Foxconn, Apple’s supplier, offers big bonuses to ease labor shortage

Foxconn, Apple’s supplier, offers big bonuses to ease labor shortage

Foxconn, Apple’s supplier, offers big bonuses to ease labor shortage

Apple supplier Foxconn is quadrupling daily bonuses to workers in order to retain enough employees to keep putting together iPhones, reports Reuters. In November, Foxconn offered workers at its Zhengzhou factory a bonus of 400 yuan per day ($55), 4 times more than the regular bonus of 100 yuan.

Foxconn, Apple’s supplier, offers big bonuses to ease labor shortage
Employees who work more than 25 days can get a maximum bonus of 5,000 yuan per month, up from 1,500 yuan, and those who make a “full effort” can get a bonus of more than 15,000 yuan. Most workers earn between 3,000 and 4,000 yuan per month.

Foxconn employs about 200,000 people in Zhengzhou, the factory used in most of its business Iphone Produce. Foxconn is responsible for assembling about 70 percent of the iPhones sold by Apple, and has been struggling to keep employees on site due to the COVID shutdowns.

Due to China’s no-coronavirus policy, Chinese cities are required to quickly quell the outbreak through restrictions, and with the spread of COVID in Zhengzhou, workers wanted to go home to avoid being caught in the factory in the event of a stricter lockdown. Workers were also unhappy with restrictions imposed at the factory, such as cafeteria closures and lack of supplies causing panic.

Personnel problems at Zhengzhou factory may cause “iPhone” production to drop As much as 30 percentthough Foxconn is mitigating supply issues by offering bonuses and increasing production at another plant in Shenzhen.

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