Synopsis: The world’s largest Apple iPhone manufacturing hub- Foxconn is located in a city that has been entirely closed down by the Chinese government. Massive worker protests have lately taken place in the Foxconn-owned facility. In reaction to the protests, Chinese officials chose to shut down the city, advising residents to stay at home and only out if absolutely necessary.
Apple has taken a significant hit! China has fully shut down Foxconn – here’s why.
The world’s largest Apple iPhone manufacturing hub is located in a city that has been entirely closed down by the Chinese government. Massive worker protests have lately taken place in the Foxconn-owned facility. In reaction to the protests, Chinese officials chose to shut down the city, advising residents to stay at home and only out if absolutely necessary.
According to an AFP notice, China has apparently instituted a Covid lockdown in a number of Zhengzhou neighbourhoods. This occurred soon following the tense employee protests at the Foxconn plant. The lockdown also puts financial hardship on businesses and the Chinese economy, which is already hurting due to a spike in Covid cases and subsequent lockdowns.
Employees at the Foxconn plant have been dissatisfied since Wednesday. In viral footage, men can be seen smashing security cameras and setting up improvised covid testing labs. However, none of the videos could be independently verified. “Give us our pay,” the employees chant in the video. During the lockdown, they also complained about the poor working conditions.
In reaction to the disturbance, Foxconn acknowledged a “technical error” on their end. According to a Reuters report, the company said that a technology fault occurred during the onboarding process. “We regret an entry error in the computer system and promise that the actual salary is the same as agreed upon and as advertised on the official recruitment posters,” they stated in a statement.
The majority of the demonstrators, according to current reports, have left the area. Furthermore, the company is working to reach an agreement with the remaining employees.
Covid cases are on the rise once more in China. The company has documented a record number of illnesses since the outbreak began. The prolonged lockdowns also harmed the county’s economic prospects. Apple mostly uses Foxconn’s Zhengzhou facility to make its iPhones. The factory is responsible for 70% of all iPhone shipments worldwide.
Foxconn offers $1,400 to workers who cease protesting and leave ‘iPhone City.’
The Apple supplier has apologised, explaining that the pay mistake was due to a “technical fault.” The offer is equal to one or two months’ pay.
Foxconn has offered workers a settlement of 10,000 yuan ($1,400) in an attempt to halt demonstrations at the site, encouraging freshly hired staff to quit and then leave its iPhone assembly factory in Zhengzhou, central China. According to CNN, the payment, which is equivalent to one or two months’ salaries, comes after violent demonstrations erupted Tuesday over withholding pay and working conditions resulting from a severe covid lockdown.
The offer was reportedly made by Apple’s manufacturing partner via a text message sent from its human resources department on Wednesday, requesting that workers “please return to your dormitories” and promising to honour pay agreements. The company offered 8,000 yuan (approximately $1,120) to workers who agreed to leave the factory, and another 2,000 yuan (approximately $280) after they boarded buses to leave.
Foxconn started a recruitment drive, and over 100,000 people applied to fill the positions. According to a document outlining wage packages obtained by CNN, new workers were guaranteed a 3,000 yuan (about $420) subsidy after 30 days, with a second 3,000 yuan incentive to be given after 60 days.
On Tuesday, workers protested after learning that their bonus payments will be postponed until next year, with the first subsidy payment due on March 15th and the second in May. “The new recruits had to work longer days to obtain the promised incentive, so they felt tricked,” one worker told CNN.
Foxconn has recently admitted that the variations in payment dates were caused by a misunderstanding. “Our team has been investigating the situation and determined a technological fault occurred throughout the onboarding process,” Foxconn told Reuters. “We regret for an entry error in the computer system and promise that the actual salary is the same as agreed upon and advertised in the official recruitment posters.” Apple, Foxconn’s largest customer, has also stepped in, telling CNN that it was “working closely with Foxconn to ensure their employees’ concerns are addressed.”
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