Apple suppliers left China for Vietnam to pay lower wages. Now they are desperate because they cannot find workers.

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Apple suppliers left China for Vietnam to pay lower wages. Now they are desperate because they cannot find workers.

Apple, China, Desperate, find, left, Pay, suppliers, Vietnam, wages, workers

Apple has been moving its factories out of China for years and seeking partners and suppliers in other countries. India, despite its recent problems, remains one of the company’s biggest bets, as does Vietnam. And among the many reasons to seek allies beyond China is that China no longer wants to be the world’s big factory. Not at any price of course.

Apple’s main partners went to countries like Vietnam to hire employees with more favorable conditions for their own economies, even if it was not so favorable for the workers’ pockets. It is precisely this approach that has turned against them, since now It is the Vietnamese who do not want to work in these conditions.

Too much supply for so little demand

“Desperate” is how experts close to this information literally describe Apple partners. As we mentioned in the introduction, dozens of companies specializing in the assembly of electronic products, especially semiconductors, have decided to open factories in countries like Vietnam under the clear pretext, albeit unofficial, of power. pay workers less and save production costs.

Foxconn, Goertek or Luxshare are just a few examples of these companies that also partner with Apple to supply parts that will then be used to manufacture devices such as iPhones, MacBooks and even AirPods. These are the ones who benefited In Vietnam you pay half the salary than in Chinaeven now that the Vietnamese minimum wage has increased by more than 11%.

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Well now they meet problems finding suitable workers for the position. According to specialists, there is more job supply than demand and this is why there are currently several companies competing to attract a small number of specialized workers.

In fact, it is common to see how These workers move from one company to another. Everything depends on the conditions offered to them and competition between companies is fierce. However, even with good salaries, they cannot find enough workers.

It’s not just the salary, it’s also the hardness of the work

Foxconn
Foxconn

The Foxconn factory, one of Apple’s main partners (Image: Wikimedia Commons)

In some factories, they even offer high bonuses to attract employees. However, it appears that even with these resources, they are not able to fill the vacancies they need. There are few specialized workers and those who could be suitable reject it directly and it is no longer just for a reason of salary.

Anyone who tastes caviar never wants to eat it chopped again. Factory jobs are physically and psychologically tough. They require many hours for wages that, even in the best case, do not compensate. David Yuen-Tung Chan, a researcher at Lingnan University, believes that this change in mentality is occurring especially among younger generations who saw their parents working in factories and, knowing the difficulties, prefer to choose other paths.

That said, it remains to be seen how companies will resolve this conflict, given that the decision to leave China to save costs worked for them, just as economic incentives are of no use. Therefore, part of the strategy that many develop is to provide opportunities for job growth and don’t stay sine the as mere pawns at the bottom of the factory ladder.

Cover image | Foxconn

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