Foxconn employees in Zhengzhou are leaving the facility
On Sunday, Foxconn said that it was working with some of its other manufacturing facilities to get the situation under control. Foxconn does manufacture a limited number of iPhone models in India. Overall, Foxconn is responsible for the production of 70% of the iPhone units shipped globally and analysts estimate that this business makes up 45% of Foxconn’s revenue.
Foxconn’s iPhone production at its Zhengzhou facility could drop up to 30% next month says a Reuters source
One of the changes made by the company to prevent the spread of COVID on the Zhengzhou campus prevents workers from eating meals together in one dining hall. Meals must now be consumed by workers in the dormitories. China’s zero-COVID-19 policies require local areas to take fast action with complete lockdowns available as a response. Some businesses are allowed to stay open providing employees live where they work which is known as the “closed-loop” system.
In Zhengzhou, 264 people have come down with COVID since October 19th although Foxconn will not say whether any of its employees working at the Zhengzhou factory have contracted COVID. As COVID cases rose in Shenzhen earlier this year, Foxconn required employees at the smaller facility to work and eat at the factory in March and July, hoping that this “closed-loop” system would stop the spread of the virus.
Rules put in place due to China’s zero-COVID policy are frustrating workers
Business owners have said that it has been hard to implement the “closed-loop” system and it can lead employees to feel frustrated. This is why Foxconn has seen workers storm off of the Zhengzhou campus assuming that the images posted on social media are legitimate.
While the COVID situation in the U.S. is nowhere near the same level as it was back then, the virus continues to pick up some momentum and new strains have been discovered. And in China, the country’s zero-COVID policies are making things difficult for companies like Foxconn. Considering how important Apple is to the Taiwan-based manufacturer, Foxconn is doing everything that it can to keep production unscathed.