Foxconn Zhengzhou Factory Recruits Again Amid Worker Exodus

Expectations for iPhone Production Normalization by Late November, but Worker Return Uncertain
Concerns Over Profitability Due to Increased Hourly Wages and Various Allowances

[Asia Economy Senior Reporter Cho Young-shin] Foxconn (Hon Hai Precision Industry), a Taiwanese company, has posted a job announcement for its Zhengzhou factory in Henan Province, China, which is experiencing production disruptions due to worker departures.

[Image source=Yonhap News]

The Zhengzhou factory produces 80% of Apple's iPhone 14 series and more than 85% of the iPhone 14 Pro. Production has been disrupted as many workers left the factory amid concerns over the spread of COVID-19 within the facility.

According to Chinese media including Hongxing News on the 8th, Foxconn's Zhengzhou factory announced the day before that it is recruiting workers to work until February 15 of next year.

Newly hired workers will start working once the lockdown in Zhengzhou city ends, and the factory will operate under a closed-loop system, the company stated.

The hourly wage offered to workers is 30 yuan (approximately 5,800 KRW), with various allowances paid separately, according to Foxconn Zhengzhou. In comparison, workers at other Foxconn iPhone production factories such as Shenzhen earn 21 yuan per hour (peak season rate).

The company plans to pay a consolation bonus of 500 yuan to workers who return (based on those who left between October 10 and November 5).

Chinese media estimate that the average monthly income of Zhengzhou factory workers is about 5,000 yuan, but depending on circumstances, it could rise to as much as 18,600 yuan.

The company also explained that epidemic prevention measures within the factory are showing visible results and that the factory is expected to restore full production capacity by the end of November.

Henan provincial authorities have also pledged full support for Foxconn's Zhengzhou factory and cooperation to restore iPhone production capacity, Chinese media reported.

Apple previously stated that it prioritizes the health and safety of factory workers and acknowledged that shipments of the iPhone 14 Pro and iPhone 14 Pro Max would be lower than expected.

Although the Zhengzhou factory is recruiting workers again, it remains uncertain how many will return. Additionally, the significant increase in hourly wages and allowances is expected to negatively impact Foxconn's profitability.

This content was produced with the assistance of AI translation services.