06/02/2010 - Apple Inc. (NASDAQ:AAPL) CEO Steve Jobs publically commented for the first time on the recent spate of worker suicides at Taiwanese iPhone contract manufacturer Foxconn Technology Group, saying, "It's very troubling" and that Apple is "all over" Foxconn to end the unfortunate deaths.Jobs, who spoke at a tech conference Tuesday night in California, added that Foxconn, also known as Hon Hai Group, is "not a sweatshop."
Foxconn officials said today that the company will increase wages by a 30% minimum, which is higher than last week's estimate, as it juggles its reputation while dealing with ten deaths this year.
"It's been a while since we increased wages, hence the decision,'' said Hon Hai spokesman Edmund Ding. However, "raising pay and the suicide issues are two separate matters."
Apple, Hewlett-Packard Co. (NYSE:HPQ) and Dell Inc. (NASDAQ:DELL) are probing Foxconn's working conditions, and Hon Hai chairman Terry Gou has taken precautionary measures including installing nets on dormitory buildings and hiring counselors for workers.
"The situation at Hon Hai is negative for Apple, so they need to work together to try to resolve this," said technology analyst Jenny Lai, who added that almost 70% of Apple's products might be manufactured on Foxconn grounds.
Shares of Apple are trading up 0.16% Wednesday afternoon at $261.26.
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