WisDems: Another promise broken: As costs go up, wages will go down for Foxconn workers

Contact: TJ Helmstetter, tjh@wisdems.org

Recent reporting by Arthur Thomas for BizNews, detailed below, shows that Foxconn is seeking “flexibility” in meeting its average wage target, which will be artificially boosted by including high-end executive pay in the “average” calculations.

This news, of course, comes after we know that Foxconn has already scaled back its Mount Pleasant factory and after costs to taxpayers have gone up. Meanwhile, Foxconn continues to face criticism over its pollution and water use; treatment of its workers; and its use of eminent domain to kick people out of their homes.

“First the costs go up, then the wages come down, what’s next? Scott Walker’s Foxconn deal is taking taxpayer money away from Wisconsin families that should be used for our roads and schools. Instead, their hard-earned dollars are going to a foreign corporation that is already breaking its promises before the factory is even built.” — TJ Helmstetter, DPW spokesperson for 2018 governor race 

BIZ TIMES: Foxconn sought flexibility in meeting average wage target

KEY POINTS: 

  • Foxconn promised that it would create 13,000 jobs with an average wage of $53,875 in exchange for $3 billion in state tax incentives.
  • But the deal did not include how to calculate the average wage.
  • Foxconn wanted no limit on the wages counted as part of the average so it could include huge executive salaries — meaning that typical workers could make significantly less than $53,875 and Foxconn could still hit the “average.”
  • After negotiation, the state and Foxconn agreed to a $400,000 cap — which still allows them to include huge executive salaries.
  • What that means: Foxconn can actually pay 93% of workers $30,000 — far less than the agreed-upon “average” of $53,875. 
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