Apple supplier Foxconn quadruples bonuses for workers affected by the China COVID lockdown

As per the sources, we came to know that to ease employee resentment by COVID restrictions and keep workers at the massive iPhone manufacturing facility, Apple supplier Foxconn said that it has increased bonuses on offer for employees at its Zhengzhou plant in central China.

According to the official WeChat account of Foxconn’s Zhengzhou plant, daily bonuses for workers who are a member of a Foxconn unit responsible for producing electronics including smartphones at the site have increased to 400 yuan ($55) from 100 yuan for November.

Foxconn Increases Bonus by Four Times

Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, manufactures 70% of all iPhone shipments globally. The majority of the company’s phones are made in the Zhengzhou factory, where it employs about 200,000 people while having additional minor production facilities in south China and India.

The Zhengzhou plant has been jolted by dissatisfaction with the stringent measures to curb the spread of COVID-19. Over the weekend, some staff left the workplace after ranting on social media about their treatment and accommodations. Foxconn was compelled to follow government orders that put employees in “miserable conditions,” according to a source.

The source added that they declined to be named since they were not authorized to speak to the media because originally there wasn’t enough to eat or drink. Since then, vital supplies have been delivered to the Foxconn campus after the scarcity caused concern.

According to a Foxconn manager who is in charge of more than 1,000 employees, the facility had trouble isolating the infected due to capacity issues. The unnamed manager claimed that panic also grew among employees as a result of social media rumors and beliefs that if they contracted the virus, they faced a danger of illness.

As per the sources, a senior anonymous Foxconn official was cited in an article by the government-backed Henan Daily that first described the rewards system. Although the executive informed the publication there had been no severe illnesses and the business had set up a team to move afflicted individuals to quarantine, Foxconn has not revealed if any employees at the Zhengzhou location had been diagnosed with COVID-19.

When contacted for comment regarding the Henan Daily article, Foxconn did not react right away. The Henan Daily is the province of Henan’s official newspaper, and Zhengzhou serves as its capital.

The sources also claimed that it was unable to immediately get in touch with the Zhengzhou administration by phone or fax for comment. The city announced that teams from the government had been sent early to the plant to assist in risk assessments and situation management.

About the 15,000-yuan Bonus

According to the sources, it states that due to the circumstances, the plant’s ability to produce iPhones in November may decline by as much as 30%, however, Foxconn was attempting to increase output at a different factory in Shenzhen to make up for the loss. On November 1st, Foxconn’s shares (2317.TW) ended 1% lower than the larger index’s 0.4% gain (.TWII).

Foxconn’s notice also claimed that to “gradually resume orderly production” and “thank our fellow employees’ persistence,” individuals who work for more than 25 days in a month may be eligible for a maximum bonus of 5,000 yuan. Previously, the maximum incentive was 1,500 yuan.

The notification further stated that individuals who put up their “full effort” in November, including forgoing any leave, may receive a cumulative bonus of more than 15,000 yuan for the month. Foxconn employees make between 3,000 and 4,000 yuan per month on average.

Despite the bonuses offered, a worker said she had decided to leave since the situation they were in was “horrendous.” She stated that several of her coworkers were persuaded to stay because of the additional pay.

China’s zero approaches towards COVID-19 require localities to act swiftly to curb outbreaks with measures including lockdowns, but it allows factories in affected areas to stay open on condition they operate under a “closed loop” system where staff live and work on-site.

However, businesses have complained about the difficulties of the system and the staff toll. The senior executive cited by the Henan Daily said Foxconn started carrying out daily COVID testing for its staff at the site on Oct. 10, and three days later implemented the closed-loop system by moving staff living off-site into its dormitories.

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