Foxconn raises hourly rate in Shenzhen to US$3.30 after Zhengzhou Covid-19 lockdown dents iPhone production
- Apple’s largest contract manufacturer raised pay in Shenzhen by 14 per cent as it contends with a worker exodus at its largest iPhone plant in Zhengzhou
- Foxconn also raised pay in Zhengzhou, where workers say conditions are still chaotic but access to medicine has improved
Shenzhen’s iPhone production unit raised its hourly wage to 24 yuan (US$3.32) this week, a 14 per cent increase over the previous 21 yuan, according to two local hiring agents on Tuesday. The increase is the result of “the shortage of labour”, one agent said.
A Foxconn spokesman said on Tuesday that the pandemic situation in Zhengzhou is under control and the company is “coordinating the production capability from other sites as backup to minimise the possible impact”. The person did not elaborate on the Shenzhen plant’s hiring plans.
Apple was also forced to break its silence as the situation in Zhengzhou weighed on production of its gadgets just ahead of the peak holiday shopping season.
The chaos in Zhengzhou showcased the unpredictability and additional business costs imposed on companies operating in China by the country’s zero-Covid-19 policy. Foxconn’s Zhengzhou factory has been running under a closed-loop production mode for three weeks amid a local Covid-19 outbreak as the company and local authorities have scrambled to try to keep operations on track.
However, the situation has remained disorganised within the compound, two workers at the site said, in part because there are not enough quarantine spaces for those who test positive and close contacts. Dormitory management is also chaotic, they said, as some workers who were under quarantine were told to free up beds for newcomers because they had not showed up to work for at least three days.