- November shipments from Foxconn Zhengzhou plant to fall further – source
- Workers’ unhappiness at the plant turned into protests this week
- More than 20,000 workers, most of them newly hired, have left the source
TAIPEI, Nov 25 (Reuters) – Foxconn’s ( 2317.TW ) flagship iPhone plant in China will see its November shipments further cut by the latest episode of worker unrest this week, it said Friday a source with direct knowledge of the matter. while thousands of employees left the site.
The company could now see more than 30 percent of the site’s November output affected, up from an internal estimate of up to 30 percent when the factory workers’ problems began in late October, the source said.
The site, which is the only factory where Foxconn makes premium iPhone models, including the iPhone 14 Pro, is unlikely to resume full production later this month, the source added.
Apple’s ( AAPL.O ) world’s largest iPhone factory has been grappling with tight COVID-19 restrictions that have fueled discontent among workers and halted production ahead of Christmas and the New Year holidays January Lunar New Year, as many workers isolated themselves or fled the plant.
It has fueled concerns about Apple’s ability to deliver products for the busy holiday period.
On Wednesday, the workers, most of whom were newly hired in recent weeks, clashed with security personnel at the plant in central China’s Zhengzhou.
Many claimed they were misled about compensation benefits at the factory, and others complained of sharing dormitories with colleagues who had tested positive for COVID.
Foxconn apologized for a “technical error” related to pay when it hired on Thursday and later offered 10,000 yuan ($1,400) in protest for new recruits who agreed to resign and walk away.
The source said more than 20,000 workers, mostly new hires who had not yet worked on the production lines, took the money and left. Videos posted on Chinese social media on Friday showed crowds and long lines of workers laden with luggage queuing for buses.
[1/2] Foxconn’s logo is seen outside the company’s building in Taipei, Taiwan November 10, 2022. REUTERS/Ann Wang
“Time to go home,” one person posted.
Foxconn, formally known as Hon Hai Precision Industry Co, declined to comment. Apple, which said Thursday it had staff at the factory, did not immediately respond to a request for comment Friday.
The plant, before its problems began, employed more than 200,000 workers. It has dormitories, restaurants, basketball courts and a soccer field across its approximately 1.4 million square meters (15 million square feet) facility.
Another Foxconn source familiar with the matter said some new hires had left the campus, but did not say how many. This person said that because the people leaving had not yet trained or started work, their departures would not further harm current production.
“The incident has a big impact on our public image but little on our (current) capability. Our current capability is not affected,” the source said.
“There’s only so much the company can do in pandemic prevention … It’s been a problem for a while. This is a problem that everybody faces,” the person said, pointing to the unrest in other workers caused by stiff COVID restrictions, including disruption at another Apple supplier, Quanta ( 2382.TW ), in May.
Foxconn shares closed down 0.5%, lagging the broader market ( .TWII ), which ended flat.
Hundreds of workers joined protests this week at Foxconn’s main iPhone plant in Zhengzhou, China, with some men smashing surveillance cameras and windows, footage posted on social media showed.
($1 = 7.1616 Chinese Yuan Renminbi)
Reporting by Yimou Lee; Additional reporting by Brenda Goh; Editing by Anne Marie Roantree, William Mallard and Gerry Doyle
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