Foxconn, the iPhone maker, is now providing incentives for discovering new workers

In response to recent unrest at the world’s largest iPhone factory, Apple supplier Foxconn is intensifying its recruitment efforts.

Foxconn is offering a 1,000 yuan ($141; £117) reward to employees who refer a friend or family member successfully employed at its Zhengzhou plant in China.

This initiative follows the widely circulated online footage of protests that took place at the factory last week.

Due to Covid restrictions, Apple has cautioned that shipments of its new iPhone 14 may experience delays.

According to a post on the popular messaging app WeChat, Foxconn employees who refer a new recruit will receive a payment of 500 yuan if the person stays employed by the company for 15 days. Additionally, they will receive an additional 500 yuan if the recruit remains in the role for a month.

In response to protests at its factory in Zhengzhou, including grievances over Covid restrictions and allegations of overdue pay, Foxconn issued an apology last month for a “technical error” in its payment system.

The announcement followed the circulation of videos on social media depicting clashes between hundreds of workers and security staff.

In late October, a video circulated on the internet depicting individuals scaling a fence surrounding Foxconn following a Covid outbreak that compelled employees to undergo a facility lockdown.

Subsequently, the company embarked on a recruitment drive, enticing potential new workers with the assurance of substantial bonuses.

According to Dan Ives, a representative from investment firm Wedbush Securities, the initial iPhone 14 Pro shortage, which began approximately a month ago at 3%, escalated to 5% last week and currently stands at around 10% or more of the total units.

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There is a possibility of further increase in the coming month, contingent upon any production enhancements implemented by Foxconn.

While Apple has refrained from providing a specific estimate regarding the consequences of the predicament at the Zhengzhou plant, it has cautioned customers about potential delays in the delivery of the iPhone 14 Pro and iPhone 14 Pro Max.

On Wednesday, China’s National Health Commission recorded a total of 36,061 newly reported Covid-19 infections, reflecting a decline from the 37,828 cases reported on Tuesday.

China’s pursuit of a zero-Covid policy, coupled with a deceleration in the global economy, is adversely impacting the country’s economic growth.

In November, factory activity in the world’s second-largest economy contracted beyond anticipated levels. The Purchasing Managers’ Index (PMI) dropped to 48, as per the latest official figures released on Wednesday, compared to 49.2 in October.

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