Foxconn hopes to retain workers by offering cash bonuses

Apple supplier Foxconn is offering a $718 subsidy for employees to keep working after struggles with workers over COVID-19 restrictions.

Foxconn will offer a subsidy for workers who stay in essential roles at the Zhengzhou iPhone factory from January 1 to March 20. By March 20, when Foxconn pays the subsidy, workers must be valid employees.

It is also extending the "show up" bonus payments for employees. Workers can receive a 6,000 yuan ($862) bonus if they work more than 23 days in January 2023, according to the South China Morning Post on Wednesday.

In November, hundreds of workers at the Zhengzhou factory rioted over poor conditions at Foxconn. Videos online reportedly showed employees complaining about not getting meals while in COVID lockdown.

A report at that time claimed the protests were triggered by a plan by Foxconn to delay bonus payments, though Foxconn said that was "untrue."

The supplier ultimately paid over 20,000 protesting workers to leave. Chinese state authorities announced that Foxconn needed 100,000 more workers, and also asked retired military personnel to take on roles.

Foxconn will continue to be a major supplier for Apple, but the company is seeking to move some production elsewhere. It reportedly plans to move some MacBook Pro production to Vietnam in 2023, after having shifted a portion of iPad manufacturing to the country in 2021.

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