Foxconn faces chaos due to China's zero-Covid policy

BEIJING [CHAINA]: Foxconn, Apple's largest supplier, has faced unending chaos in the last two months at its Zhengzhou plant, which happens to be the largest iPhone factory in the world, located in the Henan province in central China, reported Portal Plus.

Foxconn's Zhengzhou plant which earlier employed over 2,00,000 workers, is facing violent protests by employees since November.

The chaos which seems to be the result of China's zero-Covid policy, started after Foxconn held an employment drive in October due to a majority of Foxconn workers leaving the compound amid fear of the "barbaric methods adopted by the management to deal with the country's coronavirus pandaemic outbreak", reported Portal Plus.

The plant received over 1,00,000 new applications. Protests began after the new workers became acquainted with the work scenario which was different from the one promised during recruitment.

Newly-hired employees were promised a bonus payment of 3,000 yuan after 30 working days, and another 3,000 yuan at the completion of 60 days. However, the promises turned out to be mere tactics of enticement, as workers upon arrival at the factory were intimated that the bonus would only be given out much later, according to Portal Plus.

The new workers took no time to stage a protest against the management. Foxconn, in light of the violent protests, paid its workers two months of salary ($1400) and asked them to leave.

China's faulty zero-Covid policy seems to be the reason behind the chaos at Foxconn. It is the state's inability to handle the virus and subsequent crisis which has ultimately led to this situation.

China has had to face unprecedented economic repercussions, which have created ripple effects all over the world ultimately impacting the global economy, according to Portal Plus. Owing to China's Covid response, 78 per cent of the responding brands in a survey said that China was an unattractive choice for investment.

As a result of the protests at Foxconn, Apple suffered a loss of nearly $1 billion per week in iPhone sales. The company is now considering pulling production out of China.