Following a number of suicides by workers at the Foxconn plant in southern part of the country, the Chinese Government has decided to conduct an inquiry into the functioning, labor-related problems and work environment on the campus of Taiwanese company.
Already in a damage-control mode, the company, which produces iPads and iPhones for Apple, has announced to more than double the wages of its employees by October.
Recently, a few factories that manufacture parts for Honda in China, too, had announced a double-digit salary hike for their staff.
Such double-digit hikes, experts feel, would soon spell an end to the concept of cheap labor in China and force companies to shell out more to workers for their services.
Foxconn owner, David He, however, does not agree with the idea that hefty hikes at companies like theirs would eventually raise wages in the area.
"The very fact that Foxconn needs to raise wages by 70% to stabilise its workforce, shows how low paid the workers were there", he says.
Their company's goal, asserted He, is to help ensure that its staff develops new skills. If the workers are happy and they agree with the management, the company, too, would not let them down, be in terms of ages or other incentives, added He.