Days after workers went on a rampage at the Wistron Corp plant in Narasapura over alleged delays in wages, the Taiwan-based manufacturer has removed its vice-president who oversees the business in India. Apple, one of the companies the plant in Kolar used to manufacture for, has said Wistron will not receive any new business from Apple before they complete corrective action.
“Since the unfortunate events at our Narasapura facility we have been investigating and have found that some workers were not paid correctly, or on time. We deeply regret this and apologize to all of our workers,” said a statement from Wistron on Saturday.
In the statement Wistron acknowledged that it had made mistakes as it expanded in then new facility. “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 statement said. It added: “We are also enhancing our processes and restructuring our teams to ensure these issues cannot happen again.”
Meanwhile, an Apple statement said its “preliminary findings indicate violations of our Supplier Code of Conduct”. Apple employees and independent auditors hired by the company have been working around the clock to investigate the issues which occurred at Wistron’s Narasapura facility, the statement said. “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,” it added.
Wistron said its “top priority” was to ensure all workers are “fully compensated immediately and we are working hard to achieve that”. Apple said its focus was on making sure everyone in our supply chain is protected and treated with dignity and respect.
The Apple statement said it has “placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions”. The statement added that Apple employees, along with independent auditors, will monitor their progress.
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