Foxconn Offers Massive Bonuses to Lure Workers Back After Unrest
Foxconn is offering thousands of dollars in bonuses to entice workers back to its Zhengzhou factory following protests and a Covid-19 outbreak that threaten global iPhone supplies.
Foxconn offers substantial financial bonuses to entice workers back to its massive Zhengzhou, China factory after recent labor unrest and a Covid-19 outbreak disrupt operations. The company provides a 500 yuan payment to returning staff, along with additional bonuses totaling up to 6,000 yuan for those who stay through January, following promises of high December and January wages.
The rare employee protests erupt over a pay dispute, with workers clashing with security after Foxconn blames a "technical error" for delayed bonus payments. The situation worsens as a recent Covid-19 outbreak at the facility causes many employees to flee, creating a severe staffing shortfall at the world's largest iPhone factory.
Analysts warn that this production halt significantly impacts Apple, as the Zhengzhou plant produces over 70% of the global iPhone supply. Evercore ISI estimates that the disruption reduces iPhone demand by 5 to 8 million units in the December quarter, potentially costing Apple up to $8 billion in lost revenue during the crucial holiday shopping season.