Until the Taiwanese company Wistron Corp takes care of the manner in which it treats its workers at its plant in the south Indian city of Bengaluru, its largest client iPhone maker Apple Inc will keep the Taiwanese company on provation and will not award any new contract manufacturer business to it. This was communicated by the United States based company to the Taiwanese company on Saturday.
This decision was taken by Apple after an investigation and audit of the working conditions at the Wistron factory following violence at the factory in India’s Karnataka state. The early results of the Apple audit found that Wistron, one of the largest contract manufacturers of Apple, had violated its ‘Supplier Code of Conduct’, said the Cupertino, California-based tech giant in a statement on Saturday.
Property, gear and iPhones at the factory were vandalised by contract workers on December 123 over charges of not being paid their due salaries for months. That incident resulted in the Taiwanese company sustaining losses worth millions of dollars while also being forced to temporarily close down the plant.
Proper working hour management processes had not been implemented by Wistron at the factory which “led to payment delays for some workers in October and November”, Apple said in the statement.
On Saturday, the Taiwanese company also conceded that proper payment of their salaries had not been made to some workers at the plant in Karnataka’s Narasapura and added that a top executive overseeing the company’s India business was being removed from the post.
Wistron’s progress on corrective action will be continued to be monitored by Apple, the iPhone maker said. .
“Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly,” Apple said. It added that issues at the plant are being further investigated by it. The factory is locate3d about 50 km outside of the south Indian tech hub of Bengaluru where one iPhone model is assembled.
“This is a new facility and we recognise that we made mistakes as we expanded,” Wistron said in a statement. “Some of the processes we put in place to manage labour agencies and payments need to be strengthened and upgraded.”
(Adapted from Dawn.com)