- Key Apple Inc AAPL iPhone assembler Hon Hai Precision Industry Co Ltd HNHPF, operating as Foxconn Technology Group, relaxed most anti-Covid restrictions at its factory in Zhengzhou, China.
- Foxconn ended its "point-to-point" system, relaxing employees' daily movements between their dormitories and the campus, Bloomberg reported. Foxconn also reopened its on-site cafeteria.
- Foxconn first shut its cafeterias and limited workers' movements in October to limit the pandemic resurgence.
- Also Read: Key Apple Supplier Foxconn Ropes Taiwan Semiconductor Chip Veteran For Newly Created Role
- The shutdown triggered a food crisis and trash-filled facilities, prompting workers' exodus.
- After Foxconn teamed up with local authorities to hire new staff, the workers revolted in November over compensation and safety practices.
- Violent protests broke out as hundreds of workers clashed with security personnel.
- Apple and Hon Hai warned against iPhone production loss due to the Zhengzhou crisis, responsible for Apple's high-end Pro models.
- However, Foxconn stopped providing them with three free meals per day. Foxconn will deduct the meal expenses from staff wages.
- It agreed to provide subsidies to those who regularly work from December 16 to December 31.
- Foxconn will provide free meals to Covid patients who choose to stay at company-appointed accommodations.
- Foxconn was instrumental in persuading China to ease its Covid-19 policies.
- Foxconn founder Terry Gou's letter to Chinese leaders warned against its strict Covid controls costing China's leadership in global supply chains.
- Gou also sought more transparency into restrictions on the company's workers.
- Price Action: AAPL shares are trading lower by 0.85% at $141.99 premarket on the last check Thursday.
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