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India – Apple supplier Wistron on probation as it apologises for mishandling wages

22 December 2020

Apple Inc. has put a supplier, Wistron Corp., on probation after violence took place at the supplier facility near Bengaluru, India, Reuters reported.

Apple will not award the company new business at Wistron’s iPhone factory until it has addressed the way workers were treated. Apple noted the company breached its “Supplier Code of Conduct.”

Apple said, “Our preliminary findings indicate violations of our 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.”

The tech giant noted that Wistron had taken disciplinary action and was in the process of "restructuring their recruitment and payroll teams" in Narasapura, the Indian region where the factory is located.

Violence broke out at the facility over alleged nonpayment to contingent workers, according to press reports, and iPhone production was temporarily stopped. One official said staffing firms at the facility could be blacklisted for failing to pay wages and that there were 8,500 temporary workers at the site.

However, staffing firms said last week they are looking into the situation and have a zero-tolerance policy for noncompliance.

The supplier has apologised for mishandling wages at the facility, saying it will correct the problems that led a group of angry workers to damage its facilities a week ago.

Wistron spokeswoman Joyce Chou said Wistron has investigated and discovered the workers had legitimate complaints. It has removed the vice president who oversees its business in India and started an anonymous hotline for complaints and created other avenues for employees to disclose their concerns.

“We deeply regret this and apologise to all of our workers,” Chou said.  “This is a new facility, and we recognise that we made mistakes as we expanded. Some of the processes we put in place to manage labour agencies and payments need to be strengthened and upgraded.”

CNN reported that Apple had placed another supplier, Pegatron, on probation last month for violating its labour code by having some student workers in China work nights and overtime. However, CNN reported a protest against Pegatron last week. Radio Free Asia said the protests included thousands of temporary workers.

Apple regularly monitors suppliers and releases an annual report on steps it is taking to ensure compliance with Apple’s rules. The most recent report came out in May.