Worker unrest at the only factory that makes the new iPhone 14 Pro will make it harder to get Apple’s latest premier smart phone in time for the holidays.
The stressed-out workers at the world’s largest Apple iPhone factory, Foxconn Technology Group’s plant in Zhengzhou, in central China, have protested and thousands have fled over strict Covid-19 restrictions — including isolation of workers suspected of being infected — disrupting production as the holiday season kicks off.
The result is that more than 30% of the factory’s November production could be affected, Reuters reportedCiting an internal source, That’s an increased estimate from the “up to” When the first issues erupted last month, 30% were cited.
Only one factory in the country produces the premium iPhone models. This 15-million-square-foot facility also makes the iPhone14 Pro. Reuters reported that full production will not resume at the plant by the end this month.
Apple According to The Associated Press It had workers on the ground. “We are reviewing the situation and working closely with Foxconn to ensure their employees’ concerns are addressed,” The Cupertino company, California said.
Apple stated earlier in the month that it had delayed delivery of iPhone 14s. “reduced capacity” At the plant.
Apple shares slipped 2% to $147.92 in Friday’s abbreviated trading session on Wall Street.
Foxconn’s chaos led to Taiwanese firm offering $1,400 in job offers to new hires. CNN reportedSplitting the amount to pay money for quits and additional cash to purchase bus tickets to leave the plant.
Reuters reports that more than 20,000 employees took the money, and then left. Reuters also reported on Friday that social media videos showed large crowds of people waiting in long lines with luggage, and others waiting to board buses. About 200,000 people worked in the factory before the unrest.
CNN reports that protests over pay packages and COVID concerns related to living conditions led to the offering of compensation to the workers for their departure. Many of these workers sleep in dormitories located at the plant. On social media, videos showed demonstrators striking out at security officers in hazmat suits and hitting them with batons or metal rods. Some of the workers saw tearing down barriers, throwing bottles at officers, smashing into police cars and overturning them.
A Foxconn source downplayed the problems to Reuters, claiming that because the new workers had not been trained or begun to work, their exits wouldn’t impact production. “The incident has a big impact on our public image but little on our (current) capacity. Our current capacity is not affected,” According to the source.
The unrest comes as the ruling Communist Party tries to contain a surge in coronavirus cases without shutting down factories and amid wider protests about the restrictions across China amid President Xi Xingping’s “Zero COVID” policy.