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Foxconn’s Zhengzhou plant, famously known as iPhone City, is facing challenges in recruiting and retaining enough staff as it gears up for the mass production of the highly anticipated iPhone 15. In response to the shortage, the company has reportedly increased worker bonuses three times in just one month. The success of the largest iPhone production facility in the world will be crucial for Apple to meet the skyrocketing demand for its upcoming iPhone 15 lineup.
Last year, the Foxconn plant experienced a major disruption caused by a COVID-19 outbreak. The workers complained about insufficient food and medication, leading to a considerable number of employees breaking out of the plant and returning to their hometowns.
Despite subsequent bonus offers, the problem persisted, and the failure to pay the bonuses triggered violent protests. As a result, over 20,000 workers left the facility. While most of Zhengzhou was released from lockdown, the Foxconn plant remained in closed-loop production for an additional two weeks due to its designation as a “high-risk” area.
Previous attempts to entice workers with bonuses proved futile, and the same trend appears to be continuing this year. Even after two previous raises, workers remained reluctant to join or stay at the plant. Consequently, Foxconn has now taken a step further by offering even more attractive financial incentives.
According to the South China Morning Post, new employees at the plant will be eligible to receive bonuses of up to 3,000 yuan (US$424) after completing a minimum of 90 days of work. Additionally, they will earn an hourly wage of up to 21 yuan. Existing workers, on the other hand, can obtain a referral bonus of 500 yuan. It’s worth noting that Foxconn, also known as Hon Hai Precision Industry, has already raised worker benefits twice this month.
Despite the relatively small amounts in comparison to US standards, these bonuses translate to roughly an additional month of base salary or over a 30% bonus for employees who work for three months. Moreover, the recruitment bonus offered to existing workers represents approximately one week’s pay for each new employee they bring into the plant.
While Foxconn’s CEO, Liu Young-way, has reassured workers that the company has no plans to abandon its second-largest base in Chengdu, concerns have arisen regarding the company’s significant expansion in India. Although he stopped short of guaranteeing job security in Chengdu, his statements aim to quell anxieties among the workforce.
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As Apple’s primary iPhone production facility, Foxconn’s Zhengzhou plant plays a critical role in meeting the demand for the highly anticipated iPhone 15. However, the ongoing struggle to recruit and retain workers has necessitated multiple bonus increases. The success of these efforts remains uncertain, given the plant’s troubled past and the persistent challenges faced in attracting and retaining a sufficient workforce.
With the release of the iPhone 15 on the horizon, Foxconn’s ability to overcome these recruitment hurdles will be crucial to ensuring a smooth production process and meeting the high consumer demand for Apple’s latest flagship smartphone.