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Foxconn factory making iPhones in China sees worker exodus due to Covid

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For more than two weeks, Zhuo, who works at Foxconn’s iPhone assembly line in Zhengzhou, was trapped inside the sprawling campus as the company battled a coronavirus outbreak amid its peak season. of production.

As the factory instituted government instructions to isolate itself from the world in what’s known as “closed-loop” management, 19-year-old Zhuo watched as co-workers were transported to abandoned buildings repurposed as recovery centers. quarantine. The company pressured people to return to work before it was clear they weren’t contagious.

On Friday, Zhuo decided to run away. He scaled a seven-foot wall, ducked under a fence through a hole already dug by workers who fled before him, and walked almost 15 miles before being led by a passerby.

Few signs that China is trying to escape its “zero covid” trap

“We were about 200 that night. It was like a prison escape movie,” Zhuo said by phone from a quarantine hotel near his home in Henan province. Zhuo did not give his full name for security reasons.

Foxconn is struggling to contain a worker exodus that threatens to cripple production at the huge factory housing 200,000 workers, half of the world’s supply of iPhones. The dilemma facing one of the world’s largest electronics makers also casts new light on the economic and social costs of China’s insistence on pursuing “zero covid”.

China is one of the few countries in the world to implement a zero covid policy through lockdown, mass quarantine and testing. In an attempt to mitigate its impact on an already struggling economy, authorities have ordered companies to maintain production through “closed-loop” management, effectively locking workers indoors to keep factories running.

After six cases were discovered in Zhengzhou in the central province of Henan on October 12 and the next day on the 11th, the factory suddenly imposed closed-loop measures, preventing its 200,000 workers from going beyond their shifts. work and dormitories.

In interviews with The Washington Post, workers said they were pressured to return to work before it was clear they weren’t contagious, sent to quarantine centers that housed both confirmed cases and close contacts uninfected, and left without medicine or enough food. After years of government propaganda warning of the dangers of the virus and a lack of information from the company, factory workers panicked over the possibility of catching it.

Videos posted on social media showed workers leaving the company on foot, walking along highways and through fields. Zhuo, administrator of a Foxconn staff chat group, estimates that up to 60,000 people have left. In online discussions, people compared the walkouts to a 1942-43 famine that sent more than 1.5 million Henan residents on the road in search of food.

” They Do not Care About Us. Executives keep saying we can’t stop production,” he said, noting that officials were worried about meeting demand for China’s upcoming ‘double eleven’ online shopping holiday on November 11th.

Foxconn did not respond to requests for comment. He said in public statements that the mass infection claims were rumors and that production remained “relatively stable”.

Inside the factory, workers paint a different picture. Han Xiuhong, 47, who works on packaging at the Zhengzhou factory, was sent to an unfinished apartment where she shared a room with seven other people, a mix of infected patients and healthy close contacts. Food deliveries depended on how busy the volunteers were and no medicine was given. When she complained online that she was more likely to starve to death than covid, she was harassed by the building manager and the police who pressured her to delete her posts.

“I had to sleep on the floor because there weren’t enough beds. The windows were closed to prevent suicides,” she said. Her husband took to social media to ask for help, but within hours his messages had been deleted. His account on Douyin, the national version of TikTok, was suspended for posting “unverified information”.

Analysts say covid checks at Foxconn’s Zhengzhou factory could affect 10% of global iPhone production while Reuters, citing an unnamed source, reported that iPhone production could drop 30% this month. In an interview with Chinese trade publication Yicai, a Foxconn official said about 60% of staff in his department were still working and production could be cut in half.

China waits until end of Congress to release data on underperforming growth

The company is another example of how China’s covid controls are slowing an economy already battered by rising unemployment and a housing market slump. After the close of a key party meeting where Chinese leader Xi Jinping secured a third term and reaffirmed his commitment to zero covid, Chinese stocks plunged as the yuan weakened to a low of nearly 15 year. Economists polled by Bloomberg expect China’s GDP growth to be below 5% for each year through 2024 due to a slow exit from covid measures.

On social networks, nationalist Internet users have called on Foxconn, a Taiwanese company which accounted for nearly 4% of Chinese exports in 2021, to “get out” of China. Others turned their anger on the authorities.

After testing positive for the virus, Zhou Mengyuan, 26, was among a group of 20 workers sent to quarantine in company dormitories where they received meals and medicine until volunteers were also infected. Deliveries stopped and sometimes they didn’t receive food for days.

On Sunday, he was told he would have to return to work. “They won’t let us do PCR tests, they want us back to work. Everyone in the dorm is very emotionally unstable,” he said, speaking via video from the dorm where his colleagues could be seen lying on bunk beds scanning their phones.

“Today I also have to go back to the factory. I feel hopeless. Why doesn’t the government help us? He asked.

Authorities sent a work team to oversee the company’s response while provincial governor Wang Kai visited the factory on Tuesday.

Foxconn said workers are free to leave if they feel unsafe and has set up pick-up points to take people by bus as nearby towns have organized buses to take workers home.

To motivate workers to stay, Foxconn announced up to 15,000 yuan ($2,000) in cash incentives for those who show up for work in November, according to a message on its internal app seen by The Post.

Foxconn’s situation may prompt some introspection about covid policy. The Zhengzhou Center for Disease Prevention and Control wrote in a statement on Sunday, “Covid-19 is not scary. It can be prevented and it can be treated.” In Guangdong, Party Secretary Huang Kunming called for a “precision” strategy that strikes a balance between economic development and pandemic prevention.

On Monday, Foxconn released a statement saying it hopes workers will return once the situation stabilizes. Zhuo, who fled last week, may return. He found a good life at Foxconn where he had friends and a decent salary for someone who never went to high school.

“If it hadn’t been for the epidemic, I would have stayed,” he said. “When it’s over, I could go back to work for another month. I haven’t made any money this year and need to save some for Lunar New Year.”



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