According to CNA, the Chinese government has significantly relaxed epidemic control measures. Under this situation, Foxconn’s Zhengzhou plant will increase its incentive policy to encourage workers to stay.
According to Bloomberg, the incentives are as follows:
- An extra 30 yuan ($4.20) an hour on top of their regular wages through December and January for workers who left the Zhengzhou complex between October 1 and November 10
- 500 yuan ($72) for returnees
- 3,000 yuan ($431) bonus after staying 30 days, and another 6,000 yuan ($862) in January if they work 23 days or more.
- Full-time workers who had joined at the start of November or earlier would receive 13,000 yuan (about $1,870) for the salary of December and January.
In addition, CNA reported that a new employee could enjoy an entry bonus of 8,000 yuan ($1,150) if he has been on the job for more than 90 days.
Hon Hai Group’s Zhengzhou factory is an important base for assembling and manufacturing high-end iPhones. According to Bloomberg, Apple is facing a shortage of iPhone 14 Pros during the critical holiday shopping season because of production problems in China.
The companies estimate that the problems in Zhengzhou will reduce output by nearly 6 million Pro devices. It means they may lose $6 billion in revenue as Pro devices are their most demanded models. Therefore, the company releases such incentives to attract workers.
According to Wall Street Journal, the founder of Foxconn has played a significant role in convincing the Chinese regime’s leadership to speed up plans to relax the controversial zero-COVID policy.
Terry Gou, the founder of Foxconn, explained to Chinese leaders in a letter that the regime’s strict COVID-controlled measures could jeopardize the world’s second economy’s position in global supply chains.
The letter also requested greater transparency from authorities regarding restrictions imposed on Foxconn employees.