Foxconn raises wages, offers worker bonuses to assuage discontent over COVID curbs: report


Apple supplier Foxconn has raised wages and is paying bonuses to workers at its Zhengzhou factory in central China, Chinese government-backed media have reported, as it works to quell public discontent. employees on site due to COVID restrictions.

Daily wages for employees, who are part of a Foxconn unit responsible for manufacturing electronic devices, including smartphones at the site, were raised to CNY 100 (about 1,130 rupees) between October 26 and November 11, the Henan Daily newspaper quoted an unnamed official from the integrated unit of the company’s digital products business group as saying on Monday.

The company, formerly Hon Hai Precision Industry Co Ltd, is also offering all site employees who have worked normally since October 19 and complied with virus prevention measures a bonus of CNY 50 (about Rs 570) per day, the person said.

Foxconn did not immediately respond to a request for comment on the Henan Daily article. The Henan Daily is the official newspaper of Henan Province, of which Zhengzhou is the capital.

Foxconn is Apple’s largest iPhone maker, producing 70% of iPhone shipments worldwide. It makes most of the phones from the Zhengzhou factory where it employs around 200,000 people, although it has other smaller production sites in India and southern China.

The Zhengzhou factory has been rocked by dissatisfaction with strict measures to curb the spread of COVID-19, with several workers fleeing the site over the weekend.

Reuters reported on Monday, citing a source, that production of iPhone handsets in November could drop 30% at the factory due to the situation and that Foxconn was working to increase production at another plant in the city of Shenzhen to make up for the shortfall. .

© Thomson Reuters 2022


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