What you need to know
- Wistron has apologized to workers at an iPhone factory in India it says were not paid correctly or on time.
- Apple says it has placed the supplier on probation, and that it will not receive any new business from Apple in the meantime.
- Wistron has fired its VP in charge of India following a riot at the factory last week.
Both Apple and Wistron have admitted that workers who destroyed an iPhone plant during a riot last week were not paid on time or correctly.
According to ET Now:
In a crucial development, one of Apple's suppliers Wistron has removed its Vice-President in charge of India and has admitted to lapses in paying its workers here, a week after workers went on a rampage at its factory near Bengaluru, causing damage worth millions of dollars.
Wistron reportedly said that investigations had revealed that "some workers were not paid correctly, or on time." The news follows a riot at a factory in Karnataka last weekend, that saw employees destroy cars, factory machinery, and offices over allegations they had not been paid.
Wistron said, "we deeply regret this and apologize to our workers". Wistron admitted the plant was a new facility and that "we made mistakes as we expanded". Furthermore, it said some processes in place for the management of labor and payments needed to be strengthened and upgraded. Wistron says it has removed the VP who oversees its business in India, and that its top priority is to ensure workers received their full pay, setting up a 24-hour hotline for employees to call about their grievances.
A statement from Apple confirms these findings, from HTTech
Apple has issued a statement regarding the violence that erupted at the Wistron factory over the last weekend and the subsequent investigations carried out regarding its causes. As per the statement, Apple is putting Wistron on probation and the company is not going to receive any new business from Apple till corrective measures are enforced and completed.
Apple said that "preliminary findings indicate violations of our Supplier Code of Conduct by failing to implement proper working hour management processes" which led to delays of payments for some workers in both October and November. Apple said it was "very disappointed" and had taken immediate action. Apple has further placed Wistron on probation, stating the supplier will not receive "any new business from Apple before they complete corrective actions". Apple said its main objective was "to make sure all the workers are treated with dignity and respect, and fully compensated promptly."
Reports this week claim an influx of several thousand employees who were hired over the course of 2020 may have overwhelmed Wistron's administration systems, and that the firm only had three HR employees to manage more than 10,500 workers.