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India – Adecco Group, Randstad and other staffing firms under scrutiny as report shows Apple plant workers were underpaid working 12-hour shift amid possible labour violations

17 December 2020

Staffing firms Randstad, Adecco Group, Quess Corp, and Innovsource, which provide third-party employees to Apple’s Taiwan-based contractor Wistron, were questioned following a union report that showed workers at an Apple facility were mandated a compulsory 12-hour work shift and the payments were far below what was promised. 

At the same time, a labour report seen by the Economic Times (paywall) showed labour violations from the staffing firms.

Earlier this week Apple Inc said it was investigating whether Wistron flouted supplier guidelines at an iPhone manufacturing facility in India, after some workers ransacked the plant in a protest over unpaid wages.

Meanwhile, Randstad and the other staffing firms said they were helping with investigations on the violence at the facility. The staffing firms added that they are prepared for a deeper probe by Wistron and authorities to check if there were any payment delays that caused the violence.

According to Business Today, a report from the All India Central Council of Trade Union showed that the iPhone facility workers were mandated a compulsory 12-hour work shift and the payments were far below the promised INR 22,000 (USD 298) monthly wages with no grievance redressal mechanism.

The report added that the staffing companies ‘such as Quess Corp, Adecco, Innov Source, Randstad are “under scanner” for contracting labour to Wistron.’

Rahul Banerjee, Vice President, Corporate Affairs, Quess Corp said the company has a policy of not commenting on specific companies, owing to potential customer and contractual obligations.

"We trust the legal system will move quickly to redress the situation and allow this critical manufacturing facility to come online at the earliest. We are extending all possible support to legal agencies conducting investigations, including providing them with documents," Banerjee said.

Adecco Group in a statement said that it was working with all parties to investigate these allegations and is ‘committed to defending the rights of employees to a fair compensation and employment benefits.’

The News Minute reports that the Karnataka Labour Department has found contract employees at Wistron’s iPhone manufacturing unit in Karnataka’s Kolar were not given offer letters, employment contracts and were denied salary slips on request.

The report, however, indicates that the companies including Quess Corp, Adecco India Ltd and Creative Engineers had violated norms related to hiring personnel. However, it did not specify whether the other violations it noted were incurred by Wistron or the contracting companies.

According to the report, “Creative Engineers and Quess Corp Ltd, had obtained permission to hire 2,350 and 1,350 employees for Wistron. They hired 2,410 and 1,511 personnel in total and had not obtained permission to hire the additional employees. Adecco India Ltd had obtained permission to hire 3,000 employees but they hired 111 additional personnel without prior approvals,” the report added.

“We don’t know what action the Union government will want us to take. In such a situation, the contracting companies could be blacklisted,” a senior official with the Labour Department told the News Minute.

Another finding was that the workers’ salaries were deducted, which was in violation of the Contract Employees (Regulation and Abolition) Rules.

A source at Quess Corp told The News Minute on condition of anonymity that Wistron hasn’t been able to meet with the increased workload coming its way, especially after the lockdown ensuing from the pandemic.

“They went up from 2,000 employees to nearly 10,000. The unprecedented increase in workforce in a rather abnormal pandemic situation impeded their ability to put systems that would have enabled them to discharge their fiduciary responsibilities,” the source said.