Home Business Foxconn apologises for pay-related error at China iPhone plant after worker unrest

Foxconn apologises for pay-related error at China iPhone plant after worker unrest

by admin
0 comment
  • Foxconn says it is working with staff to resolve the dispute
  • Major iPhone factory rocked by protests over wages and conditions
  • Apple says it has a local team in Zhengzhou

Taipei/Shanghai, November 24 (Reuters) – Foxconn (2317.TW) On Thursday, workers at a coronavirus-hit China iPhone factory said a payroll-related “technical error” occurred while hiring new employees after the company was rocked by new labor unrest. apologized to

As hundreds of workers protested at the world’s largest iPhone factory in Zhengzhou on Wednesday, a man smashed a surveillance camera and clashed with security.

In a video circulated on social media, an employee said Apple Inc. (AAPL.O) Suppliers who intend to delay the payment of bonuses. Some workers complained they were forced to share dormitories with colleagues who tested positive for COVID.

“Our team is investigating this issue and discovered a technical error occurred during the onboarding process,” Foxconn said in a statement, referring to hiring new workers.

“We apologize for the input error in our computer system. We assure you that the actual salary is the same as the agreed official recruitment poster.” He did not elaborate on the error.

The apology was a turnaround from the day before, when Foxconn said it had fulfilled its payment agreement.

The anxiety comes as China records a record number of COVID-19 infections and grapples with more and more lockdowns fueling frustration among citizens across the country. However, communication problems and a mistrust of Foxconn’s management among some employees were exposed.

A Foxconn source familiar with the matter told Reuters on Thursday that the largest protests have been quelled and the company is in contact with employees participating in smaller protests.

The company has reached an “initial agreement” with its employees to resolve the dispute, and production continues at the factory, the person said.

The COVID outbreak, stringent quarantine rules and growing worker frustration over food shortages have forced many employees to shut down since October after management implemented a so-called closed-loop system to isolate the factory from the wider world. escaped from a detained factory campus.

Many of the new recruits were hired to replace fleeing workers – estimated by some former staff in the thousands.

The Taiwanese company said it would honor the wishes of new recruits who wish to retire and leave the factory campus and offer them a “nursing care subsidy.” Foxconn sources said the subsidy will be as high as 10,000 yuan ($1,400) per worker.

apple risk

The Foxconn logo is seen on the glass doors of an office building in Taipei, Taiwan, November 12, 2020. REUTERS/Ann Wang

Employing more than 200,000 people, Foxconn’s Zhengzhou factory covers approximately 1.4 million square meters and includes dormitories, restaurants, basketball courts and soccer fields.

The factory produces Apple devices such as the iPhone 14 Pro and Pro Max, and accounts for 70% of global iPhone shipments.

Reuters Graphics Reuters Graphics

Apple has staffed the factory and said it is “working closely with Foxconn to ensure employee concerns are addressed.”

Several shareholder activists told Reuters the protests showed the risks Apple faces from relying on manufacturing in China.

Christina O’Connell, senior manager at SumOfUs, a nonprofit corporate accountability group, said: .

Reuters reported last month that iPhone output at its Zhengzhou factory could drop by up to 30% in November, with Foxconn aiming to resume full production by the second half of the month.

A Foxconn source familiar with the matter said it was not immediately clear how much the worker protests would affect production in November due to the sheer size of the factory, and that could be resolved. said it could take several days.

Another source said the disruption has ensured that full production cannot resume before the end of the month.

Reuters Graphics Reuters Graphics

Apple has warned that it expects shipments of premium iPhone 14 models to be lower than previously expected.

Reuters Graphics

($1 = 7.1353 Chinese Yuan)

Reporting by Yimou Lee from Taipei and Brenda Goh from Shanghai. Additional reporting by Ross Kerber in Boston, Beijing Newsroom and Yew Lun Tian. Edited by Anne Marie Roantree, Stephen Coates and Edwina Gibbs

Our criteria: Thomson Reuters Trust Principles.

You may also like

Brand initial Simple Logo

The Newstaged is a trusted news website. One of the world’s best multi-news providers, delivering relevant business, financial, sports, Technology, Lifestyle and international news to decision makers, industry leaders, and other professionals who are at the news taged of their companies and use up-to-date news information to make discerning choices.

Edtior's Picks

Latest Articles

Copyright ©️ All rights reserved. | Newstaged