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Home / Companies / News /  Apple puts Wistron on probation, says no new business after India plant violence

NEW DELHI : Apple said on Saturday it had placed contract manufacturer Wistron on probation and would not give the Taiwanese firm new business until it took corrective actions following lapses at its southern India plant.

Early findings of an Apple audit, which followed violence at the Wistron plant in southern Karnataka state last weekend, show violations of the U.S. tech giant's 'Supplier Code of Conduct', Apple said in a statement.

Our preliminary findings indicate violations of our Supplier Code of Conduct by failing to implement proper working hour management processes. We have placed Wistron on probation & they'll not receive any new business from Apple before they complete corrective actions, Apple said in a statement.

"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 noted.

In a statement earlier on Saturday, Wistron admitted some workers at its southern Indian plant had not been paid properly and said it was removing a top executive overseeing India business, Apple said in a statement.

Apple employees and independent auditors hired by Apple have been working around the clock to investigate issues which occurred at Wistron’s Narasapura facility.

"Apple is dedicated to ensuring everyone in our supply chain is treated with dignity and respect. We have teams on the ground and immediately launched a detailed investigation at Wistron's Narasapura facility in India. We are also dispatching additional Apple team members and auditors to the facility," Apple said in an statement.

Its teams are in close touch with the local authorities and it is offering full support to their investigation, it added.

The Cupertino-based company has a strict supplier code of conduct and follows up on any reports of violations.

In 2019, it interviewed more than 52,000 supplier employees as part of its supplier assessments.

Apple, in its supplier code of conduct, states that suppliers must meet all legal requirements relating to wages and benefits, including paying accurate wages in a timely manner.

In November, Apple had suspended new business with one of its suppliers Pegatron Corp after labour violations were reported.

Besides the iPhone, Wistron also manufactures IT products for Lenovo and Microsoft, among others.

*With inputs from agencies

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