Foxconn denied housing new hires with Covid-positive staff at the Zhengzhou facility, the world’s largest maker of iPhones, but acknowledged that workers had complained about wages and working conditions at the plant.
The Taiwanese electronics firm issued a statement saying, “Regarding any violence, the company will continue to speak with employees and the government to avoid similar occurrences from happening again.”
Protests Against iPhone Maker Foxconn
Covid-19 infections have increased at the main Apple subcontractor’s Zhengzhou facility, prompting the company to close the enormous complex to contain the virus. Since then, the enormous iPhone City plant with its 200,000 employees has been running in a closed loop bubble.
This month, a video of terrified employees running away from the scene in large groups on foot was made public following claims that the institution had bad working conditions. Later, other workers described scenes of mayhem and disarray at the complex of workshops and dorms to Agence France-Presse.
Foxconn issued a statement on Thursday claiming that a technical problem happened during the onboarding process and assuring new hires that their salary was the same as agreed in the official recruitment posters.
The business claimed that it was in regular contact with the affected employees regarding pay and bonuses and that it was actively addressing the worries and justifiable demands of its staff.
A worker also revealed to the BBC on Thursday that he had since received 8,000 yuan ($1,120; £926) and was scheduled to receive an extra 2,000 yuan. He went on to add that there were no more protesters and that he and his coworkers will return to their jobs at Foxconn.
It happened at a time when China experienced a wave of outbreaks that affected several important cities, including Beijing and Guangzhou, and the country saw its highest daily number of Covid cases since the pandemic started.
As China’s economic development slows, the International Monetary Fund (IMF) has urged China to reevaluate its zero-Covid strategy.
China’s Strict Covid-19 Lockdown
On a different note, authorities ordered a city-wide lockdown on Thursday, making it impossible for anybody to leave without first passing a Covid test. More than six million city residents were impacted by this decree.
The world’s second-largest economy’s gross domestic product (GDP) shrank 2.6% from the prior quarter in the three months that ended in June.
The combination of more contagious Covid-19 variants and ongoing vaccination gaps has necessitated more frequent lockdowns, which hurts private investment, particularly housing, and consumption, according to the IMF.
Beijing was also urged by the international financial organization to boost vaccination rates and provide additional support for its struggling real estate market.
Some analysts, however, think that China will not change its policies despite the IMF’s advice.
It doesn’t really matter if China pays attention to this statement or not, according to Simon Baptist, global head economist of The Economist Intelligence Unit, who spoke to the BBC. China is unlikely to resort to the IMF for support, Baptist said.