Foxconn incentivizes employees to return to assembly plants in China

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In an effort to combat low employee turnout, Foxconn has begun providing incentives for workers to return to assembly plants in Shenzhen and Chengzhou, China.

Foxconn continues to suffer shortages during the coronavirus outbreak, which had forced the iPhone manufacturer to either remain closed or at low capacity through mid-February.

Strict travel bans making it tough to move around and a fear of catching the coronavirus on public transit have been instrumental in many employees not returning to work.

Foxconn has offered employees a free shuttle service, meals, and accommodations, to help get them into the workplace and to not worry about transport problems caused by the virus. The company has also promised to step up their disinfection operations at their factories, a source told DigiTimes.

Foxconn has also provided monetary incentives for both newly recruited and returning employees who are willing to ease labor shortages. Workers will receive a bonus of 5000-7000 yuan ($710-$995) if they agree to return to work during the shortage, up from an earlier bonus of 3,000 yuan.

According to DigiTimes, many other companies with manufacturing operations in China are offering similar incentives to employees, all in a bid to raise the capacity utilization of their facilities.

The struggle for affected firms is considerable, especially for clients of companies involved, like Apple. As a major assembly partner for the iPhone and other products, Foxconn has a need to keep its production levels high, and it has been trying to do so as safely as it can.

For Apple, the virus oubreak has caused more than issues with manufacturing, as it is slowly re-opening stores it closed in China in an earlier precautionary move. Over half the stores in the country are now open once again, though with measures in place to help prevent the further spread of the coronavirus.

 

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