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