The extraordinary move by Foxconn Technology Group is meant to placate unhappy new employees who were instrumental in the violent protests that shook the biggest iPhone manufacturer in the world.
In an extraordinary move meant to placate dissatisfied new hires who were instrumental in the violent protests that shook the largest iPhone plant in the world, Foxconn Technology Group has started providing 10,000 yuan ($1,400) to any employees who opt to quit.
The principal global production partner for Apple Inc. stated in an online announcement that the money, which will be paid out in two payments, will make it easier for employees to get home.
The majority of the 200,000+ employees at Foxconn’s primary factory in Zhengzhou are from other parts of the province or nation. A Foxconn official said on Thursday that the move also aimed to remove recent hires that the local government had assisted in hiring and who frequently exacerbated tensions among the ranks. The representative noted that although it would take some time, the organization will replace departed employees.
The reward, which typically exceeds a month’s pay for Foxconn’s blue-collar workers, is likely to appease some workers after they staged a rare violent protest on Wednesday that brought attention to the negative economic and social effects of Xi Jinping’s Covid Zero plan.Following almost a month of stringent restrictions designed to contain an outbreak of Covid, hundreds of workers and security guards engaged in a violent altercation early on.
Unrest was sparked, in part, by workers learning that without their continued presence at the factory until March, they would not receive the greater earnings they had been promised. People who were displeased with the restriction would receive the 10,000 yuan payout to cover their return home travel expenses.
Foxconn’s workforce is growing increasingly dissatisfied, which poses a danger to further halt production at a facility that produces the majority of Apple’s flagship products for export worldwide. The American company has already issued a warning that it will ship fewer devices than expected during the crucial holiday quarter, and that wait times for iPhones may in some cases extend past Christmas.
According to a statement from the US business, “We have Apple team members on the ground at our supplier Foxconn’s Zhengzhou factory.” To ensure that Foxconn’s employees’ issues are taken into consideration, “we are analyzing the situation and working closely with Foxconn.”
In the early hours of Wednesday, workers poured out of the dorms, shoving and pushing past the white-clad guards who were greatly outnumbered by them. Another tape showed a group of white-suited individuals beating a victim who was lying on the ground with sticks. As crowds of people pushed through barriers, onlookers shouted “fight, fight!”
The group started shaking the moving police car while yelling gibberish at one point.
Overnight, there was a protest against unpaid pay and possible disease transmission. Anti-riot police were called to the location after several workers sustained injuries in order to restore order.
By Wednesday night, the plant was operating normally once more, according to a statement from Foxconn. However, the demonstrations brought attention to how Xi’s program, which relies on quick lockdowns to eradicate the disease wherever it appears, is burdening the economy and upending large portions of the global supply chain.
The Foxconn incident serves as yet another reminder of the risks for Apple of relying on a sizable production system centered in China at a time of erratic policy and tumultuous trade relations.
Beijing recently issued new directives ordering officials to minimize disruption and use more targeted Covid controls, but escalating outbreaks in major cities have forced local authorities to once again reach for strict curbs.
After the violence in Zhengzhou, the local government declared “mobility controls” over some of the city until November 29. This effectively put the area under lockdown and could make it more difficult to find new employees to replace those who leave.
