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Foxconn pays $1,400 to quell protests at China iPhone factory


Apple’s manufacturing partner, Foxconn, has offered a payment of 10,000 Rmb ($1,400) to newly hired employees who choose to leave the iPhone factory and pledged to honor pay agreements, in an effort to force to quell the unrest after workers clashed violently with police.

Foxconn Management proposed a pay plan for workers on Wednesday night, requiring employees to return to their dormitories, according to a video shared with the Financial Times. The move appeared to help quell a tense situation at the iPhone factory in Zhengzhou, China, on Thursday morning.

The payment, intended to cover the amount owed to new workers for quarantine, transportation to the factory, and hours worked, was officially announced in a notice to workers. Those who implement the deal will receive Rmb 8,000 when they submit their resignation and Rmb 2,000 remaining after boarding the bus home.

“We are happy,” said one worker who chose to do the deal and left due to concerns about the Covid-19 outbreak at the factory and the uncertainty surrounding bonuses.

violent protest broke out at Apple’s largest iPhone factory because of the promised bounty. Foxconn apologized for the miscommunication and pledged to honor its commitments.

“Our team looked into the issue and discovered a technical error occurred during the implementation,” said Foxconn. “We apologize for the input error in the computer system and ensure that the actual salary is the same as agreed and the official recruitment poster.”

Apple says it has team members working at the iPhone factory. “We are reviewing the situation and working closely with Foxconn to ensure the concerns of their employees are addressed,” the company said.

Foxconn’s offer, which equates to one to two months’ salary, could add to the strain on labor shortages at the Zhengzhou factory, which has struggled to recruit workers for assembly lines in the country. long time. The outbreak of Covid and the mass exodus of workers last month overcome pandemic restrictions.

“Foxconn promised large sums of money – up to Rmb 15,000 per month – to quickly recruit thousands of new workers, but it seems that did not materialize. That’s why workers are so frustrated,” said Jenny Chan, an expert on Chinese labor at Hong Kong Polytechnic University.

“The company is known for claiming high salaries then breaking promises,” she said. Foxconn on Wednesday said it always fulfills its obligations.

On Thursday, authorities in Zhengzhou announced a blockade of most of the city of 13 million people as Covid cases increased. China reported more than 30,000 new infections nationwide on Wednesday, exceeding the number of infections recorded at the peak of the outbreak in Shanghai this spring.

Analysts estimate that about 60% of all iPhones are manufactured at the Zhengzhou factory, which employs more than 200,000 workers. They believe that Covid-related problems at the factory will make investors more concerned about Apple’s supply chain risks in China.

apple this month warn investors about delays shipping high-end iPhone 14 models because the Zhengzhou factory “is operating at a significantly reduced capacity”.

Video of Wednesday’s clashes showed chaos at the factory as hundreds of policemen in white protective gear confronted workers, many of whom were severely beaten. At least one police car was overturned.

By Wednesday night, dozens of police buses carrying officers in white protective suits and riot gear had arrived at the factory.

The clashes have largely been censored in Chinese media, and domestic social media platforms have deleted pictures and videos posted online.

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