Foxconn yesterday issued an apology for a “technical error” involving employee salary
[File Photo]
Foxconn’s largest iPhone manufacturer in Zhengzhou, China, has been in the scene of turbulence all week. Recently, demonstrations that had been simmering among newly recruited employees reached a boiling point, and there were numerous clashes reported with the security staff.
Foxconn yesterday issued an apology for a “technical error” involving employee salary; the new recruits claimed to have been misled about compensation benefits. However, each protester was given a $1,400 incentive to quit the workplace and resign by the Foxconn management.
It now appears that the offer may have been a little too appealing, since Foxconn’s newbies reportedly accepted the bait.
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Nonetheless, this might have an extremely negative impact on iPhone production and shipments. Apple already predicted decreased shipments of the iPhone 14 Pro and Pro Max on November 7, and Best Buy warned on Tuesday, that stores will likely run out of high-end iPhones during the holiday shopping season.
According to some estimates, if the “present difficulty” persists until December, then about 10 million iPhones production would be impacted. Others predict that the number of iPhone 14 Pro’s will be 25% to 30% lower than usual in the upcoming holiday season.
The worker unrest was triggered in part by stringent COVID restrictions forcing the plant to operate in ‘closed loop’ mode and to put new recruits in dormitories shared with COVID-positive people.
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