Foxconn knelt and licked the United States, finally recognized the importance of the mainland market, and retained employees with a salary of 10,000 yuan
News reports that Zhengzhou Foxconn paid $10,000 to keep employees fleeing on foot in order to secure iPhone 14 production, a move that contrasts sharply with its former boss, Terry Gou, and clearly illustrates the current predicament facing Foxconn. Recently, Foxconn said that Zhengzhou Fu*** brought huge losses to Foxconn and reduced its performance in the fourth quarter of last year.
According to people familiar with the matter, Foxconn's current employee allowance in Zhengzhou has been raised from the original 50 yuan per day to 400 yuan per day, and if all employees participate in insurance, the subsidy alone can reach more than 10,000 yuan per month, and this still cannot maintain the production capacity of Zhengzhou Foxconn, and Foxconn will make more efforts in this regard.
On the 13th of this month, Foxconn, located in Zhengzhou, began to implement the "hourly system", with 30 yuan an hour as the standard, and more than 15 days according to the standard of normal employees, and give a daily subsidy of 400 yuan;In addition, in order to facilitate the return of leavers to work, from mid-October to November 5, returnees will receive a care subsidy of 500 yuan, and a stable post subsidy of 3,000 yuan for workers who have worked for 30 days.
Foxconn gave such a large subsidy, so that Foxconn faced a huge labor shortage in Zhengzhou. At its peak, Foxconn had 300,000 employees, but in this crisis, the number of employees was only about 200,000, and the shortage of employees caused by walking home caused a big hindrance to the production of the iPhone 14, so Foxconn had to spend more money to recruit people to meet Apple's demand.
Foxconn's president, Terry Gou, is trying to extricate himself from the predicament of China's "production", he believes that China's production capacity must be guaranteed, he must be guaranteed in the mainland, so he must succumb to this fact, and in fact, from the perspective of Foxconn's growth history, the mainland market is crucial to his success.
Foxconn's boss Terry Gou, before coming to the mainland to invest, was just a small boss, he was inconspicuous in many foundries in Taiwan, in the late 1980s, Shenzhen launched a lot of good ways to attract foreign investment, Terry Gou was keenly aware of the business opportunities, so he set up a factory in Shenzhen, Foxconn took off from this, with Nokia and other overseas products as the main production base, becoming one of China's well-known enterprises.
When Apple released the landmark iPhone in 2007, ushering in the era of smartphones, Foxconn established itself as the world's first generation manufacturer of the iPhone. However, when Shenzhen began to move towards high-tech industries, the production model of labor-intensive enterprises such as Foxconn has gradually faded out of people's vision, especially Foxconn's strict requirements for employees to go to the bathroom, and even the time and frequency of going to the bathroom have been strictly controlled. Foxconn's factory in Shenzhen shut down 12 times in a row during 2010, forcing Foxconn to find another way to make a living.
Foxconn opened a factory in Zhengzhou in 2010. In 2010, Foxconn, in Zhengzhou, quickly became the largest company in Chinese mainland, employing 300,000 people, making Foxconn a lot of money.
Headquartered in Zhengzhou Airport, Foxconn's GDP in 2012 only exceeded 20 billion yuan, and in more than 10 years after Zhengzhou Foxconn built its own factory, its GDP has exceeded 110 billion yuan, and Zhengzhou's total exports in 2020 were 326 billion US dollars, with Zhengzhou Foxconn accounting for 80%, and Foxconn has made huge profits from it.
The reason why Foxconn can succeed in the mainland is inseparable from the tax reduction policy and policy subsidies for Foxconn, but Guo Taiming regards all this as "personal struggle", and he is ashamed to say: The United States has invited Guo Taiming to build a factory in the United States, and Guo Taiming has also taken out billions of dollars, but Guo Taiming has been unwilling to pay subsidies after building a factory in the United States, and now the American factory has become an unfinished factory.
Gou responded to Apple's request to set up factories in India and Vietnam, but due to the influence of local culture and the ** chain system, the output of factories in India and Vietnam is far lower than that in Chinese mainland, and to this day, 80% of iPhone production is still manufactured in Chinese mainland, and Gou finally confirmed the importance of Chinese mainland.
This is also why Zhengzhou Foxconn will give a subsidy of 10,000 yuan every year to improve production efficiency, but since October last year, Foxconn has been in Zhengzhou, and many people have chosen to "go back to their hometowns", causing negative effects, so that it is difficult for Foxconn to recruit suitable people for a salary of more than 10,000 yuan, which makes Guo Taiming very annoyed, and it is time to reflect on it.