Apple supplier Foxconn in China loses 20,000 new hires

The logo of Foxconn is seen outside the company's building in Taipei, on Nov 10. (Photo: Reuters)

Foxconn's Zhengzhou plant in China has lost over 20,000 employees, the majority of whom were new hires not yet working on the production line, a Foxconn source familiar with the matter told Reuters on Friday (Nov 25).

The person stated that the departures would complicate the company's previous goal of resuming total production by the end of November, as worker unrest at the world's largest iPhone factory disrupted production.

Foxconn declined to comment.

The worker departures followed the Taiwanese company's Thursday offer of 10,000 yuan (S$1,915) to employees who wished to leave the chaos-stricken plant.

It had apologized for committing a "technical error" regarding pay when hiring new employees, which workers say contributed to protests that led to clashes with security personnel.

Videos uploaded to Chinese social media on Friday depicted crowds and long lines of workers with luggage waiting for buses. One of the posters read, "It's time to go home."

Wednesday's outbreak of labor unrest at the Zhengzhou plant marked a rare instance of open dissent in China, which workers say was fueled by claims of unpaid wages and anger over severe Covid-19 restrictions.

A second Foxconn source with knowledge of the situation stated that some new hires had left the campus but did not specify how many. The individual stated that the departures did not affect current production, as the new employees were still required to complete training before working online.

The unrest occurs at a time when China is experiencing record numbers of Covid-19 infections and increasing lockdowns, both of which have fueled the frustration of citizens across the nation. However, it has also revealed communication issues and staff mistrust of Foxconn management.

Foxconn launched a hiring campaign earlier this month, offering bonuses and higher salaries, following the implementation of measures to prevent the spread of the Covid-19 virus in October.

The curbs compelled the company to isolate a large number of employees, and the plant's conditions caused others to leave.

Publish : 2022-11-25 11:11:00

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