Investing

Crucial Apple iPhone Supplier Relaxes Covid Restrictions In China Factory – Apple (NASDAQ:AAPL), Hon Hai Precision (OTC:HNHPF)

ByAnusuya Lahiri

Dec 15, 2022
Crucial Apple iPhone Supplier Relaxes Covid Restrictions In China Factory - Apple (NASDAQ:AAPL), Hon Hai Precision (OTC:HNHPF)

  • Key Apple Inc AAPL iPhone assembler Hon Hai Precision Industry Co Ltd HNHPF, operating as Foxconn Technology Group, relaxed most anti-Covid restrictions at its factory in Zhengzhou, China.

  • Foxconn ended its “point-to-point” system, relaxing employees’ daily movements between their dormitories and the campus, Bloomberg reported. Foxconn also reopened its on-site cafeteria. 

  • Foxconn first shut its cafeterias and limited workers’ movements in October to limit the pandemic resurgence. 

  • Also Read: Key Apple Supplier Foxconn Ropes Taiwan Semiconductor Chip Veteran For Newly Created Role

  • The shutdown triggered a food crisis and trash-filled facilities, prompting workers’ exodus. 

  • After Foxconn teamed up with local authorities to hire new staff, the workers revolted in November over compensation and safety practices. 

  • Violent protests broke out as hundreds of workers clashed with security personnel.

  • Apple and Hon Hai warned against iPhone production loss due to the Zhengzhou crisis, responsible for Apple’s high-end Pro models. 

  • However, Foxconn stopped providing them with three free meals per day. Foxconn will deduct the meal expenses from staff wages.

  • It agreed to provide subsidies to those who regularly work from December 16 to December 31.

  • Foxconn will provide free meals to Covid patients who choose to stay at company-appointed accommodations.

  • Foxconn was instrumental in persuading China to ease its Covid-19 policies.

  • Foxconn founder Terry Gou’s letter to Chinese leaders warned against its strict Covid controls costing China’s leadership in global supply chains.

  • Gou also sought more transparency into restrictions on the company’s workers.

  • Price Action: AAPL shares are trading lower by 0.85% at $141.99 premarket on the last check Thursday.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



Image and article originally from www.benzinga.com. Read the original article here.

By Anusuya Lahiri

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