Foxconn’s woes to take bigger toll on giant China iPhone plant as more workers leave – source
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Foxconn Zhengzhou Factory November Shipments Fall Further – Source
Worker unhappiness at factory escalates into protests this week
Over 20,000 workers left, mostly new hires – source
TAIPEI (Reuters) – Foxconn’s (2317.TW) flagship iPhone factory in China is expected to see a further decline in shipments in November after workers unrest this week, sources have learned firsthand. a source told Friday. As thousands of employees left the site.
When worker troubles at the factory began in late October, the company now said more than 30% of the site’s November production could be affected, up from internal estimates of up to 30%.
The site, which is the only factory where Foxconn makes premium iPhone models, including the iPhone 14 Pro, is unlikely to resume full production before the end of this month, the sources added.
Apple’s (AAPL.O) iPhone factory, the world’s largest, has grappled with tough COVID-19 restrictions, fueling worker frustration and halting production ahead of the Christmas and Chinese New Year holidays in January. plant.
There are growing concerns about Apple’s ability to deliver products during the busy holiday period.
Workers, mostly new hires hired in recent weeks, clashed with security guards at a Zhengzhou factory in central China on Wednesday.
Many claimed they were misunderstood about compensation benefits at the factory, while others complained about sharing a dormitory with a colleague who tested positive for COVID.
Foxconn apologized for a salary-related “technical error” in hiring on Thursday, and then offered 10,000 yuan ($1,400) in protest to recruits who agreed to resign and leave. .
Sources say more than 20,000 workers, most of them new hires and not yet working on the production line, have taken their money and left. A video posted on Chinese social media on Friday showed crowds and long lines of laden workers waiting for buses.
[1/2] The Foxconn logo is seen outside the company’s building in Taipei, Taiwan, November 10, 2022. REUTERS/Ann Wang
“It’s time to go home,” one person posted.
Foxconn, formerly known as Hon Hai Precision Industry Co, declined to comment. Apple, which said it had staff at its factories on Thursday, did not immediately respond to a request for comment on Friday.
The factory employed over 200,000 staff before the woes began. Approximately 1.4 million square meters (15 million square feet), the expansive facility includes dormitories, restaurants, basketball courts, and soccer fields.
Another Foxconn source familiar with the matter said some recruits had left campus, but did not elaborate on how many. The person said that those who are retiring have not yet been trained or started working, so their retirement will not cause further harm to current production.
“While the incident has had a significant impact on our public image, it has had little impact on our (current) capabilities, which have not been affected,” the source said. Told.
“Businesses are limited in what they can do when it comes to pandemic prevention…it has been a problem for some time. Pointed out other workers’ unrest caused. Apple supplier Quanta (2382.TW), May.
Foxconn shares closed down 0.5% and the broader market (.TWII) closed flat.
($1 = 7.1616 Chinese Yuan)
Reported by Yimou Li. Additional reporting by Brenda Goh. Edited by Anne Marie Roantree, William Mallard and Gerry Doyle
Our standards: Thomson Reuters Trust Principles.
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