Foxconn will pay workers $1,400 each to stop protests and quit iPhone City in Zhengzhou

Foxconn will pay workers $1,400 each to stop protests and quit iPhone City in Zhengzhou

Foxconn, Apple’s supplier, apologized for the delay in premiums, saying it was due to a “technical error”. Workers are promised compensation of one or two salaries if they stop protesting, resign and leave the Zhengzhou factory.

The factory, also called iPhone City, was forced to shut down in October following the outbreak of COVID-19 in accordance with China’s strict “zero-covid” policy. But the New York Times article noted that due to a new outbreak of the coronavirus infection, some Foxconn workers were quarantined on the premises of the factory with limited supplies of provisions.

This eventually led to a mass exodus of workers, and Foxconn launched a new recruitment campaign that saw more than 100,000 people sign up for jobs. New employees were promised a bonus of 3,000 yuan (about $420) if they worked for 30 days and another bonus after 60 days, according to a document outlining the salary packages.

The protest at the plant erupted on Tuesday when workers were told that payments would be delayed until next year, with the first payment due on March 15 and the second in May. Videos circulating on social media show law enforcement officers in protective suits pushing and hitting protesters with pickaxes and metal batons.

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Foxconn to pay workers $1,400 each to stop protests and quit iPhone City in Zhengzhou
Source: CNN

Some workers were seen tearing down fences, throwing bottles at police officers, and smashing and overturning cars.

Foxconn to pay workers $1,400 each to stop protests and quit iPhone City in Zhengzhou
Source: CNN

“The new employees had to work more days to get the promised bonus, so they felt cheated,” one employee told CNN.

Foxconn has now admitted that the changes to the payment dates were in error.

“Our team has been looking into this matter and discovered a technical error during the registration process. We apologize and ensure that the actual payments are consistent with the agreed and official promises in the advertising campaign,” Foxconn said in a statement.

Apple – Foxconn’s largest customer – also spoke out, saying in a statement released to CNN that the company is “working closely with Foxconn to ensure that its employees’ concerns are resolved.”

Foxconn offered workers 10,000 yuan ($1,400) in compensation in an attempt to end protests at the plant. The company will immediately pay 8,000 yuan (about $1,120) to workers who leave the factory and another 2,000 yuan (about $280) after they board buses to leave the plant.

Apple’s manufacturing partner reportedly offered the solution Wednesday via text messages sent by human resources.

Earlier this month, Apple said it expected shipments of its premium iPhone 14 models to drop due to disruptions caused by a shutdown at the same Foxconn facility. The Zhengzhou plant employs more than 200,000 people to produce Apple devices, including the iPhone 14 Pro and Pro Max, and accounts for 70% of iPhone shipments worldwide.

Source: The Verge, CNN

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