Foxconn, Fake Edited Video... Investigation Requested by Public Security Authorities
Worker Exodus Leads to 3-4 Times Increase in Daily Production Incentives and Other Allowances
[Asia Economy Senior Reporter Cho Young-shin] A video claiming that a death occurred in Room 726 of the dormitory at Foxconn (Hon Hai Precision Industry), the world's largest Apple iPhone manufacturer, in Zhengzhou, Taiwan, has spread on Chinese social media (SNS), causing an uproar across China. The fear of COVID-19 infection has led to workers leaving the factory, and the chaos inside the factory shows no signs of subsiding.
According to Chinese media such as Pengpai on the 2nd, a video circulated on SNS the previous day claiming that a confirmed COVID-19 patient died in Room 726 of the dormitory at Foxconn's Zhengzhou factory.
As the video spread rapidly, Foxconn Zhengzhou factory denied the death in Room 726, calling the video a fabricated montage, and requested an investigation by public security authorities.
Foxconn stated that there was no death incident within the Zhengzhou factory and that the circulated video was a maliciously edited composite video. They announced they would hold legal responsibility for the malicious rumors. They also emphasized that they are following quarantine policies to prevent the epidemic and ensure safety, and that there are no safety issues for any workers.
Within China, regardless of the video's authenticity, dissatisfaction with Foxconn's preemptive response has poured out. Chinese media reported that videos and photos of workers leaving the factory and walking home for tens of hours were enough to ignite the anger of China's 1.4 billion people, criticizing the iPhone production policy based on quarantine methods.
They also criticized Foxconn's opaque information disclosure, which caused panic among the approximately 300,000 workers, blaming the company's complacent attitude.
After infections appeared in Zhengzhou city, Foxconn began daily COVID-19 testing for all employees on the 10th of last month. From the 13th onward, employees living outside the factory were required to live in the dormitory and were assigned to the iPhone 14 production line. Although called quarantine, it has been criticized as effectively forcing labor under confinement conditions.
On the 19th, the factory cafeteria was closed, and workers were instructed to eat in their dormitory rooms, which sparked workers' complaints. The situation's severity became known externally when some anxious workers escaped the factory and took 24 hours to walk home.
Eventually, on the 30th of last month, Foxconn announced it would provide transportation such as buses for workers wishing to return home, triggering a mass exodus of workers from the factory.
Due to worker departures, disruptions to Apple iPhone 14 production seem inevitable. With forecasts predicting about a 30% drop in production volume, Foxconn raised the daily production incentive from 100 yuan (approximately 20,000 KRW) to 400 yuan.
Additionally, workers who work more than 25 days a month will receive a maximum labor bonus of 5,000 yuan (approximately 970,000 KRW), more than three times the previous 1,500 yuan.
Along with this, Foxconn offered a carrot by promising a 15,000 yuan bonus to workers who forgo holidays and work with full effort throughout November. The average monthly salary of Foxconn factory workers is around 4,000 yuan.
Chinese media reported that Foxconn's incentive measures indicate that the company is experiencing a labor shortage due to the mass departure of workers.
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