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Workers at the world’s largest iPhone factory in China clash with police, videos show

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Workers at China’s largest iPhone assembly factory were seen confronting police, some in riot gear, on Wednesday, according to videos shared over social media.

The videos show hundreds of workers facing off with law enforcement officers, many in white hazmat suits, on the Foxconn campus in the central Chinese city of Zhengzhou. In the footage, now blocked, some of the protesters could be heard complaining about their pay and sanitary conditions.

The scenes come days after Chinese state media reported that more than 100,000 people had signed up to fill positions advertised as part of a massive recruitment drive held for Foxconn’s Zhengzhou plant.

Apple

(AAPL)
has been facing significant supply chain constraints at the assembly facility and expects iPhone 14 shipments to be hit just as the key holiday shopping season begins. CNN has contacted the company for comment on the situation at the plant.

A Covid outbreak last month had forced the site to lock down, leading some anxious factory workers to reportedly flee.

Videos of many people leaving Zhengzhou on foot had gone viral on Chinese social media earlier in November, forcing Foxconn to step up measures to get its staff back. To try to limit the fallout, the company said it had quadrupled daily bonuses for workers at the plant this month.

On Wednesday, workers were heard in the video saying that Foxconn failed to honor their promise of an attractive bonus and pay package after they arrived to work at the plant. Numerous complaints have also been posted anonymously on social media platforms — accusing Foxconn of having changed the salary packages previously advertised.

In a statement in English, Foxconn said Wednesday that “the allowance has always been fulfilled based on contractual obligation” after some new hires at the Foxconn campus in Zhengzhou appealed to the company regarding the work allowance on Tuesday.

Workers were also heard in the videos complaining about insufficient anti-Covid measures, saying workers who tested positive were not being separated from the rest of the workforce.

Foxconn has recruited 100,000 new workers for largest iPhone factory, state media reports

 

Foxconn said in the English statement that speculation online about employees who are Covid positive living in the dormitories of the Foxconn campus in Zhengzhou is “patently untrue.”

“Before new hires move in, the dormitory environment undergoes standard procedures for disinfection, and it is only after the premise passes government check, that the new employees are allowed to move in,” Foxconn said.

Searches for the term “Foxconn” on Chinese social media now yield few results, an indication of heavy censorship.

“Regarding violent behaviors, the company will continue to communicate with employees and the government to prevent similar incidents from happening again,” Foxconn said in a statement in Chinese.

A vital hub

The Zhengzhou facility is the world’s largest iPhone assembly site. It typically accounts for approximately 50% to 60% of Foxconn’s global iPhone assembly capacity, according to Mirko Woitzik, global director of intelligence solutions at Everstream, a provider of supply chain risk analytics.

Apple warned earlier this month of the disruption to its supply chain, saying that customers will feel an impact.

“We now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated,” the tech giant said in a statement. “Customers will experience longer wait times to receive their new products.”

As of last week, the wait time for those models had reached 34 days in the United States, according to a report from UBS.

Public frustration has been mounting under China’s unrelenting zero-Covid policy, which continues to involve strict lockdowns and travel restrictions nearly three years into the pandemic.

Last week, that sentiment was on display as social media footage showed residents under lockdown in Guangzhou tearing down barriers meant to confine them to their homes and taking to the streets in defiance of strictly enforced local orders.

— Michelle Toh, Simone McCarthy, Wayne Chang, Juliana Liu, and Kathleen Magramo contributed to this report.

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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