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May 17, 2022

Coronavirus / Russia-Ukraine

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Foxconn, money and bonuses for workers to overcome fears of coronavirus

To try to resume production curbed by the coronavirus, Foxconn, the largest iPhone manufacturer in China, offers services and incentives to workers.

Gianluca Ricciodi Gianluca Riccio
in Medicine, Technology
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foxconn coronavirus
February 26 2020
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The largest iPhone factory in the world offered workers free transportation, meals and lodging. It is an attempt to alleviate the shortage of manpower resulting fromcoronavirus epidemic COVID-19.

Foxconn Technology, which operates iPhone assembly plants in China, also offers bonuses of up to $ 1.000 to get employees back to work by overcoming their fear of contagion.

But that's not all. Public transport workers rely on has been severely hit in China, as the country struggled to contain the spread of the virus. There have been 78.000 confirmed cases of coronavirus in the country so far. They represent over 95% of all infections worldwide.

Foxconn temporarily closed its factories after the Chinese Lunar New Year holiday due to government restrictions. A message to employees earlier this month read: "To safeguard everyone's health and safety and comply with government virus protection measures, we urge you not to return to Shenzhen."

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Foxconn has since restarted production, at least formally. However, there are strong brakes on the real recovery: logistical problems and fear create a strong shortage of personnel, as he also says a report by Reuters.

Foxconn, problems for Apple

Apple has warned that the coronavirus cut in factory production could cause an iPhone shortage later this year. The company points out that "The worldwide supply of iPhones will be temporarily limited". In a note to investors earlier this month, the Cupertino giant said it is unlikely to meet quarterly revenue expectations. The cause is clearly the impact of the coronavirus, which has also led to a drop in demand for iPhones in China.

"Work is starting to resume across the country, but we are seeing a slower return to normal conditions than we anticipated", says the note of Apple.

"Our first priority (now and always) is the health and safety of employees, supply chain partners, customers and the communities in which we operate."

It is unclear whether the production of the iPhone 12 was affected. However, the flagship device is still in the very early stages of the production process and won't be launched until September.

tags: dinnerCoronavirusfoxconn
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