Foxconn Hiring and Locking Down
As we have previously noted Apple (AAPL) iPhone assembler Foxconn (2354.TT) has faced a bit of difficulty this year when it comes to seasonal hiring as while the crowds of potential workers brought to the company by recruitment agencies were still coming, they were fewer than last year, assumedly due to fear of the potential spread of COVID-19 in such close quarters. Even with bigger sign-on bonuses, some potential workers that might typically sign on during this the busy season for iPhone assembly, Foxconn is having trouble filling the necessary quotas to keep the lines up to speed and has reportedly increased signing bonuses by another 20% to fill the gap. The hiring bonus in at the Longhua factory was $782.23 on July 19 and is currently (yesterday) $960.01 and it seems that it is even higher at the Foxconn factory in Zhengzhou, where it was recently $1481.50, as long as employment conditions are met, while competitor Pegatron (4938.TT) is offering a $2,074.10 monthly salary to fill its ranks.
Unfortunately for those hired it seems that only hours ago the city of Shenzhen has ordered over 100 companies in the city, Foxconn included, into a ‘closed loop’ lockdown, to contain COVID-19 infection breakouts. Other firms, including Chinese companies, BYD (002594.CH), ZTE (000063.CH), and Huawei (pvt) have been included in the company list, The process means that only employees that live on site, meaning in company or company-sponsored campus housing, will be allowed to work, and no new employees may enter and no existing employees may leave. All of this comes after the government of Shanghai held over 20 meetings with a variety of foreign firms that have representation in the city in June to try to mend fences after the 60 day lockdown that blemished the city’s reputation as a hub for foreign businesses. Shenzhen itself is not locked down officially but is trying to seal off those residential and commercial areas where it sees the highest risk, a bit less onerous than the March lockdown, which forced residents to be tested multiple times and allowed only one individual in each household to leave to buy necessities every few days.
Unfortunately for those hired it seems that only hours ago the city of Shenzhen has ordered over 100 companies in the city, Foxconn included, into a ‘closed loop’ lockdown, to contain COVID-19 infection breakouts. Other firms, including Chinese companies, BYD (002594.CH), ZTE (000063.CH), and Huawei (pvt) have been included in the company list, The process means that only employees that live on site, meaning in company or company-sponsored campus housing, will be allowed to work, and no new employees may enter and no existing employees may leave. All of this comes after the government of Shanghai held over 20 meetings with a variety of foreign firms that have representation in the city in June to try to mend fences after the 60 day lockdown that blemished the city’s reputation as a hub for foreign businesses. Shenzhen itself is not locked down officially but is trying to seal off those residential and commercial areas where it sees the highest risk, a bit less onerous than the March lockdown, which forced residents to be tested multiple times and allowed only one individual in each household to leave to buy necessities every few days.
Potential workers lining up outside the Foxconn factory in Longhua, Shanzhen - Source:SCMP
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