Foxconn Pays Up
Back in January of this year, a time when most CE companies had an optimistic view of the prospects for the 2022 year, Taiwan based Foxconn (2354.TT), the largest assembler of the Apple (AAPL) iPhone, began offering large sign-on bonuses to entice workers to its assembly plant in Zhengzhou, China. The bonuses, then worth ~$1,470, were 36% above the standard average monthly salary being earned by workers at the time, and were necessary to attract workers back to the factory during increased COVID-19 outbreaks, despite the fact that Foxconn’s plants in Zhengzhou were in what were considered extremely ‘safe’ zones in relation to COVID-19 risk.
This was the 2nd time Foxconn had offered such incentives, as it had faced the same issue back in June of last year in order to keep up with iPhone 13 production, then offering a $1,235 sign-on bonus to former employees, also far above the then typical sign-on bonus of $773 offered to new workers, who are only paid the bonus if they work at least 4 months and remain working through the peak season, earning between $772 and $926 for a new hire. It seems that Foxconn is playing the bonus card again, as production for the iPhone14 to be released by Apple later this year begins. This follows a suspension of recruitment in May when the government of Zhengzhou locked down the city for seven days, right after Foxconn went on another hiring spree. As the Zhengzhou complex assembles between 75% and 80% of iPhone units, it is essential that Foxconn brings staff up to needed levels in or to keep release and delivery dates on schedule.
This was the 2nd time Foxconn had offered such incentives, as it had faced the same issue back in June of last year in order to keep up with iPhone 13 production, then offering a $1,235 sign-on bonus to former employees, also far above the then typical sign-on bonus of $773 offered to new workers, who are only paid the bonus if they work at least 4 months and remain working through the peak season, earning between $772 and $926 for a new hire. It seems that Foxconn is playing the bonus card again, as production for the iPhone14 to be released by Apple later this year begins. This follows a suspension of recruitment in May when the government of Zhengzhou locked down the city for seven days, right after Foxconn went on another hiring spree. As the Zhengzhou complex assembles between 75% and 80% of iPhone units, it is essential that Foxconn brings staff up to needed levels in or to keep release and delivery dates on schedule.
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