Wistron, the supply partner of Apple that recently came under scrutiny for a riot at its manufacturing facility in Karnataka, has announced that it is removing its Vice President, who oversees the company’s business in India. This decision was undertaken after the Cupertino based tech giant decided to put the company on probation for breaking its supplier code.
Apple carries the privilege of being one of the most valuable tech companies in the world, but as the popular saying goes, “With great power, comes great responsibility.” This is why when violence erupted at one of the manufacturing units of its supply partner Wistron over alleged labor law violations, the company was pushed to take swift action. Now, it looks like the company has finally delivered, as it has decided to put Wistron on probation until it takes “complete corrective actions.”
Apple forms alliances with other companies, who then manufacture products like iPhones for it. However, since the employees at these facilities are indirectly working for Apple, the tech giant has set supplier guidelines in place, to make sure that no one working on an Apple product is harassed.
Wistron, the Taiwanese manufacturing company is one of the top Apple phone manufacturers. The company manufactures iPhone 7 and older SE versions in India. However, it looks like the manufacturer was not following the guidelines set by Apple in its facility in Narasapura, and had failed to implement proper working hour management processes. Moreover, this led to payment delays, as thousands of workers did not receive their pay.
This led to riots at the facility, in which two battery-powered buggies were set on fire, six vehicles were damaged and glass windows and doors were smashed. Even though there were no casualties, a few security guards and floor managers were manhandled.
The issue became international news, pushing Apple to take strict action against the company.
“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 has taken disciplinary action and is restructuring their recruitment and payroll teams in Narasapura,” Apple said in the statement. “Apple employees, along with independent auditors, will monitor their progress.
Wistron has admitted that some of the workers at the plant were not paid correctly, and that it is removing a top executive who oversaw the company’s India business. Moreover, it is starting an employee assistance program for workers at the facility, as well as setting up a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi and English.