Apple and Foxconn are to share the cost of improving working conditions at factories in China, Foxconn's CEO, Terry Gou, has revealed.

Apple and Foxconn are to share the cost of improving working conditions at factories in China, Foxconn's CEO, Terry Gou, has revealed.

 
"We've discovered that this (improving factory conditions) is not a cost. It is a competitive strength," said Gou, according to Reuters. "I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs."
 
It is not clear if this will be an equal split and what is included in the “initial costs,” but it shows that Apple takes this matter seriously and is willing to invest some of its money into the factories where its lucrative products, such as the iPhone and iPad, are made.
 
 
There have been numerous criticisms of the working conditions at these plants, following a spate of suicides in recent years. An investigation by the Fair Labour Association uncovered a number of labour law violations, including excessive overtime and poor living conditions.
 
Both Apple and Foxconn have pledged to address the issue, called by some Apple's “Nike moment,” a reference to the sweat shop allegations facing the shoe maker in the 1990s. Foxconn has already increased wages for staff and plans to hire more workers to cut down on overtime. This has hurt its profits considerably, but if Apple is prepared to take some of the cost, Foxconn should still be able to reach its projected 10 percent revenue growth this year.
 
Source: Reuters