Foxconn and Apple have launched a series of additional payments and incentives after violent protests erupted over lockdowns imposed on factories to curb a rise in Covid infections. In January, workers at Foxconn’s main plant in Shenzhen will receive a bonus of 3,000 yuan for staying 30 days, 6,000 yuan for working more than 23 days, and 10,000 yuan for working more than 50 days. Workers at Apple’s main plant in Cupertino will also receive a bonus of 3,000 yuan for staying 30 days, 6,000 yuan for working more than 23 days, and 10,000 yuan for working more than 50 days.
The companies said the payouts would be in addition to their current benefits, which include health insurance, 401(k) plans, and other benefits. The move comes as a response to the Chinese government’s recent decision to increase the minimum wage by 10 percent over the next two years. The companies said they would start paying out the money in December and January “in order to ensure that employees have enough time to prepare for New Year’s celebrations.”
Apple is facing a shortage of iPhone 14 Pro models during the holiday season due to production issues in China. We estimate that the shortfall will decrease by about 6 million units, resulting in a loss of $6 billion in revenue.
The situation at the complex known as iPhone City is still ongoing, and the amount of production lost due to the situation could change. It all depends on how quickly Foxconn can get people back on the assembly line after the protests.
Foxconn is planning to build a massive complex that will house more than 200,000 workers during peak iPhone production seasons. But thousands of employees have left after Foxconn offered its youngest employees $1,400 each in severance pay to fire disgruntled employees.
