Following this week's bout of worker unrest at Foxconn's China plant, it was "impossible" for the company to resume entire production by the month-end — a deadline it had internally set before Wednesday's wave of protests, a source said.
Production of Apple Inc's iPhones could slump by at least 30 percent at Foxconn's factory in China's city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter told Reuters on Friday.
Recommended ArticlesView All
China COVID protest: Xi Jinping can't blame the protesters — the world will be watching
IST9 Min(s) Read
Here’s why 2022 has been a very different year for two of India’s biggest AC makers
IST5 Min(s) Read
The estimate was an upward revision of an October internal forecast for production impact of up to 30 percent at the world's largest iPhone factory, said the source, who sought anonymity as the information was private. Following this week's bout of worker unrest at the plant, the source added, it was "impossible" for the company to resume full production by the end of the month — a deadline it had set internally before Wednesday's wave of protests.
Foxconn declined to comment.
Meanwhile, on Thursday, Foxconn said a "technical error" occurred while hiring new recruits at a COVID-hit iPhone factory in China and apologised to workers after the company was rocked by fresh labour unrest.
According to a Bloomberg report, the company has also begun offering 10,000 yuan ($1,400) to any workers who choose to leave. The sum will be paid out in two instalments.
The payout, which in general exceeds a month’s wages for Foxconn’s blue-collar staff, is likely to placate some employees who staged the protest.
"The intent was also to usher out recent employees that the local government helped recruit, many of whom fueled tensions among the ranks. The company will replace departing staff, though it may take time," the report added.