Team News Riveting
Apple supplier Wistron on Saturday admitted that payment flaws had led to violence in the manufacturing facility at Narasapura near Bengaluru and said the company is restructuring its teams to ensure such incidents do not repeat.
On December 12, thousands of workers at Wistron’s factory in Narasapura resorted to violence and damaged the company’s property worth over Rs 50 crore. They protested against the delay in payment of wages as well as salaries less than what they had been assured by the HR firms that had supplied workers to the company.
As an immediate disciplinary action, the company has removed a senior official designated Vice President who oversees the business in India. “We are also enhancing our processes and restructuring our teams to ensure these issues cannot happen again,” Wistron added in the statement.
“This is a new facility and we recognise that we made mistakes as we expanded. Some of the processes we put in place to manage labour agencies and payments need to be strengthened and upgraded. We are taking immediate action to correct this, including disciplinary action,” the Taiwan-headquartered company said, adding that We deeply regret this and apologize to all of our workers.”
Meanwhile, Apple Inc on Saturday said it had placed contract manufacturer Wistron on probation and would not give new business to the Taiwanese firm until it took corrective actions following lapses at its southern India plant.
Early findings of an Apple audit show violations of the U.S. tech giant’s ‘Supplier Code of Conduct’, Apple said in a statement. Wistron failed to implement proper working hour management processes, which “led to payment delays for some workers in October and November,” it said.
