Lately, but not for good reasons, Apple has been making headlines in India. Recently, its Wistron supplier facility near Bengaluru, India, was attacked by employees seeking unpaid wages. Now as Reuters reports, Wistron has been put on alert by the firm.
An early audit by Apple indicates that the “Supplier Code of Conduct” has been breached by Wistron, according to the article. It obviously did not handle the working hours properly and this resulted in payment wages being postponed. As Wistron admits, it didn’t pay any employees on time during October and November. Wistron assembles Apple iPhones, such as iPhone 7 and iPhone SE 2020, if you don’t remember.
The study says that by adding 20,000 employees in a year, Wistron intended to increase operations. It could not, however, comply with the size of manpower, breaching many laws that contributed to the uproar. The outcome of the inspection by Karnataka Govt also reveals that Wistron had 5,500 more employees than the number allowed.
Some of the other violations include excessive HR management, contract employees’ underpayment of salaries, housekeeping employees. The organization has even had female workers work overtime without proper permission.
As a result of this because of Apple’s probationary intervention, the report says Wistron will face delays in development. This will require more than its previous pledge of $13 billion ($177 million) for the next five years to exploit the PLI system. If you note, 4-6% of the selling of products locally made in the next 5 years from 2019-2020 was recently approved by the Indian Govt.
That said, Apple says it will continue to track how Wistron manages to minimize the violent assault that caused the property, Gears, and iPhones to lose millions of dollars. Pegatron is also expanding production in Vietnam, India, apart from Wistron, Apple’s other Foxconn suppliers.