Foxconn paid thousands of dollars to lay off iPhone workers
consequences KailiansheOn Nov. 23, Foxconn Zhengzhou, the world’s largest iPhone assembly plant, pledged to pay 10,000 yuan ($1,400) to each new worker if they agree to quit. These people would be paid an additional 2,000 yuan (US$280) if they boarded a bus to leave the factory immediately.
The decision came after a dispute between workers and security officials on the evening of November 22 over wage policies, welfare benefits and strict anti-Covid-19 precautions. Foxconn confirmed that several groups at the factory protested and took aggressive action. However, they did not provide any further explanations. The payments are seen by the company as a desperate step to end the violence.
Foxconn employees line up for a Covid-19 test at a factory in Wuhan in September 2021. Picture: BUT?
“Some workers are still concerned about Covid-19. He looked forward to returning home. The company understands these concerns,” Foxconn said. The 10,000-yuan package includes an unpaid monthly wage, quarantine allowance, and consumable expenses. The influence group consists mainly of new workers.
Hundreds of Foxconn workers previously protested in a series of videos posted on Weibo and Twitter. Some chanted “pay us” and complained about being forced to share a dormitory with colleagues who tested positive for Covid-19. In one video, a man believed to be a Foxconn representative informs a group of workers about a cash payment if they agree to leave the factory. This person also promised to get cars to people in Henan Province, China, but had to undergo a health check and Covid-19 test.
That said, despite spending money, the protests still burned inside. The compensation only applies to new hires, two workers said, leading others to object.
Foxconn recently saw a spike in infections at its Zhengzhou factory, prompting the company to impose a massive quarantine ban to combat the disease. Last weekend China News Week According to an inside source, the factory employs 100,000 people and constantly offers preferential wages and bonus schemes to hire more workers. However, Foxconn Zhengzhou announced earlier this week that it had to stop hiring staff because it failed to provide hospital beds and isolation areas on time.
Factory instability seriously affects iPhone assembly. Earlier this month, Apple had to announce that the production of the iPhone 14 Pro and 14 Pro Max has been drastically reduced and the expected delivery time has been significantly delayed.
Bao Lam (Track SCMP)