Foxconn Technology Group, which assembles most iPhones for Apple Inc., is easing most of its anti-Covid curbs at its factory in Zhengzhou, China, as reported by news agency Bloomberg. According to the report, this move is considered to be a significant step forward for the facility that had become a flashpoint in China’s efforts to contain infections.
Foxconn, whose formal name is Hon Hai Precision Industry Company, said it is now ending its “point-to-point” system, in which it required employees to restrict their daily movements to between their dorms and the campus, according to a statement on its official WeChat account Wednesday night.
The company also reopened its on-campus cafeterias and will no longer provide three free meals per day, it said. The lack of access to cafeterias in what’s known as iPhone City had become a significant hurdle to keeping workers fed during the pandemic, sparking an exodus of thousands of employees.
Meal expenses will now be deducted from staff wages, the company said, adding that it will provide 15 yuan per day of subsidies from December 16 to December 31 to those who work regularly.
The company will continue to provide free meals to Covid patients who choose to stay at company-appointed accommodations, it added.
The company has been grappling with strict Covid curbs that have fuelled discontent among workers over conditions at the factory. Output of the Apple device was disrupted ahead of Christmas and January’s Lunar New Year holidays, with many employees either having to isolate to combat the spread of the virus or fleeing the plant.
After the November unrest that saw workers clash with security personnel, Foxconn could have seen more than 30 per cent of the Zhengzhou site’s November production affected. Foxconn hasn’t disclosed details of the impact of the disruption on its production plans or finances.