Apple Supplier Foxconn Increases COVID-19 Employee Compensation

Foxconn, an Apple (NASDAQ:AAPL) supplier, reportedly increased compensation and awarded bonuses to employees at its Zhengzhou factory in central China in an effort to quell employee outrage about COVID limitations.

The Henan Daily quoted an unnamed head of the company's integrated digital product business group unit as saying on Monday that daily wages for employees of a Foxconn unit responsible for manufacturing electronics, such as smartphones, at the site have been increased to 100 yuan ($13.70) between October 26 and November 11.

According to the source, the company, formerly known as Hon Hai Precision Industry Co Ltd, is also paying a daily bonus of 50 yuan to all employees at the site who have maintained regular attendance since October 19 and adhered to virus prevention procedures.

Foxconn did not respond to a request for comment on the Henan Daily article immediately. The Henan Daily is the provincial newspaper of Henan, whose capital is Zhengzhou.

Foxconn is the largest iPhone producer for Apple, accounting for 70 percent of global iPhone shipments. It employs over 200,000 people at its Zhengzhou facility, where it manufactures the majority of its phones, and has additional production sites in India and southern China.

Several employees departed the Zhengzhou site over the weekend because they were dissatisfied with the safeguards taken to prevent the spread of COVID-19.

Reuters reported on Monday, citing a source, that November iPhone production at the facility may reduce by as much as 30 percent and that Foxconn is attempting to make up for the shortfall at another factory in Shenzhen city.