Foxconn is offering an $1,800 bonus to workers who reside in iPhone City
(Bloomberg) — Foxconn, partner to Apple Inc. , bonuses of up to $1,800 for existing workers at the Zhengzhou facility, in hopes of maintaining the staffing levels it needs to run the world’s largest iPhone factory.
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The company said that Foxconn, also known as Hon Hai Precision Industry Co., Ltd. Wages will increase by up to 13,000 yuan per month in December and January for full-time workers who joined at the beginning of November or earlier. notice over the weekend. Last week, Foxconn offered similar bonuses to workers who chose to leave its campuses, in large part to take in newcomers who have taken part in violent protests against virus lockdowns.
The unusually generous bonus reflects Foxconn’s urgent need to get assembly lines back up at full speed after a month of dealing with Covid restrictions and unrest that culminated in unrest last week. The Zhengzhou campus, which typically has over 200,000 employees, is where the vast majority of Apple’s iPhone Pro models are assembled. More than 20,000 new employees reportedly left after the protests.
Apple said it is working closely with Foxconn to restore operations and both companies have expressed their commitment to ensuring worker safety.
The iPhone 14 Pro and Pro Max are the most requested phones from Apple this year, offsetting the declining sales of the regular iPhone 14 versions. The Foxconn situation provides yet another reminder of the dangers to Apple of relying on a China-centric mass production machine at a time of unpredictable politics and uncertain trade relations. The US company warned this month that shipments of its latest premium iPhones will be lower than previously expected — just ahead of the peak holiday shopping season.
Analysts at Morgan Stanley cut iPhone Pro production estimates for the current quarter by 6 million units earlier this month. In a worst-case scenario of prolonged shutdowns affecting assembly in Zhengzhou, Foxconn is seen risking up to 36% of iPhone revenue or 20% of its total sales in the quarter.
Click here for a live blog covering unrest in China due to Covid restrictions.
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