- Apple Inc places probation on supplier Wistron Corp
- Wistron is a Taiwanese contract manufacturer business.
- Contract workers are angry over unpaid wages.
- The destruction is inflicting millions of dollars losses to Wistron
Apple Inc puts probation on supplier Wistron Corporation saying it would not award the Taiwanese contract manufacturer-new business. However, the probation will be until it addresses the way workers were treated at its southern India plant.
Apple is putting one of the companies it hires to build the iPhone on notice for violating labor law. This has happened for the second time in 2 months.
The giant has put Taiwanese manufacturing giant Wistron on “probation” meaning it won’t receive any new business from Apple until it sorts things out after the supplier was found exploiting workers at a plant in India.
Apple tells Wistron has failed to implement proper working hour management procedures, which “led to payment delays for some workers in October and November”.
Wistron on Saturday admitted that some workers at the plant in Karnataka’s Narasapura have not been paid properly or on time, Along with removing a top executive who was overseeing their India business
Apple will continue to monitor Wistron’s progress on corrective action. As their main objective is to make sure all the workers are treated with dignity and compensated fairly.
Apple Puts Probation On Wister
Apple has suspended new business with its key supplier, Wistron. The tech giant said on Saturday that the Taiwanese company violated rules in treating employees with “dignity and respect”. And that led to the violence at the Narasapura plant.
Apple hired Independent auditors too, who have been working continuously to investigate the issues which occurred at Wistron’s Narasapura facility.
The preliminary findings indicate violations of their Supplier Code of Conduct by failing to implement proper working hour management processes.
This led to payment delays for some workers in October and November,” Apple said in a statement.
Wistron To Loose Around 50 Crores
Workers employed by Wistron’s contract agencies went on a rampage on December 12, citing ill-treatment and non-payment of salaries, which resulted in damage to equipment and machinery. Wistron estimated the losses to be around Rs 50 crore.
The violence attracted global attention as Apple is looking at new factories outside China, along with India, wooing global electronic manufacturers to set up units in the country.
Contract workers angry over unpaid wages destroyed property, gear, and iPhones on Dec 12, causing millions of dollars in losses to Wistron and forcing it to shut the plant