Additional Payments Being Offered By iPhone Contract Maker Foxconn To Attract New Workers

The largest contract manufacturer of iPhones, Foxconn, is stepping up efforts to recruit workers following unrest at the world’s largest iPhone factory. Employees who successfully refer a friend or family member to work at its Zhengzhou, China plant will receive a $1,000 yuan ($141) bonus.

It comes after video of enraged protests at the factory went viral last week. Apple has warned that due to Covid restrictions, shipments of its new iPhone 14 will be delayed.

Employees at Foxconn who refer a new hire will be paid 500 yuan if the new hire stays with the company for 15 days. They will receive an additional 500 yuan if the recruit stays in the role for a month, according to report by the BBC based on a post on the popular messaging app WeChat.

Foxconn apologized last month for a “technical error” in its payment system following protests at the factory in Zhengzhou over Covid restrictions and claims of overdue pay.

The announcement came after social media videos showed hundreds of workers clashing with security personnel. People were seen jumping a fence outside Foxconn at the end of October, after a Covid outbreak forced the facility to lock down.

The company then hired new employees with the promise of large bonuses.

According to one worker, these contracts were changed so that they “could not get the subsidy promised,” and they were quarantined without food.

Some analysts have warned that the protests and Covid lockdowns have had a significant impact on production at “iPhone City” in the run-up to the holiday shopping season.

“What started out a month ago as 3% iPhone 14 Pro shortages grew to 5% last week and now are roughly 10%+ of overall units with the potential to increase over the coming month depending on any production improvements from Foxconn,” Dan Ives from investment firm Wedbush Securities said.

Although Apple has not specified the extent of the problems at the Zhengzhou plant, it has warned of delays in the delivery of the iPhone 14 Pro and iPhone 14 Pro Max.

The National Health Commission of China reported 36,061 new Covid-19 infections on Wednesday, a decrease from 37,828 new cases on Tuesday.

China’s economic growth is being hampered by the country’s zero-Covid policy and a slowing global economy.

In November, factory activity in the world’s second largest economy fell more than expected. According to the most recent official figures released on Wednesday, the Purchasing Managers’ Index (PMI) fell to 48 from 49.2 in October.

(Adapted from BBC.com)

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