Taiwan-based electronics manufacturer Hon Hai Precision Industry, the parent of Foxconn (2038.HK, 2354.TPE), announced last Friday that it will increase worker wages by 20%, Reuters reported. Foxconn’s public image has taken a beating due a spate of suicides at the company’s Shenzhen plant. Another employee attempted to slit his wrists on Thursday, but state media reported that he survived with medical attention. Apple (AAPL.NASDAQ) and other Foxconn clients are investigating working conditions at Foxconn’s plant in Shenzhen, which employs 420,000 people. Citi analysts said that the pay rise could erode the company’s operating profit margin by 10-12%, but other analysts pointed out that salaries for production workers in Taiwan are usually raised in the third quarter anyway, and that labor costs only make up 2% of Foxconn’s total operating costs. Foxconn shares declined 1.2% in Taipei Friday on the news, compared to an overall 1% gain in the broader Taiwan market. Last Wednesday, employees complained that they had been asked to sign a letter stating that Foxconn would pay no more than the legal minimum for injuries incurred outside the workplace, but the company subsequently said it would recall the letter.