Wistron Factory in Narsapura, about 60 km from Bangalore on December 13th.
Photographer: Manjunath Kiran / AFP / Getty Images
Photographer: Manjunath Kiran / AFP / Getty Images
Wistron Corp., Apple Inc.’s flagship iPhone assembler in India, it fell by up to 4% after the US technology giant put it to the test for the fall in labor practices that sparked a riot.
Apple said its preliminary investigations found that the Taiwanese supplier – the first to produce the US company’s flagship device in India – had failed to implement proper working hours management processes for a rapidly growing staff. This delayed payment to some employees in October and November, and Apple said it is now holding a new business until Wistron fixes the problems.
Hundreds of workers stole from the Wistron factory in Narasapura, near Bengaluru, this month, affecting properties and robbing thousands of iPhones and laptops, according to local media. This has brought to light the challenges facing Apple as it tries to diversify its huge production base for everything from iPhones to Macs far from China because of Trump-era trade and political sanctions. The conflict is also disappointed by Prime Minister Narendra Modi’s attempt to attract foreign investors for his “Make in India” pilot project, especially companies wishing to leave economy no. 2 of the world.
“Wistron has taken disciplinary action and is restructuring its Narasapura recruitment and payroll teams,” Apple said in a statement over the weekend. “We have tested Wistron and will not receive any new business from Apple until corrective action is completed. Apple employees, along with independent auditors, will monitor their progress. “
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The Taiwanese company said it had removed the vice president who oversaw operations in India and launched a hotline for workers to express their concerns anonymously.
Wistron quadrupled workers at that Indian factory in about eight months, increasing production just as the world’s most valuable company began direct online sales in the South Asian country. But its systems were not robust enough to withstand the flood, people familiar with the matter said.
The incident could now affect the relationship with Apple, which has shown a greater desire to counter violations of its hundreds of suppliers. The American giant and its production partners have been criticized in the past for allowing poor working conditions in China. Last month, Apple suspended new business with Wistron’s larger rival, Pegatron Corp., after discovering violations of a student program for workers.
Wistron estimated the damage at up to NT $ 200 million ($ 7.1 million) and said it was doing its best to resume operations at the factory. The Hsinchu-based company also said the protesters were not its own workers, suggesting they could have been hired by employment agencies, although it is unclear who is responsible for paying them.
“This is a new facility and we recognize that we have made mistakes as we have expanded,” the Taiwanese company said in a statement on Saturday. “We are deeply dedicated to our business and employees in India. We work diligently on corrective action to ensure that this does not happen again. “
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