Workers Rebel Against China's Major Apple Supplier, Question Country's Covid Decree

  • Shanghai Apple Inc AAPL supplier, Quanta Computer Inc's QUCPY low-wage workers, rebelled against their supervisors, demanding more freedom, Bloomberg reports.
  • The workers locked down by government ruling and isolated from the outside world for almost two months were a part of violent clashes, mounting infections, and vacant factory floors.
  • During the April lockdown, Quanta had to shut off most of its factories and seal workers. 
  • Production resumed at reduced capacity under a closed-loop model. 
  • Quanta continued to pay workers their basic salary of around 3,000 yuan ($450) that month, a fraction of the average wage in China's most prosperous city, Bloomberg notes. 
  • Quanta is unlikely to be an isolated incident, economists suggested.
  • The fallout is real and growing, forcing China's biggest chipmaker and a major iPhone supplier to slash their outlooks for the second quarter.
  • Recently, a large group stormed a dormitory housing Quanta's Taiwanese managers following a dispute over the prolonged lockdown and pay.
  • The incidents led to experts questioning the sustainability of China's closed-loop model for the longer term.
Loading...
Loading...
AAPL Logo
AAPLApple Inc
$201.292.40%

Stock Score Locked: Edge Members Only

Benzinga Rankings give you vital metrics on any stock – anytime.

Unlock Rankings
Edge Rankings
Momentum
23.56
Growth
32.66
Quality
76.91
Value
9.47
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs

Comments
Loading...