The Foxconn Group, after announcing wage hikes for employees at two production bases in Shenzhen, southern China in early June, has been shifting a large portion of the production lines from Shenzhen to its production bases in Tianjin, northern China, and Wuhan and Chongqing, western China.

The two production bases in Shenzhen currently have 400,000 employees in total and will be combined into one, with only a few relatively profitable production lines to remain.

As the minimum monthly wages in Tianjin and Wuhan are currently 920 yuan (US$135) and 900 yuan respectively, the moves are to reduce labor costs because Foxconn may not raise wages for workers in the two places, the report analyzed.

Foxconn began to stop recruiting new employees in Shenzhen on May 29.

By: DocMemory
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