Foxconn Complains of Competition Poaching Workers in Vietnam

13 JUNE 2022 - Foxconn is dealing with a whole new supply chain issue: The poaching of its employees. Apple and Foxconn have been looking to shift some of their manufacturing out of China. That’s partly in response to the on-and-off COVID lockdowns, though it seems to be tied more closely to ongoing tensions between the Chinese government and the US.

Earlier this month we heard word that Apple manufacturing partner BYD was set to start a small run of iPad production in Vietnam. Now, Apple Insider says Foxconn is looking to grow its manufacturing presence in the country, though it’s having trouble with staffing. The piece highlights a Bloomberg report that has Foxconn chairman Young Liu illuminating the issue. Bloomberg has the chairman indicating that:

Its supply chain competitors are allegedly opening up facilities near to Foxconn campuses in the country, so they can poach workers and benefit from the existing knowledge and skills pool.

While he wouldn’t say which companies were stealing his workers, he did say “The move shouldn't be condoned.”

Question: If competitors can pay your employees enough to leave… any chance you could pay them enough to stay?