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How Apple’s iPhone conference fell into riots


Foxconn Apple - UGC/AP

Foxconn Apple – UGC/AP

Hundreds of workers rioted at Foxconn’s flagship iPhone factory in China, smashing equipment and clashing with police wearing protective gear excessive wages and living conditions.

Unrest broke out at the Zhengzhou factory after workers marched out of their dormitories in a rare display of public dissent.

In video shared on Chinese social mediastaff could be heard chanting “suppress Foxconn”, “we want to go home” and “pay us!”.

In one clip, a man appears with his face covered in blood, while a non-videographer says: “They’re hitting people, hitting people. Do they have a conscience?”

The cause of the protests appeared to be a scheme to deny promised bonuses to new workers along with poor living conditions at the factory, many protesters said on development feeds. direct.

The Zhengzhou factory, which employs about 200,000 people, recently saw a spike in the number of Covid-19 infections, prompting the factory to close its complex and operate in a “loophole” bubble. closed” to prevent the virus from spreading.

In closed operations, employees live and work onsite isolated from the wider world.

Hundreds of employees tried to flee by walking to get out of lockdown, many fences widening and walking miles to get home. To keep the factory running, Foxconn recruited new employees with the promise that they would be paid large bonuses.

Video shows people carrying suitcases and bags leaving the Foxconn compound in Zhengzhou in October - Hangpai Xingyang via AP

Video shows people carrying suitcases and bags leaving the Foxconn compound in Zhengzhou in October – Hangpai Xingyang via AP

In videos circulating on Chinese social media, workers express that they are never sure if they will be able to eat while under quarantine. “Foxconn never considered people to be people,” said one.

Some workers complain that they are forced to share dormitories with colleagues who have tested positive for coronavirus. Others said their bonuses had been cut from 3,000 yuan to 30 yuan, according to AFP.

Aiden Chau of China Labor Bulletin, a Hong Kong-based advocacy group, said: “It is clear that the closed manufacturing process at Foxconn only helps prevent Covid from spreading into the city, but it does not help the city. factory workers”.

Foxconn said it had completed the payment contracts and asserted that the information that employees were asked to share a dormitory with people with Covid-19 was “false”.

It added: “Regarding acts of violence, the company will continue to liaise with employees and the government to prevent similar incidents from happening again.”

Li Qiang, founder of China Labor Watch, claimed the unrest was “a result of Apple’s production demand without regard for workers’ needs”.

Foxconn, which is headquartered in Taiwan but has factories in mainland China and India, is Apple’s largest iPhone maker, accounting for 70% of iPhone shipments globally.

Chinese workers at the Foxconn factory in Shenzhen, 2010 - STR/AFP via Getty Images

Chinese workers at the Foxconn factory in Shenzhen, 2010 – STR/AFP via Getty Images

iPhone is still the driver behind the majority Tech giant’s huge profits. It sold more than $200 billion in iPhones last year, more than half of its total revenue. The company is valued at $2.4 trillion (£2 trillion) and reported after-tax profits of only approximately $100 billion for the year to September, according to its most recent financial results.

Apple has so far declined to comment on the factory protests and did not respond to questions from The Telegraph on Wednesday.

The curbs and discontent were produced. Reuters last month reported that iPhone production at Zhengzhou factory may drop by up to 30% in November due to Covid restrictions.

Apple said in early November: “The facility is currently operating at a significantly reduced capacity. Customers will experience longer wait times to receive their new product.”

“We are working closely with our suppliers to return to normal production levels while ensuring the health and safety of all workers.”

As with iPhone delays, the unrest has shown Apple’s attempt to clean up its supply chain to shame.

“Like we’ve seen in Russia, companies doing business with autocratic regimes face huge risks – both in terms of reputation and supply chain,” said Vicky Wyatt, campaign director at SumOfUs. their”.

In his latest annual supply chain report, Sabih Khan, Apple’s head of global supply chain, praised the company’s “high standards of protection of rights, health, and safety” as well. as an effort to “raise standards across industries and support everyone in our global supply chain”.

Apple said in its 2021 report that it had assessed 1,177 companies in its supply chain and said it had blocked 9% of requests from potential suppliers about their records on rights and security. entirely in the workplace.

Foxconn has previously defended its measures as part of a

Foxconn has previously defended its measures as part of a “protracted fight” against the coronavirus – CARLOS GARCIA RAWLINS/REUTERS

Working conditions at Foxconn have come under scrutiny before. At the factory in Shenzhen, China, a series of worker suicides in 2010 focused international attention on conditions at their factories and prompted Apple to require additional audits at the company.

Foxconn did not respond to a request for comment. It has previously defended its measures as part of a “protracted battle” against the coronavirus. A spokesman said last month: “The well-being of our workforce is a top priority for the group’s operations.”

Technology analysts said they expect further disruption to Apple’s supply chain. UBS said that the wait time for new iPhones was “rising higher” due to “continuous closures due to Covid in China”. It’s hoped some models won’t be available until January.

Dan Ives, of Wedbush Securities, said: “This latest Covid-free situation is a blow to Apple during its most important holiday quarter.

“If Zhengzhou remains at a lower capacity for the next few weeks and continues to see increased unrest with workers, then this will obviously cause a major iPhone Pro shortage over the next few weeks. Christmas time is extremely important, especially in America.”

If China continues harsh coronavirus policy, despite widespread vaccination, companies can rethink their operations. The lockdown has led to a stalled recovery for Beijing. The IMF estimates China’s economy will grow 3.2% in 2022, down from 8.1% last year.

Teng Biao, a Chinese human rights lawyer in exile in the US, says the pressure of the ongoing lockdown is weighing on Western companies that rely on China to attract foreign workers. “Many factories and capital will leave China,” he said.

Apple has planned to move some of its factory operations to India and has begun manufacturing some devices in Vietnam.

“The no-Covid policy is a political mandate that will take a huge toll on the Chinese economy,” Teng said. “People will become increasingly pessimistic about China’s economic outlook.”

For Apple, the reputational cost can be much greater than iPhone delays.

“The reality is that customers don’t want iPhones made with human misery,” Wyatt said.

“If Apple wants to protect its brand, it needs to diversify into countries that are more respectful of workers’ rights.”

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