The Foxconn facility in the central Chinese city of Zhengzhou, home to the world's biggest iPhone production, is reportedly giving a 5,000 yuan ($718) incentive to workers who commit to staying on the job until the end of March 2023.
Although the world saw shocking images last month when Foxconn employees struggled with guards over strict Covid-19 regulations, the Zhengzhou site is still trying to return to full capacity.
Since then, an outbreak swept the nation when Beijing unexpectedly lifted its zero-Covid policy.
This picture taken on February 22, 2013 shows people walking past a Foxconn recruitment point in Shenzhen, south China's Guangdong province. Taiwan technology giant Foxconn has slowed new hiring at its vast China factories, it said on February 21, but denied the move was linked to weak demand for Apple's iPhone 5, which it produces.
Subsidy Program
According to South China Morning Post (SCMP), Foxconn will subsidize 5,000 yuan ($718) employees at the Zhengzhou iPhone production who continue their critical jobs from Jan. 1 through Mar. 20 next year.
There is also a 4,700 yuan ($673) subsidy to staff in non-key roles and a 4,500 yuan ($645) subsidy to those in other departments.
These are stated in a WeChat post published by Foxconn's integrated Digital Product Business Group, the division responsible for iPhone production.
Foxconn has said it would release a list of eligible workers on Mar. 10. According to a WeChat post, the incentives will be distributed on Mar. 20 to those who meet the eligibility requirements for being actively employed on that day.
The company is also increasing the "show up" reward for staff.
Reports indicate that employees who put in more than 23 days of labor in January 2023 would be eligible for a 6,000 yuan ($862) bonus.
Chaos in Zhengzhou
As a result of Foxconn's bad working conditions, hundreds of employees in Zhengzhou rioted in November. It has been stated that during the Covid lockdown, staff were not provided with food and made videos protesting about it, AppleInsider reports.
Foxconn has been working feverishly to restore full production capacity after significant interruptions, particularly the violent rallies and the departure of tens of thousands of workers.
The company's desperation to calm the protests led it to offer new hires 10,000 Yuan (about $1,300) to quit their jobs and leave the site immediately. Thereafter, Foxconn started giving fresh incentives to lure back employees who had left earlier but were not involved in the demonstrations.
A surge of illnesses and a shortage of medical supplies have hit China hard since the nation abruptly reversed its three-year zero-Covid policy last month.
Impacts on Apple
Investors are worried about supply chain interruptions, prompting Apple's stock price to fall to its lowest level since the summer of 2020.
Beginning in early November, Apple said that iPhone shipments had been impacted significantly due to the departure of employees at Foxconn's Zhengzhou manufacturing.
In a previous report, estimates for iPhone manufacturing losses range from 6 million to 20 million units.
Since there is now such a significant disparity between supply and demand, the iPhone 14 Pro has suffered the most.
