Workers Rebel Against China's Major Apple Supplier, Question Country's Covid Decree
Shanghai Apple Inc (NASDAQ: AAPL) supplier, Quanta Computer Inc's (OTC: QUCPY) low-wage workers, rebelled against their supervisors, demanding more freedom, Bloomberg reports.
The workers locked down by government ruling and isolated from the outside world for almost two months were a part of violent clashes, mounting infections, and vacant factory floors.
During the April lockdown, Quanta had to shut off most of its factories and seal workers.
Production resumed at reduced capacity under a closed-loop model.
Quanta continued to pay workers their basic salary of around 3,000 yuan ($450) that month, a fraction of the average wage in China's most prosperous city, Bloomberg notes.
Quanta is unlikely to be an isolated incident, economists suggested.
The fallout is real and growing, forcing China's biggest chipmaker and a major iPhone supplier to slash their outlooks for the second quarter.
Recently, a large group stormed a dormitory housing Quanta's Taiwanese managers following a dispute over the prolonged lockdown and pay.
The incidents led to experts questioning the sustainability of China's closed-loop model for the longer term.
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