Foxconn hikes pay for workers in world’s largest iPhone factory ahead of new model launch

Apple supplier Foxconn is ramping up efforts atrecruitment and retaining employeesat the world’s largest iPhone factory in Zhengzhou, China ahead of the launch of a new model. The model in question is iPhone 15 which is expected to be launched in September by the United States-based tech giant.

It also indicates Foxconn’s commitment to continue assembling iPhones in the capital of central Henan province amid Apple’s reported efforts to shift the ongoing manufacturing supply chain away from China.

From a rise in pay to bonuses: What is being offered to employees?

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The Taiwan-based Foxconn said that new workers at the plant in Zhengzhou will receive bonuses of up to $424 (3,000 yuan) if they managed to stay on the job for at least 90 days, with hourly pay of up to 21 yuan ($3), reported South China Morning Post (SCMP). The announcement was made on the messaging app WeChat over the weekend by Foxconn’s integrated Digital Product Business Group, which is responsible for iPhone production.

Meanwhile, existing factory workers can obtain a referral bonus of 500 yuan ($71), provided the person stays at the company for a month, reported BBC. However, this is not Foxconn’s first attempt to retain its workers.

As per the report by SCMP, the company has raised worker benefits twice this month.This includes offering one of the highest loyalty bonuses to new recruits who remain employed for at least three months, which was raised to 2,500 yuan on May 22 from 2,000 yuan on May 3, said the media report.

About the world’s largest iPhone factory

Foxconn’s Zhengzhou plant, also known as iPhone City, is the world’s largest iPhone factory.As per reports, itemploys more than 200,000 workers and assembles nearly 80 per cent of the global supply of Apple'sflagship device.

However, the facility witnessed major disruptions due to China’s strict zero-Covid policy, last year, which has since prompted the company to diversify its productionof the US tech giant’s flagship device to India and Vietnam.

Additionally, hundreds of workers protested at the Zhengzhou plant over COVID-19-related restrictions, and reported overdue pay, while workers also complained about the lack of food and medication. The disruptions in November and December also led to the US-based tech giant’s first quarterly decline in revenue since 2019, said Apple chief executive Tim Cook, as per reports.

However, Foxconn’s CEO said that the Taiwan-based company has no plans to leave its second-largest base in China’s Chengdu and its “important” production base there, after the announcement of its significant expansion in India.

Seemingly in a bid to reaffirm its commitment to China Foxconn also opened a new global business base in Zhengzhou, earlier this year, reported SCMP. This comes amid reports of the company opening an iPhone production facility in the Indian city of Chennai.

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