Apple supplier Foxconn recently came under scanner for facing its workers’ resentment in Zhengzhou (China). Repairing its image, it has come up with monetary incentives. According to the offer, employees have to refer new workers. If the new worker manages to work for 15 days, they will receive 500 yuans. For one month’s work, they will get additional 500 yuans. 

China and Foxconn have become synonyms for Apple’s supply chain. The country has pocketed a significant amount of chinks by supplying its workers and resources to the company’s largest factory in Zhengzhou. Not just that, many countries have also tried to adopt a similar model of growth and attract foreign investment. However, this narrative of growth is not bereft of its blemishes. The recent furor of workers at the factory against the iPhone makers speaks for that part. 

The social media world got stunned after a video surfaced online. It presented workers up in arms against the iPhone production facility in Zhengzhou (China). In the video, one can see the workers jumping a fence outside the Foxconn facility after it declared a lockdown because of the Covid outbreak.

The resentment with surging lockdown measures burst up at the facility. The video knocked a blow to the reputation of the factory. To do the damage repair, it has gone ahead to recruit new workers. Not just that, it is also aiming to kill two birds with a stone. On the other hand, it is recruiting new workers. On the other hand, it is offering monetary incentives to its existing employees for that.

According to the offer, the employees need to refer new workers. If their referred workers manage to work for 15 days, the concerned employee will get 500 yuans. Adding to that, if those workers stay on it for a month, the employees will receive additional 500 yuans. Therefore, the offer is about 1000 yuans in total.

Not just that, one can see this as a major cover-up of the payment overdue. Recently, Foxconn offered a public apology for failing to pay workers on time. Taking on that note, it cited a technical error leading to payment failure. That was also one of the reasons that nudged workers to vent their frustration and resentment at the facility.

A plethora of workers locked horns with the security staff. Adding to that, that also went ahead to raise brows across the globe. Making up for the loss, the company started recruiting workers by offering juicy terms. However, according to one worker, those terms were an eyewash. They changed them and did not provide new workers with the promised subsidy. Apart from that, they also alleged that they got them under the mandate of quarantine without food.

Many analysts have also pressed the red alert. According to them, the Covid restrictions and workers’ protests have resulted in a drag on its production capacity. Taking on that part, Dan Ives (from investment firm Wedbush Securities) shared, “What started out a month ago as 3% iPhone 14 Pro shortages grew to 5% last week and now are roughly 10%+ of overall units with the potential to increase over the coming month depending on any production improvements from Foxconn.”

Foxconn has not lucidly admitted the loss. However, it has signaled delays in its deliveries of the iPhone 14 Pro and iPhone 14 Pro Max. Worsening the scenario, Purchasing Managers' Index (PMI) plunged to 48 from 49.5 in October.

Hopefully, the ongoing Covid lockdown relaxation will bring some relief to the production sector.