With the ongoing holiday season, Apple’s main iPhone assembler Foxconn is struggling to meet demand due to a lack of qualified workers. Now, the company is offering considerable bonuses to ex-employees as an incentive for them to rejoin its plant.
COVID-19 lockdowns in China continue to negatively impact iPhone assembler Foxconn
It is not unusual for Foxconn to offer bonuses to workers whether it be to meet seasonal iPhone demand or to poach workers from other factories in the area. However, the circumstances are different. As the ongoing COVID lockdowns in China continue to negatively impact Foxconn, the company is trying its best to resume iPhone production.
Just last week, violent riots broke out at the company’s plant with workers protesting pay and living conditions. Now, as reported by the South China Morning Post, Foxconn’s Integrated Digital Product Business Group recently announced a “returning geese” recruitment project aimed at workers who left the company between October 1, 2022, and November 10, 2022.
As the report notes, tens of thousands of workers left Foxconn’s plant during this period due to COVID-related fears and poor living conditions. If said employees agree to start working for Foxconn again, the company is willing to give them bonuses of up to 12,000 yuan (US$1,672). The bonus will be given on the condition that workers will stay for two months minimum.
The iPhone assembler is also offering separate bonuses for workers who are willing to work in its “closed loop” compound for a minimum of 26 days in December. Workers will also receive a Lunar New Year “gift package” if they work for a minimum of 23 days in January.
On top of the hourly rate of 30 yuan (US$4.2), relatively high pay for Chinese workers, Foxconn promised a bonus of 3,000 yuan if they stayed for 30 days and another 3,000 yuan if they remained in the “closed loop” compound for at least 26 days in December.
The hourly rate for January remains 30 yuan, while workers will receive a Lunar New Year “gift package” of 6,000 yuan if they turn up for work for at least 23 days in January.
In the meantime, Foxconn has announced plans to significantly expanded the workforce at its iPhone factory in India to deal with iPhone demand.