unfair treatment of workers in its supply chain--who technically work for a totally different company, in a different nation with a vastly different social and economic background--has tried to improve the situation, and has admitted errors publicly.

2. Foxconn faced controversy in the past over its supposed suicide problem. As a harsh statistic it's worth pointing out its actually much lower than the Chinese average. Infer from this what you like about worker conditions. And remember that many potential employees are battling to work at Foxconn compared to its competitors.

3. In early 2011 it was noted that China already had the third highest labor costs in the emerging Asian economies.

4. China's work ethics, worker conditions, and economic situation are radically different than those in the U.S., influenced by Chinese politics, history, local economic effects, laws, social habits, and tradition.

5. Raw global economics and relative currency values mean that the local equivalen...

[Source: Fast Company]