Apple puts Wistron on probation, suspends new business opportunities

Technology giant Apple has said that it will not provide new business contracts to Wistron globally until the Taiwanese manufacturer completes all corrective actions at its Narasapura facility, around 60 kms from Bengaluru. 

Wistron on Saturday admitted to certain lapses in payments to workers at the facility in Kolar district and said that it is removing its vice president Vincent Lee, who oversees its business in India. While apologising to all the employees it has assured that all of them will be compensated immediately.  

“We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective action,” said Apple in a statement. “Apple employees, along with independent auditors, will monitor their progress. Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly,” it added. Wistron has manufacturing lines for Apple products in China, too.

 

The Cupertino-headquartered company had launched an investigation into the incident last week in which thousands of people, including employees, had vandalised the Wistron campus in Karnataka which manufactures iPhones apart from other IoT products over wage issues. Wistron is one of the largest suppliers of iPhones in the world and manufactures iPhone 7 and the new iPhone SE models in India. 

Expressing disappointment, Apple said that its focus is on making sure everyone in the supply chain is protected and treated with dignity and respect. 

“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,” added Apple.