Apple Cites Obamacare in Cutting Foxconn Workers' Pay
In an e-mail addressed to the over half a million employees at Foxconn facilities in China, Apple CEO Tim Cook announced that worker pay in the facilities would be slashed by 40% to compensate for the expected cost increases of the Affordable Care Act.
"It is no longer economically feasible to be able to pay such high wages and still be able to make our profits under the new act," read the e-mail, written in English and Chinese Simplified. "Belts must be tightened across the board, and all of us must pay our fair share."
Cook announced that the new base wage of Foxconn workers would be 750 yuan per month, lower than even the 900 yuan per month that the workers were paid before Apple raised their wages in a response to crippling labor conditions in the plants. A spokesman for Apple addressed this issue on the condition of anonymity: "We knew we couldn't keep paying the workers the new wage and keep our profits as they were, so something had to give. We also figured that the suicides that resulted would enhance our profit margin."
Also in the e-mail, Cook announced that Foxconn had eliminated overtime, and that no employee could work more than 60 hours per week, a sharp decline from the current 72 hours per week. To compensate for this, all breaks would be eliminated; workers would be supplied with a bucket to allow them to do their business right on the line.