iPhone Supplier Foxconn Told to Hire Retired Government Workers in China: Report

iPhone Supplier Foxconn has been hit by discontent over government-mandated measures to curb the spread of COVID-19.

By Reuters | Updated: 16 November 2022 19:11 IST

iPhone Supplier Foxconn Told to Hire Retired Government Workers in China: Report

Photo Credit: Reuters

Foxconn's Zhengzhou industrial hub in China employs over 200,000 workers

Highlights

China's public sector workers can receive a sign-up bonus of CNY 800
iPhone production could slump by 30 percent at Zhengzhou factory
Foxconn earlier this month quadrupled bonuses for workers who stayed

Local authorities in China's Henan province are urging retired soldiers and government workers to take on stints at Foxconn's iPhone factory in Zhengzhou, the official Shanghai Securities News reported on Tuesday.

The plant, the world's largest iPhone manufacturing facility, has been hit by discontent over government-mandated measures to curb the spread of COVID-19, which required the company to isolate many workers but also prompted many others to flee in recent weeks.

The calls to retired workers have come from authorities in cities such as Jiyuan and Kaifeng, who are saying that those who take up the offer will be eligible to receive their current salary plus wages and bonuses from the factory, the publication said in a piece on its official WeChat account.

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In Jiyuan, for example, public sector workers can receive a bonus of CNY 800 (roughly Rs. 9,000) after signing up for the job, and a further CNY 3,000 yuan (roughly Rs. 35,000) bonus after completing 30 days of work, on top of factory wages and their current salary, it said, citing an unnamed junior government official.

Foxconn declined to comment on the hiring schemes, and also declined to give further updates on the Zhengzhou plant's manufacturing status.

Apple last week lowered its forecast for shipments of the premium iPhone 14 model due to the situation. Reuters last month reported that Foxconn's production of Apple's iPhones at the Zhengzhou factory could slump by as much as 30 percent in November.

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Earlier this month, Foxconn quadrupled bonuses for workers who stayed and also began a recruitment drive that advertised higher-than-usual salaries.

On Tuesday, the Henan Daily reported that the factory received its first batch of new workers on Nov. 13.

Last week, Apple supplier Foxconn said it expected smartphone revenue to fall this quarter and is adjusting production to prevent recent COVID-19 curbs at a massive iPhone factory in China from impacting holiday orders.

Foxconn has been in news for the last few weeks due to tight virus restrictions at its Zhengzhou plant, the world's largest iPhone factory, disrupting production. The plant in China's industrial hub employs about 200,000 people.

© Thomson Reuters 2022

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