Technology

Apple puts Taiwanese iPhone supplier Wistron on probation over non-payment of wages

Updated : December 19, 2020 03:26 PM IST

Apple on Saturday said it has put its Taiwanese iPhone supplier Wistron Corporation on probation after finding that the company violated Apple's supplier code of conduct by failing to implement proper working hour management processes.

"We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions. Apple employees, along with independent auditors, will monitor their progress. Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly," it said in a statement.

Also read: iPhone maker Wistron to remove India vice president after plant violence; apologises to workers

This comes after several thousand contract workers at Wistron factory in Karnataka angered over alleged non-payment of wages destroyed property, factory gear and iPhones at the plant early on December 12, causing crores millions of dollars in losses to the Taiwanese contract manufacturer and forcing it to shut the plant.

Apple said it has hired independent auditors to work around the clock to investigate the issues which occurred at Wistron’s Narasapura facility in Kolar district of Karnataka.

"While these investigations are ongoing, our preliminary findings indicate violations of our 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," the company said.

Also read: Wistron slashes estimate of losses from Kolar violence to Rs 26 crore-Rs 52 crore from Rs 437 crore

Further, it said, "As always, our focus is on making sure everyone in our supply chain is protected and treated with dignity and respect. We are very disappointed and taking immediate steps to address these issues."

"Wistron has taken disciplinary action and is restructuring their recruitment and payroll teams in Narasapura. They have also set up an employee assistance program and a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi, and English to ensure all workers at the facility can voice any concerns, anonymously," it added.

Also read: Wistron incident: Karnataka govt finds labour law violations, pulls up company, contracting firms

The manufacturing plant of Wistron in Kolar continues to remain shut as the police is still investigating the scene where thousands of workers went on a rampage in the early hours of December 12. The police has filed an FIR against 7,000 people in the incident, including against 5,000 unnamed contract workers, and 2,000 unknown persons.

Apple puts Taiwanese iPhone supplier Wistron on probation over non-payment of wages

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