As Foxconn Electronics (Hon Hai Precision Industry) has recently revealed it will raise its minimal salary 16-25%, supply chain players pointed out that Foxconn's salary rise is making the existing labor shortage problem even worse; however Foxconn has noted that the company's major development directions in the future will be to reduce employees' working hours, while still maintaining their income.

In June 2010, Foxconn already raised its salary once and provided employees that pass an evaluation test a further raise in October of 2010.

Supply chain players also pointed out that if Foxconn continues to raise its salary, they may either be unable to attract workers or unable to afford the related cost and the issues could seriously impact the supply chain.

Source:digitimes