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Apple puts iPhone-maker Wistron on probation

The company had said that it is investigating whether the Taiwanese contract manufacturer Wistron defied its supplier rules.

twitter-logoAnkita Chakravarti | December 19, 2020 | Updated 17:06 IST

Highlights

  • Apple has put iPhone-maker Wistron on probation following the debacle at Karnataka’s Naraspura plant.
  • Apple is is investigating whether the Taiwanese contract manufacturer Wistron defied its supplier rules.
  • Last week, Wistron Infocomm Manufacturing's facility was ransacked by Apple employees over allegations of unpaid wages and exploitation.

Apple has put iPhone-maker Wistron on probation following the debacle at Karnataka's Naraspura plant. The company had said that it is investigating whether the Taiwanese contract manufacturer Wistron defied its supplier rules. Apple said that it has hired independent auditors who along with the Apple employees are investing the matter. Last week, Wistron Infocomm Manufacturing's facility was ransacked by Apple employees over allegations of unpaid wages and exploitation.

"We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions. Apple employees, along with independent auditors, will monitor their progress. Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly," Apple said in a statement.

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. They have also set up an employee assistance program and a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi, and English to ensure all workers at the facility can voice any concerns, anonymously," the statement further read.

Apple is now probing whether there was a disparity in wages agreed and paid to the staff that led to the violent incident at the facility. The company will also investigate whether the employees were paid for the extra hours and wether they were paid as per the company guidelines.

Wistron had earlier announced that it would be India vice president Vincent Lee who oversees its unit in India. "Since the unfortunate events at our Narasapura facility we have been investigating and have found that some workers were not paid correctly, or on time. We deeply regret this and apologize to all of our workers," Wistron had said in a statement.

"Our top priority is to ensure all workers are fully compensated immediately and we are working hard to achieve that. We have established an employee assistance program for workers at the facility. We also set up a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi, and English to ensure all workers can voice any concerns they may have anonymously," the statement further read.

On December 12, more than 2000 employees who worked at the Wistron Plant in Naraspura went on a rampage destroying the company's equipment, furniture and even tried to douse vehicles that were present at the manufacturing plant. The offices of seniors executives were also attacked by the employees. The Wistron plant in Naraspura was used to manufacture iPhone SE, the most affordable iPhone, the Internet of Things (IOT) products and biotech devices.

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Tags: Apple | Wistron
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