Foxconn said it was ending its "point-to-point" system, which restricted daily movement of employees between their dormitories and campus.
Foxconn Technology Group, the primary assembler of iPhones for Apple Inc, is easing most anti-Covid restrictions at its factory in Zhengzhou, China - a facility that had become a flashpoint in the country's efforts to contain the infection.
Foxconn, also known as Hon Hai Precision Industry Co., said it is ending its "point-to-point" system that restricted employees to daily movement between their dormitories and campus was, according to a statement on its official WeChat account on Wednesday night
China is moving away from its long-standing Covid zero approach, which has hurt economic activity and sparked widespread discontent. Foxconn's move comes after local authorities lifted the "high-risk Covid" status on the area surrounding the plant earlier this week. Zhengzhou had already relaxed its virus-elimination measures for most parts of the city, eliminating mandatory Covid testing to enter public areas.
The Chinese government is easing restrictions despite a spike in infections and relatively low vaccination rates among the elderly. According to a new study by researchers in Hong Kong, nearly 1 million people in China could die of COVID-19 as the government rapidly curbs the pandemic.
"Foxconn will now need to address a potential increase in sick employees and a potential labor shortage," said Will Wong, senior research manager at IDC. , They said. "In addition to financial compensation, more initiatives will need to be taken to make employees happy."
Foxconn also said it has reopened its on-site cafeteria and will no longer offer three free meals per day. The lack of access to cafeterias, known as iPhone City, had become a significant barrier to feeding workers during the pandemic, leading to an exodus of thousands of workers.
The restrictions on the Zhengzhou campus were echoed across the country and beyond. Foxconn first closed its cafeteria and limited worker movements in October in an effort to limit the outbreak of COVID infections. This led to food shortages and facilities filled with garbage, causing workers to depart Zhengzhou by the thousands.
After Foxconn agreed with local officials to hire new workers, workers revolted in November over compensation and safety practices. Violent protests erupted after hundreds of activists clashed with security personnel.
Apple and Hon Hai warned they would lose iPhone production because of the trouble in Zhengzhou, which makes all of Apple's high-end Pro models. Bloomberg News reported in November that the shortfall is likely to be closer to 6 million iPhone Pro units.
The company said the cost of meals would now be deducted from employees' wages, adding that it would provide a subsidy of 15 yuan per day from December 16 to December 31 for regular workers.
The company said it will continue to provide free food to Covid patients who choose to stay in company-appointed accommodation.
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