Apple China Supplier Offers $1,800 Bonus To Workers As 20,000 Recruits Leave Over Pay Issues

Apple China Supplier Offers $1,800 Bonus To Workers As 20,000 Recruits Leave Over Pay Issues

In a bid to sustain the staff levels needed to run the main iPhone-making facility, key Apple Inc. AAPL supplier Foxconn is reportedly offering bonuses of as much as $1,800 to its existing workers after massive protests

What Happened: Foxconn, formally known as Hon Hai Precision Industry Co., Ltd HNHPF, will top up wages by as much as 13,000 yuan ($1,805) per month in December and January for full-time employees who joined at the start of November or earlier, the company said in a notice, reported Bloomberg. 

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The company had also offered similar bonuses for workers leaving its campus last week to calm the situation and largely to usher out new arrivals who had participated in protests. 

On Friday, more than 20,000 employees, most of them new hires, reportedly left the Zhengzhou plant after violent protests broke out at the facility over unpaid dues.

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The company later apologized for a “technical error” while hiring new recruits and blamed it all on an "input error in the computer system" after the employees were informed that Foxconn intended to delay bonus payments.

Why It Matters: Foxconn’s Zhengzhou campus — which houses upwards of 200,000 staff — is the assembly hub for Apple’s iPhone Pro models. The Cupertino-based tech giant said it's closely working with the supplier to restore operations, and both companies have expressed a commitment to ensuring worker safety.

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