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After a string of suicides in Foxconn's China factories, home to some 400,000 workers who manufacture electronic devices for giants such as HP, Dell, and Apple, the management announced it plans to raise workers' salaries by 20%.\n\nTaiwan-based Hon Hai Precision Industry, the anchor of Foxconn Technology Group, claims the salary increase has been planned for some time, but doesn't say when the raise will be implemented.
The stakes are high for Hon Hai and its Foxconn unit that makes mobile phones for the world's top brands, amid growing calls from activists for a global boycott of products like Apple's latest generation iPhone.
Hon Hai's client list reads like a Who's Who of electronics makers -- from Apple and PC giants Hewlett-Packard Co and Dell, to the world's top cellphone maker Nokia.
"It's a crucial issue that Hon Hai has to deal with right away. If not, Nokia, HP and Apple might cut their orders as pressure against buying their products could be mounting," said Andrew Deng, an analyst with Taiwan International Securities.
Hon Hai and Foxconn have come under fire for their harsh and secretive corporate culture.
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