Foxconn Boosts Wages and Bonuses as iPhone 15 Launch Nears

Foxconn, the renowned supplier of iPhones for Apple, is increasing wages for its workers ahead of the anticipated launch of a new iPhone model. The company is actively recruiting additional employees for its sprawling iPhone factory in Zhengzhou, China. To attract new talent, Foxconn has announced that newcomers who remain in their positions for at least 90 days will receive bonuses of up to 3,000 yuan ($424; £343). Furthermore, existing employees who successfully refer a friend or family member will also be eligible for rewards.

The forthcoming iPhone model, rumored to be the iPhone 15, is scheduled for release in September. To bolster its workforce in preparation for this significant event, Foxconn is implementing measures to improve employee benefits. An internal post on the popular Chinese messaging app WeChat revealed that current employees will receive 500 yuan if the referred individual remains with the company for a month.

This move by Foxconn is the latest in a series of initiatives aimed at enhancing the welfare of its workers at the enormous Zhengzhou plant, widely known as “iPhone City.” However, a spokesperson for Foxconn declined to comment when approached by the BBC regarding these developments.

In the past, the company faced challenges, including worker protests and issues related to the COVID-19 pandemic. In 2022, hundreds of employees staged protests at the Zhengzhou plant, expressing dissatisfaction with COVID-19 restrictions and overdue wages. Videos circulated online depicting individuals jumping over a fence after the factory was placed under lockdown due to a coronavirus outbreak.

Additionally, Apple encountered setbacks when Chinese officials imposed restrictions on a district in Zhengzhou, where iPhone City is located. Consequently, the shipment of iPhone 14 devices was delayed. To mitigate the effects of the delay, Apple recruited new workers and enticed them with promises of higher bonuses.

However, some workers expressed discontent, alleging that the terms of their contracts were altered, preventing them from receiving the subsidies promised. These individuals claimed that they were quarantined without adequate food. Foxconn responded, attributing the situation to a technical error during the onboarding process. The company asserted that the new recruits’ pay was consistent with the terms stated in the official recruitment posters.

With over 200,000 employees, the Zhengzhou plant serves as a significant hub for the production of Apple devices, including the iPhone 14 Pro and Pro Max. As the release of the new iPhone model approaches, Foxconn’s efforts to attract and retain a skilled workforce reflect the importance of maintaining efficient operations and meeting consumer demand.