Foxconn Technology Group is moving hundreds of thousands of workers away from the Shenzhen factory where it doubled wages after a rash of suicides, according to China Daily.
iPhone workers, who were the centre of Western media attention, will get to stay in Shenzhen and enjoy higher wages.
Most other workers will be relocated to the Chinese hinterlands where they will work for unspecified wages.
“We’ve got a notice today,” the source said on Wednesday morning, adding that researchers who provide support for Hewlett-Packard servers will move to Tianjin in northern China, along with related production lines. The relocation is to be done in two months.
Other business groups will also move to less expensive Tianjin, Yantai or Wuhan, said the source. But the Taiwanese-owned Foxconn group will keep making iPhones in Shenzhen, the southern economic hub neighbouring Hong Kong.
Looks like China will keep wage inflation at bay for a while yet.
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