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Apple to Help Pay Costs of Improving Foxconn Factories

Karson Yiu/ABC News(NEW YORK) -- Apple and Foxconn will reportedly share the costs to make the sweeping changes to China factories and assembly lines. Previously, Apple's Foxconn supplier in China promised to reduce workers' hours and increase their pay in response to the Fair Labor Association's (FLA) audit of the company.

Foxconn CEO Terry Gou told reporters in China that Apple "sees this as a competitive strength along with us, and so we will split the initial costs."

In response to the FLA report in March, Foxconn agreed to comply with FLA standards, which included better hours and more stable pay for workers. In order to comply, Foxconn agreed to increase the numbers of workers to maintain the same level of output and not lower the income of workers because of the reduced overtime.

Foxconn also raised wages of workers by 25 percent in Febuary. Still, workers told the FLA that the wages still didn't meet their basic needs. Subsequently, Foxconn promised to conduct a cost-of-living audit in locations near the factories. Additionally, Foxconn agreed to pay any worker retroactively who hadn't received overtime wages they were rightly owed.

No details were given on how Apple and Foxconn might split the cost. Apple already financially contributes to bettering the environment at Foxconn, amongst its contributions is the Supplier Employee Education and Development (SEED) program, which aims to educate workers on local laws, their rights, and health and safety.

Apple wouldn't comment further today to ABC News on Gou's statements.

Copyright 2012 ABC News Radio

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