China's "Living Wage"

Home | China Law Blog | China’s “Living Wage” Just read a CNN article, When will workers share in Apple's wealth? This article was written by Scott Nova, executive director of the Worker Rights Consortium, a "labor rights-monitoring organization that investigates working conditions in factories around the world." Nova attacks Apple on many fronts in his article, but it is the following that really got me thinking: And if Apple genuinely "cared about every worker," it would pay every worker a living wage -- enough for workers to achieve a minimally decent standard of living, support their families and even save a bit toward a better future. Today, barely 1% of the retail price of an Ipad goes to the workers who make it; 33% goes to Apple's profits. Apple's profits are so high, and its global labor costs so low, that it could triple the wages of its 700,000 manufacturing workers and help them achieve a living wage (just a few dollars an hour in China), and still make $40 billion a year. A wage increase of 16% to 25% at Foxconn, announced today as Apple's public relations blitz reaches a crescendo, doesn't come close. Where did Nova get his numbers regarding what constitutes a "living wage" in China. And what does constitute a living wage in China? Does that not depend on the city? Does it not matter that Foxconn typically provides its workers with room and board, in addition to their salary? Again though, what constitutes a "living wage" in China? What do you think? UPDATE: Stan Abrams at China Hearsay did a post, Profit Sharing and China's Living Wage [link no longer exists], taking Nova to task for, among other things, using "squishy language" and for the following: This [calling for Foxconn to pay its workers a decent wage] sounds great and quite reasonable, but of course the writer has no idea what “minimally decent” means in China, in Shenzhen or anywhere else. He doesn’t know what it takes to support a family here, and I guarantee that the complex matters of health, education and housing expenditures and their related effects on savings are matters he did not research prior to writing the Op/Ed. FURTHER UPDATE (2-24-2012): The New York Times just came out with an article, How Much Do Foxconn Workers Make? that seeks to discern exactly what Foxconn employees make. Check Out Our China Law Services Share Twitter Facebook LinkedIn E-mail Comment Dan Harris Dan Harris is a founding member of Harris Sliwoski, an international law firm where he mostly represents companies doing business in emerging market countries. Most of his time is spent helping American and European companies navigate foreign countries by working with the international lawyers at his firm in setting up companies overseas (WFOEs, Subsidiaries, Rep Offices and Joint Ventures), drafting international contracts, protecting IP, and overseeing M&A transactions. In addition, Dan writes and speaks extensively on international law, with a focus on protecting foreign businesses in their overseas operations. He is also a prolific and widely-followed blogger, writing as the co-author of the award-winning China Law Blog. Harris Sliwoski Attorney Read more posts [email protected] Read More China Business Related Posts September 15, 2026 Your AI-Drafted China Contract Says It Needs a Lawyer. Listen to It. September 11, 2026 Forensic Accountants in China Business Litigation: How True Numbers Can Tell the Wrong Story September 4, 2026 China NNN Agreement or Trademark Registration? You Usually Need Both September 1, 2026 AI Didn't Replace Lawyers. It Gave Us the 48-Page Contract. August 27, 2026 Do I Need a China NNN Agreement or a China Manufacturing Agreement? Usually Both. August 26, 2026 China’s New Overseas Investment Rules: Can Your Chinese Investor Actually Get the Money Out? August 24, 2026 International IP Protection for Startups: What to Protect and Where August 19, 2026 The Documents Are the International Deal August 19, 2026 China Supplier Fraud in Yiwu: Why We Recommended the Police, Not a Lawsuit August 17, 2026 China Trademark Registration: Why U.S. Companies Need More Than a Filing Agent August 10, 2026 Buying Expensive Equipment from China: Seven Questions to Answer Before You Pay August 7, 2026 DDP Shipping Risks: What Boise Cascade’s Guilty Plea Means for U.S. Buyers August 6, 2026 Protecting Your Artwork Internationally: What Artists Need to Do Before the Work Travels August 5, 2026 Your China Employee Signed the Vacation Policy. You Can Still Lose. July 29, 2026 The RedNote Contract Lesson for Companies Doing Business in China Leave a comment Cancel reply