Apple has placed its contract manufacturing partner Wistron on probation and won’t give the Taiwanese firm any new business until it took “complete corrective actions” following lapses at its southern India plant.
The iPhone maker said on Saturday that its employees and independent auditors hired by the company to investigate the issues at Wistron’s Narasapura facility found that Apple’s ‘Supplier Code of Conduct’ was violated at the facility and Wistron failed to implement proper working hour management processes. This led to “payment delays for some workers in October and November,” Apple said, citing preliminary findings.
“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,” Apple said in a statement.
Thousands of workers rioted over unpaid salaries — of about $200 a month — on December 12 at Wistron’s Narasapura facility, destroying property, iPhones, and factory equipments. Wistron, a key manufacturing partner for Apple in India, has this year quadrupled workers and ramped up its production capacity in the South Asian nation.
In a statement, Wistron acknowledged that some workers at its plant had not been paid properly. It also announced it was removing a top executive who oversaw Taiwanese firm’s India business.
More to follow…
