June 8, 2010 / 1:59 AM / 7 years ago

Foxconn confirms wage rise for Shenzhen staff

<p>Workers look on from a Foxconn logo near the gate of a Foxconn factory in the township of Longhua, Guangdong province May 29, 2010.Stringer</p>

HONG KONG (Reuters) - Foxconn International confirmed on Tuesday another salary rise for staff on its Shenzhen production lines but said it was not clear how the adjustment would impact its 2010 operating results.

The increase in operating costs due to the wage increase may impact the company's results but could also be offset by increased revenue or cost reduction in other areas, Foxconn said in a filing to the Hong Kong stock exchange.

Foxconn said based on a recommendation by its controlling shareholder Hon Hai it had approved a proposal to further increase salaries of its staff on Shenzhen production lines, subject to a three-month work performance assessment, after its recent move to raise China staff salaries by 30 percent effective June 1.

The criteria for the performance assessment have yet to be decided, it said.

Hon Hai Precision Industry, the world's biggest contract electronics manufacturer with a list of clients including Apple Inc, Dell Inc and Hewlett-Packard Co, said late on Sunday that production line workers at Foxconn's Shenzhen hub would be able to earn 2,000 yuan ($293) a month from October if they passed a three-month performance review.

Trading in Foxconn shares, which was suspended on Monday, will resume on Tuesday.

(US$1=HK$7.8)

Reporting by Donny Kwok; editing by Jonathan Hopfner

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