Apple Suppliers Struggling to Hire Enough Workers Ahead of iPhone 13 Launch
Apple suppliers manufacturing the iPhone 13 models are struggling to hire enough workers ahead of the expected launch of new devices in September, according to the South China Morning Post.
In an attempt to attract workers to meet demand for the iPhone 13 lineup, Apple suppliers in China are significantly raising their starter bonuses. Foxconn's factory in Zhengzhou, which is estimated to manufacture around 80 percent of the world's iPhones, has raised its new hires bonus to a record high of 10,200 yuan (U.S. $1,578).
Likewise, Lens Technology has doubled its bonus 5,000 yuan in February to 10,000 yuan in May, while Luxshare Precision's factory in Guangdong has doubled its internal referral bonus from 2,500 yuan in April to 5,000 yuan in May, with a top-up bonus of 3,800 yuan for returning workers who previously left the company.
Over the past three years, Apple has added more new suppliers from mainland China to its vendor list than any other country, but simultaneously the growth of China's labor force has peaked as factory jobs have started to lose their appeal and more workers move out of industrial labor, leading to companies having to lure in workers with more attractive pay packages.
The current aggressive hiring spree seeks to combat increasingly ramped-up production for the iPhone 13 models, which are believed to be on track for launch late next month.
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Top Rated Comments
Apple controls what they pay their suppliers and contract manufacturers who in turn pay their employees. If Apple paid them better, they would be able to pay their employees better. But Apple likes to squeeze them to maintain their profits.
In a landmark development for the way Western companies do business in China, Apple Inc said on Thursday it had agreed to work with partner Foxconn to tackle wage and working condition violations at the factories that produce its popular products.
It's not as if Apple hasn't done anything in the past to improve wages or work conditions
Foxconn Technology’s promise comes as Beijing is pushing foreign companies to share more of their revenues with Chinese employees. It follows a report by a labor auditor hired by Apple Inc. that found Foxconn was regularly violating legal limits on overtime, with factory employees working more than 60 hours per week.
Foxconn, owned by Taiwan’s Hon Hai Precision Industry Co., promised to limit hours while keeping total pay the same, effectively paying more per hour.