Apple contractor Foxconn is setting up new bonuses to retain workers in China

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Almost 700 euros: this is the new bonus offered by Foxconn to workers at the largest iPhone factory in China. The offer applies to employees who agree to work until March, as the easing of sanitary measures worsens the labor shortage in the supply chain.

With our correspondent in Beijing, Stéphane Lagarde

The Foxconn factory in Zhengzhou is far from having recovered its full capacity. Despite help from local authorities, recruitment campaigns and wage increases, Apple’s subcontractor is struggling to hire.

However, it is in this industrial campus, a veritable city within a city located near the airport in the capital of the central province of Henan, that 80% of iPhones “made in China” are manufactured. The workers’ revolt last autumn seriously disrupted production, as well as the shipment of the latest models.

Factories slowed by infections

Pictures riot against deteriorating working conditions with health restrictions, also following non-compliance with certain temporary contracts, have been around the world. Above all, they warned the central government about the increase in social discontent associated with the zero Covid strategy. We have since learned that the founder of Foxconn then wrote a letter to Chinese leaders warning them of the economic risks of expanding the zero-tolerance policy against the virus.

The restrictive measures have since been lifted, but outbreaks of infections paralyzes part of the assembly lines. What led to these new financial incentives for employees who occupy key positions in the manufacture of Apple brand smartphones from January 1 to March 20, in other words, for those who agree not to go on vacation during the Lunar New Year holidays .

According to market research firm Trendforce, cited by the South China Morning Post, the Omicron tsunami could lead to a 22% drop in iPhone shipments in the first quarter of 2023.

Also to listen: Liu Young-way, the discreet president of the giant Foxconn


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