Amid the controversy over the riot for unpaid wages in Wistron plant near Bengaluru earlier this month, Apple has decided to suspend any new orders to Wistron putting it on probation, reported an Indian Express report on Monday.
Due to lapses in labour practices, several Wistron workers led to riots at a plant in Narasapura near Bengaluru. Wistron failed to implement a proper working hour management process which led to delays in payments to workers, causing them to put up a protest in October and November, Apple said in a statement on Saturday.
“Wistron has taken disciplinary action and is restructuring their recruitment and payroll teams in Narasapura,” Apple said. “We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions. Apple employees, along with independent auditors, will monitor their progress,” the statement added.
Things got even more out of hand earlier this month, with many workers resorting to violence and vandalism by damaging property and looting thousands of iphones and laptops over issues of unpaid wages.
A Taiwanese company, Wistron is one of the first Apple suppliers to produce iPhones in the country and has been facing concerns over inadequate management team and human resources department.
"This is a new facility and we recognize that we made mistakes as we expanded,” Wistron said in a statement on Saturday adding that it removed the vice president who was overseeing operations in India. “We are deeply committed to our business and employees in India. We are working diligently on corrective actions to ensure this does not happen again,” the statement adeed.
Apple and its suppliers have been facing criticism in the past for allowing poor labour conditions especially in China.
