iPhone maker now offering US$1,000 bonuses to get people back to work – Foxconn, the largest manufacturer of Apple devices, is increasing its bonus offerings to new hires in Zhengzhou as the coronavirus outbreak continues to decimate production in China

Foxconn Technology Group, the world’s largest contract electronics maker, is dangling big bonuses to lure new workers after its factories in China were shut down during the coronavirus outbreak, according to local reports.

The Taiwanese company – which is the main assembler of iPhones – had to delay the reopening of its factories until after the Lunar New Year holiday as part of efforts to contain the outbreak.

It said last Thursday that it would “cautiously” resume output at its main factories in China, and local media outlets reported last week that it was giving returning workers a bonus of 3,000 yuan (US$427) over the span of three months for starting on time.

Now, it is offering new hires in its main assembly site in Zhengzhou, the capital city of Henan province, up to 7,000 yuan (US$995) in incentives if they meet certain conditions, according to a report by tech news site chinastarmarket.cn, citing local employment agencies.

People work on machines at the Foxconn factory in Guiyang, Guizhou province, on May 28, 2018. (Picture: EPA-EFE)

New employees can receive 3,000 yuan after clocking 60 days of work and another 4,000 yuan after 90 days, according to a video report by financial newspaper National Business Daily on Sunday. The Post reported last year that the monthly income of workers of the factory was between 2,000 and 3,000 yuan, based on interviews with more than two dozen workers.

The fat incentives could be an effort to make up for lost time due to the closures. “We can confirm that the virus-related production schedules will have a negative impact on our annual revenues,” Foxconn said in a written statement in response to inquiries by the Post.

Foxconn, formally known as Hon Hai Precision Industry, declined to confirm reports about its incentive packages, saying that it does not comment on “market speculation regarding any aspect of our business operations” as a matter of company policy.

The company has also not publicly commented on how much it has been able to resume output. Reuters reported earlier this month that it hopes to resume half of its production in China by month-end and that only about 10 per cent of Foxconn’s workforce had returned to factories, but the company has said that the news agency’s reports on its overall resumption schedule for its mainland China plants were “not factual.”

“With the current public health challenges linked to the coronavirus, we continue to place a high priority on the welfare of all our employees and we are applying all recommended health and hygiene practices, in accordance with the local laws and regulations, as part of our effort to ensure their health and safety,” the company said in its statement on Monday, adding that it was taking a “cautious approach” in its post-holiday production schedules in its China facilities.

The electronics manufacturer said that while its facilities in China have been delayed in their return to normal operations, its factories in a number of other markets, including Vietnam, India and Mexico, are running at full capacity.


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