- 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.
