Apple stopped ordering from the iPhone factory that owed workers’ wages
Apple Inc. announced it would suspend new orders from supplier Wistron Corp., in India, as the factory owed workers’ wages, leading to rioting worker protests.
Apple Inc. Apple Inc. 19/12 announcement will suspend new order from suppliers Wistron Corp., in India, due to deficiencies in labor management, which led to worker riots there.
In a statement, Apple said preliminary investigations revealed the Taiwanese company Wistron Corp. – supplier, iPhone manufacturer first of Apple in India – failure to follow proper working hour management procedures, resulting in delayed payments for some workers in October and November 2020.
Earlier this month, Wistron workers at a factory in Narasapura near Bengaluru sparked a riot over unpaid wages, many of which were arrested for violence and vandalism.
According to local media, these workers damaged property and robbed thousands of iPhones and laptops.
Sources close to the report said Wistron’s rapid recruitment and expansion in India put pressure on the company’s systems, affecting its management team as well as its human resources department.
Wistron has recruited more workers than is needed in India.
Apple says Wistron has taken disciplinary action and is restructuring its recruiting and staffing staff at Narasapura.
Currently, Wistron is in the “tracking” category and the company will not receive any new orders from Apple until the problem is resolved.
Wistron also announced the dismissal of the Vice President who oversees operations in India, and has opened a hotline so workers can voice their concerns.
In the past, Apple and its suppliers have been criticized for accepting poor working conditions in China.
Last month, Apple also suspended new business with Wistron’s bigger rival Pegatron Corp. After finding out labor violations in the student job program, and taking strong action to deal with a production line in China, it was accused of abusing workers for a long time.