Update on riots at Foxconn plant in China
Foxconn, aka Hon Hai Precision of Taiwan, is parent of Sharp
- CNN is reporting that Foxconn is now offering $1800 bonus to workers who will stay and live and work at the plant in Zhengzhou, China, that makes Apple iPhones
- Wall Street Journal is reporting that Apple’s long term goal to move up to 45% of the iPhone manufacturing from China to India
- If Apple makes move, this would cause significant revenue loss to Foxconn, which shipped $32 billion worth of products in 2019 from Zhengzhou
- Will now pay wages up to 13,000 yuan per month ($1850/month)
- Many workers have chosen to leave, due to severe lockdown policies implemented as part of China’s Zero Covid policy
- Thousands of departing workers are stuck at a local train station, and unable to get home
- Videos that were posted on Chinese social media, showing workers being tear gassed, and beaten with metal poles, were taken down, but are not shown on CNN
- When Apple was asked for comment, spokesperson stated; “We are reviewing the situation and working closely with Foxconn to ensure their employees’ concerns are addressed”
- Every week of shutdown at plant is estimated to cost Apply up to $1 billion per week
- New York Times reported that the lockdowns in China have left residents in “dire straits, with trouble securing food and other necessities like medication”