A source has told Bloomberg that Apple assembler Foxconn Technology Group will continue to keep production at its largest plant in Zhengzhou under a closed-loop system despite recent chaos.
The iPhone City refused to abandon the strategy in early November when workers began to walk off the site. The self-contained bubble allows production to keep going, with employees mainly confined to their dorms and the factory floor only. This became a source of frustration among them when an outbreak hit the plant in October.
That month, complaints were about food and medical shortages. In November, it grew to fury about erratic COVID policies, unjust treatment, and unhygienic living conditions.
Bloomberg said Zhengzhou city had removed lockdowns in its main urban areas as of November 29. But those categorized as high-risk areas remained under strict restrictions, and it is unclear whether the Foxconn campus is among them.
Apple is expecting a shortfall of 6 million iPhone Pros output because of the escalated violence around November 23. Sources have told Bloomberg that the situation may worsen if Foxconn keeps pandemic curbs in place.
The unrest reset Foxconn and the local government’s earlier endeavors to refill the lost workforce. The Taiwanese company is again back to frantic hiring with new fancy offers.
On November 29, it declared a 500 yuan ($70) payment to returning workers, a 3,000 yuan bonus for those who can remain for more than 30 days, and a 6,000 yuan January bonus. The day before, the company said it would pay some employees up to 13,000 yuan in salary in December and January.