We learned in June that Apple suppliers in China were having to increase bonuses to help them recruit enough iPhone 13 workers, and a new report today says that they are still struggling to do so.
Both Foxconn and Pegatron were already offering bonuses worth well over a month’s average salary, but even this has not proved sufficient…
The seasonal nature of iPhone production means that Foxconn, Pegatron, and other Apple suppliers have to recruit huge numbers of workers for a few months of the year. The challenge increases as the country becomes increasingly middle class, with greater availability of better-paid jobs in cities.
It can be especially difficult to attract enough workers to a job they know will be only short term, so the companies mostly rely on attracting people from rural areas – where average incomes are extremely low – with the idea that they can earn enough money in iPhone season to sustain their family for the rest of the year.
Back in June, we learned that Foxconn and Pegatron were offering recruitment bonuses of up to $1,312 against average monthly earnings in the $772 to $926 range, alongside incentives for encouraging family members and friends to apply.
Larger bonuses for iPhone 13 workers
Today’s report in the South China Morning Post says that these bonuses have now been increased as Foxconn and other Apple suppliers struggle to recruit enough workers.
Apple suppliers in China, including the world’s largest iPhone factory, are raising their starter bonuses amid stiff competition for the shrinking pool of young people willing to do manufacturing jobs, as production ramps up on new models expected to launch in September.
Foxconn Technology Group’s factory in the central Chinese city of Zhengzhou, which produces an estimated 80 per cent of the world’s iPhones, has raised the bonus for new hires to another record-high of 10,200 yuan (US$1,578) if they stay for at least 90 days upon enrolment in its integrated Digital Product Business Group (iDPBG), which assembles iPhones.
The offer came just two weeks after it raised the reward amount to 10,000 yuan on July 23.
Out of the total bonus, the iDPBG worker will receive 9,500 yuan while 700 yuan goes to the person who referred them, according to the company’s latest recruitment post on Thursday.
The piece says that Luxshare – which will be assembling iPhones for the first time this year – and touchscreen supplier Lens Technology are offering similar bonuses.
We recently rounded up everything we know so far about the iPhone 13.
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Author: Ben Lovejoy