Apple puts Wistron on probation, no new business till corrective actions are taken

Thousands of workers at Wistron factory showed anger after unexplained wage cuts, defaulting and delaying of wages and increased working hours.

Apple on 19 December said that it has found evidence of violations against its contract manufacturer Wistron in India and has put the latter on probation. Apple had launched an investigation into the incident of violence at Wistron’s Kolar plant in Karnataka on 12 December, after unpaid contract employees went on a rampage over, destroying property and large-scale loot of iPhones and other valuables causing over Rs 50 crores in losses.

"We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions," Apple said in a statement.

Apple logo

Apple logo

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," Apple added.

"Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly," the company said.

This is the second major supplier that Apple has put under probation. In November, Apple put one of its biggest supply chain partners Pegatron on probation and said it will not receive any new contracts from the company after Apple found it to be faking paperwork to cover up violations of Apple’s code of conduct for suppliers.

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