Foxconn offers more bonuses to win back iPhone City employees

Apple Inc.’s manufacturing partner. is seeking another special payout to workers in China to quell unrest and restore production at the world’s largest iPhone factory.

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Apple Inc.’s manufacturing partner. seeks another special payout to workers in China to calm unrest and restore production at the world’s largest iPhone factory, a flashpoint in Beijing’s efforts to sustain its economy while fighting Covid infections.

Foxconn Technology Group is offering workers who leave the Zhengzhou complex between October 1 and November 10 an additional 30 yuan ($4.20) per hour on top of their regular pay through December and January, as well as a 500 yuan return bonus. They can get a bonus of 3,000 yuan after a 30-day stay, plus another 6,000 yuan in January if they work 23 days or more, according to a post on social media service WeChat.

Foxconn and Apple carried out a series of additional payments and incentives after violent protests erupted against factory lockdowns imposed to stem a rise in Covid infections. The companies said over the weekend that they would pay as much as 13,000 yuan a month in December and January to full-time workers who joined in early November or earlier.

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Apple is facing a shortage of iPhone 14 Pros during the critical holiday shopping season due to manufacturing issues in China. The companies estimate that the problems in Zhengzhou will reduce production by nearly 6 million units of the Pro devices, the most in-demand models. The phones start at around $1,000, suggesting that could represent at least $6 billion in lost revenue.

The situation in the complex known as iPhone City remains volatile and the amount of lost production may change depending on circumstances. Much will depend on how quickly Foxconn can get people back on track after the protests.

The massive complex is home to more than 200,000 workers during peak iPhone production season. However, thousands left after Foxconn offered recent employees $1,400 each as severance pay, aiming to bring out disgruntled staff.

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