Apple supplier Foxconn, facing a shortage of workers, is quadrupling daily bonuses to workers, in an attempt to retain enough workers to continue with iPhone assembly. Reuters reports Foxconn is offering workers at its Zhengzhou plant a bonus of 400 yuan per day ($55), a 4x increase over the company’s normal 100 yuan bonus.
Employees that work more than 25 days can score a maximum bonus of 5,000 yuan for the month, up from 1,500 yuan. Workers that put in a “full effort” can score more than 15,000 yuan. (Sorry, Deadpool, no larger bonuses for those that put in “maximum effort.”) The new bonus tiers mean the average worker can earn between 3,000 and 4,000 yuan on a monthly basis.
Around 200,000 people are employed in the Zhengzhou factory that Foxconn uses for most of its iPhone assembly. Foxconn assembles approximately 70% of the iPhones sold by Apple. The company has recently been struggling to keep employees on-site due to COVID lockdowns.
Employee issues at the Zhengzhou plant could cause iPhone production output to fall as much as 30%. In addition to the bonuses, Foxconn is ramping up production at another Shenzhen factory.
China’s zero-COVID policy requires Chinese cities to quell outbreaks by using restrictions, and workers have been attempting to return home to avoid being trapped at the factory if the lockdown increases.
Workers are also reportedly unhappy with other restrictions at the factory, such as the closure of the plant’s cafeteria, as well as a shortage of supplies.
