Foxconn woos fleeing workers with $70 subsidy after iPhone production hit

Hong Kong/San Francisco: Facing difficulty in operating the phone-making plant in China where stricter covid curbs are underway, Apple iPhone supplier Foxconn offers better pay to fleeing workers.

Foxconn has announced to give fleeing workers a $70 (nearly 500 yuan) subsidy after Apple warned of iPhone delays due to Covid-related exodus at the Zhengzhou factory in China, the media reported on Monday.

Foxconn called the 'care and love' subsidy a 'pre-hiring' offer as workers would not be able to return until the seven-day lockdown is lifted this week, reports South China Morning Post.

"Foxconn Zhengzhou is offering workers who fled the compound over coronavirus fears a one-off 500 yuan ($70) subsidy if they agree to return to work," the report said.

The company said that it will organise transport to get the workers back at the factory in a "point to point, closed-loop manner" once the lockdown in the Zhengzhou Airport Economic Zone is lifted.

Foxconn said it would "revise down" its outlook for the fourth quarter "due to the pandemic affecting some of its operations in Zhengzhou."

Foxconn Zhengzhou employs nearly 3,00,000 workers.

The company has closed dining halls in the compound and asked workers to have meals in their dormitories. Canteens reopened last week but with limited seating, the report added.

There is no official estimate of how many workers have left Foxconn.

Apple earlier said that restrictions related to Covid-19 have temporarily affected the main iPhone 14 Pro and iPhone 14 Pro Max assembly facility in Zhengzhou.

The facility is currently operating at a significantly reduced capacity.

"We are working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker," said Apple, adding that the customers will have to wait longer to receive their new iPhone Pro devices.

IANS with inputs