Calculating Foxconn’s average wage

The Public Record

Last updated on July 2nd, 2019 at 09:11 pm

Supporters of Foxconn Technology Group often point to the $53,875 average annual wage the company has committed to paying as part of its $3 billion state tax incentive deal. Critics often question whether the company will pay low wages to most workers and still meet the commitment with a few high paid executives.

Recently released documents from negotiations between Foxconn and the state show the Wisconsin Economic Development Corp. initially wanted to place a $100,000 cap on wages counting toward the average. Foxconn argued there should be no cap at all. WEDC expressed a willingness to raise the cap to $200,000 and then to $250,000. When the deal was ultimately signed, the cap was set at $400,000, giving the company additional flexibility in meeting its commitment.

For its part, Foxconn says 70 percent of its workforce will be knowledge workers, presumably with a higher wage, and the lowest starting average wage is nearly $48,000. The company is also paying 100 percent of individual health insurance, according to state documents.

Cap on wages considered for average

Percent of workers Foxconn could pay $30,000 while still averaging at least $53,875

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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