Recently, Apple has been hitting headlines in India but all for the bad reasons. Lately, its supplier Wistron’s facility near Bengaluru got attacked by workers demanding unpaid wages. Reuters reported that the company has put Wistron on notice. As per the report, an early audit by Apple reveals that Wistron has violated the “Supplier Code of Conduct”.
It is a fact that Wistron has managed the working hours poorly which led to a delay in payment of wages. Wistron admitted that it has not paid some workers during October and November on time. Wistron assembles Apple’s iPhones like iPhone 7 and iPhone SE 2020.
The Reuters report says that Wistron planned to expand operations by hiring 20,000 workers in a year but it could not cope up with the scale of manpower and ended up violating several laws which led to the outrage.
The Karnataka government has done a quick inspection of the case and found that Wistron had 5,500 workers more than the allowed number. The inspection report further declares that there were several other violations too such as improper HR management, underpayment of wages for contract workers, and housekeeping staff. Wistron has also made female staff work overtime without proper authorization.
Now, due to Apple’s probationary action, Wistron will face delays in production which will take dent over its earlier 13 billion INR commitment for the next five years to leverage the PLI scheme. The Indian Govt recently approved cash incentives between 4 to 6 per cent of the Sale of goods locally made in the next 5 years from 2019 – 2020.
On the other hand, Apple said it will continue to monitor how Wistron manages to mitigate the violent attack which made it lose millions of dollars of property, gears, and iPhones.