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Foxconn: iPhone maker offers payments for finding new workers

Apple supplier Foxconn is stepping up efforts to hire workers after unrest at the world’s largest iPhone factory.

Employees who successfully refer a friend or family member to work at its plant in Zhengzhou, China will receive a bonus of 1,000 yuan (US$141; £117).

It comes after footage circulated widely across the internet last week showing angry protests at the factory.

Apple has warned shipping of its new iPhone 14 would be delayed due to Covid restrictions.

Foxconn employees who refer a new employee will receive 500 yuan if the person works for the company for 15 days. They will receive an additional 500 yuan if the recruit stays in the role for a month, according to a BBC post on popular messaging app WeChat.

Last month, Foxconn apologized for a “technical error” in its payments system following protests at the factory in the city of Zhengzhou against Covid restrictions and claims of overdue payments.

The announcement came after videos posted on social media showed hundreds of workers clashing with security guards.

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In late October, video shared online showed people jumping over a fence in front of Foxconn after a Covid outbreak forced employees to lock down the facility.

The company then recruited new employees with promises of generous bonuses.

However, one worker told the BBC those contracts were changed so they “could not receive the promised subsidy”, adding that they were quarantined without food.

Some analysts have warned that the protests and Covid lockdowns leading up to the holiday shopping season have had a major impact on production in the so-called “iPhone City”.

“What started a month ago with a 3% shortage of iPhone 14 Pro grew to 5% last week and is now over 10% of total units with the potential to increase in the coming month depending on production improvements from Foxconn,” said Dan Ives of of investment firm Wedbush Securities said.

Although Apple hasn’t quantified the impact of the issues at the Zhengzhou plant, it has warned of delays in shipping the iPhone 14 Pro and iPhone 14 Pro Max.

China’s National Health Commission reported 36,061 new Covid-19 infections on Wednesday, down from 37,828 new cases on Tuesday.

The country’s zero-Covid policy and a slowdown in the global economy are taking their toll on China’s economic growth.

Factory activity in the world’s second largest economy contracted more than expected in November. The purchasing managers’ index (PMI) fell to 48 from 49.2 in October, according to the latest official figures released on Wednesday.

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