The confusing vicious circle in the city of iPhone

Tram Ho

Chengzhou is known as the iPhone city with more than 10 million people. Foxconn – the company that produces 70% of the global iPhones is located in this city. According to 2020 statistics, Foxconn has about 810,000 workers with a production capacity of 500,000 standard iPhones per day.

Starting point

However, in early October, China broke out a serious Covid-19 epidemic. Chengzhou city has to comply with the blockade. Zhang Yao, an accredited factory worker, expressed fear when he saw another 3,000 workers quarantined after someone tested positive for Covid. Since then, the remaining workers have had to stay in the factory with unsanitary conditions.

Many workers quit their jobs and fled during the night. This greatly affects the iPhone production process here. Because iPhone 14 Pro and iPhone 14 Pro max have just been released. Foxconn needs to ramp up operations to keep up with the number of new iPhones for next quarter.

Developments: Recruiting people “urgently”

According to the South China Morning Post website, the shortage of two-thirds of workers forced Foxconn to urgently recruit and plan to recruit 100,000 people. Many local officials even called former workers to convince them to return to the factory. Foxconn also applies a strategy of recruiting former soldiers as well as Party members to work.

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Recruitment Accreditation at Foxconn. Photo: REUTERS

This company also offers a bonus of 500 yuan (nearly 2 million) for each person who returns to work. Even “rookies” can receive 3,000 yuan (more than 10 million dong) after a month of work and another 3,000 yuan if they stay after 2 months, according to CNN.

The climax: Violence at the factory

However, on November 22, Foxconn had a protest, many workers demanded to quit immediately. The reason is because their actual salary is different from the level that Foxconn provided before. Specifically, under the new law, Foxconn requires “rookies” to work until the end of March 2023 to be paid 6000 yuan in bonuses. However, the contract they signed will expire in February. That means the workers will never receive this payment.

Returning to the starting point: The “weird” solution

To prevent protests, Foxconn has many ways to calm workers. However, this factory chose the “vicious” solution.

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Protest on November 23 in Chengzhou. Photo: Irish Examiner

According to CNN, Foxconn sent a message to employees that they would pay 8,000 yuan (more than 27 million VND / person) if the workers agreed to quit. Even received an additional 2,000 yuan (nearly 7 million dong) after workers got on the car to leave the factory.

With a severe shortage of production workers and the upcoming shopping season, this move by Foxconn is said to be odd, confusing and makes all previous recruitment efforts meaningless.

Foxconn has officially returned to the starting point in early October.

The riot has damaged the factory’s reputation as well as created a significant impact when China was experiencing an outbreak of the disease. With such a “vicious” solution, will Chengzhou still be an Iphone city? By the near future, Foxconn will face poor production and lose a huge amount of compensation.

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Source : Genk