Foxconn has issued an apology for a “technical problem” in its payment systems, a day after its iPhone production in China was rocked by violent protesters.
Hundreds of workers were captured on video at the world’s largest iPhone manufacturing in the city of Zhengzhou, protesting Covid restrictions and unpaid wages.
Those who live-streamed the protests claimed cops beat workers.
According to one Foxconn employee, the matter has subsequently been fixed.
Last month, the plant was sealed down due to an increase in Covid cases, leading several employees to escape and return home. The corporation then recruited new employees by offering hefty bonuses.
One worker, however, stated that these contracts were altered so that they “could not receive the promised subsidy” and that they were confined without food.
Foxconn issued a statement on Thursday stating that a “technical error happened during the onboarding process” and that the salary of new employees was “the same as negotiated in the official recruitment posters.”
The company stated that it was in continual communication with affected employees over compensation and bonuses and was doing its utmost “to actively address their concerns and reasonable requests.
A worker told that he had got 8,000 yuan ($1,120; £926) and was scheduled to receive a further 2,000 yuan. He further stated that there were no more protesters and that he and his coworkers will return to the Foxconn workplace.
The Zhengzhou plant employs over two hundred thousand individuals to manufacture Apple products, including the iPhone 14 Pro and Pro Max.
Separately on Thursday, officials imposed a lockdown on the city, stating that no one would be allowed to leave until they received a negative Covid test, affecting almost six million people.
China has recorded the largest number of daily Covid cases since the epidemic began, with several major cities, including Beijing and Guangzhou, seeing an outbreak wave.
As its economic development slows, the International Monetary Fund (IMF) has urged China to adjust its zero-Covid plan.
In the three months leading up to the end of June, the gross domestic product (GDP) of the world’s second-largest economy decreased by 2.6% compared to the previous quarter.
“Although the zero-Covid policy has become more agile over time, the combination of more contagious Covid strains and chronic vaccination gaps has necessitated more frequent lockdowns, weighing on consumption and private investment, especially housing,” the IMF stated.
The global banking organization also urged Beijing to vaccinate more people and provide additional aid to its crisis-stricken real estate market.
Nevertheless, some observers feel that the IMF’s advice will not convince China to alter its policy.
The global chief economist of The Economist Intelligence Unit, Simon Baptist, “Given that China is unlikely to seek assistance from the IMF, it doesn’t matter if they pay attention to this comment or not.”
