Foxconn offers $1,400 to each new hire to leave China iPhone factory

HONG KONG: Apple iPhone maker Foxconn is offering $1,400 to each new worker at its factory in the central Chinese city of Zhengzhou to leave the facility, in a desperate moved to end protects after workers clashed with security forces over late bonus payments for work during Covid lockdowns, the media reported on Thursday.

The new hires at the world's largest iPhone factory will receive the money if they tender their resignation immediately, reports South China Morning Post.

The offer to workers was published by Chinese online media outlet Cailianshe, after violent clashes over allowances and strict Covid-19 measures.

"According to the company notice, recently-hired workers at the iPhone production unit of Foxconn in Zhengzhou will receive 8,000 yuan if they tender their resignation immediately and will receive another 2,000 upon boarding a bus out of the facility," the report mentioned.

"Some employees are still concerned about the coronavirus and hope to quit and return home, and the company deeply understands the concerns," according to the notice.

The package covers lost salary, quarantine allowances and miscellaneous items, according to the notice.

Foxconn has entered into a closed-loop production mode since last month after a Covid-19 outbreak.

This forced Apple to issue a rare warning earlier this month about delayed shipments of iPhone 14 Pro and 14 Pro Max models.

The latest problem can further hamper Apple's supply chain ahead of the holiday shopping season.

Foxconn, officially known as Hon Hai Precision, said in a statement that there had been public protests and "violence" at the factory.

"With respect to violence, the company will continue to communicate with employees and the government to prevent similar incidents from happening again," the company had said in a statement.

Hundreds of workers were seen in social media videos, marching down a road, throwing sticks and bricks at anti-riot police.

One former worker was quoted as saying that the terms of a "retention allowance", promised to new employees who stay at the plant until February 15, 2023, had been changed.

The workers now need to stay until March 15 to receive the bonus, according to the report.