Apple says its main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly
Contract employees at Wistron’s Kolar plant have alleged non-payment of salaries, unexplained wage cuts and increased working hours as reasons behind the 12 December riot
BENGALURU: Apple Inc. on Saturday said that it has found evidence of violations against its contract manufacturer Wistron in India and has put the latter on probation.
Apple had launched an investigation into the incident of violence at Wistron’s Kolar plant in Karnataka on 12 December, after unpaid contract employees went on a rampage, destroying property and large-scale loot of iPhones and other valuables causing over ₹50 crore in losses.
"We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions," Apple said in a statement.
Contract employees at Wistron’s Kolar plant have alleged non-payment of salaries, unexplained wage cuts and increased working hours as the reason for their anger which boiled over and turned violent.
"While these investigations are ongoing, our preliminary findings indicate violations of our Supplier Code of Conduct by failing to implement proper working hour management processes. This led to payment delays for some workers in October and November," Apple added.
Apple also said its employees along with independent auditors, will monitor their progress. Wistron manufactures iPhone SE and other iPhones for Apple in India.
"Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly," the company said.
On Saturday, Wistron fired its vice president of India operations and acknowledged mistakes in its expansion plans. Multiple reports commissioned by the Karnataka government have found Wistron was violating several provisions and the role of six staffing firms that supplied contract workers to the Taiwanese manufacturer is being probed further.
These staffing firms are alleged to have siphoned off a large chunk of workers' salaries and other payments.
Apple had said that it will launch an investigation to check if any of its supplier code of conduct policy was violated by Wistron.
"As always, our focus is on making sure everyone in our supply chain is protected and treated with dignity and respect. We are very disappointed and taking immediate steps to address these issues," Wistron said.