Apple Puts Supplier Wistron Corp On Probation After Labor Law Violations In India

Apple Inc AAPL has officially put a supplier in India, Wistron Corp., on probation. 

What Happened: The tech giant said in a statement on Saturday that it would not continue working with the factory unless it addresses issues raised by a government inspection, Reuters has reported. Apple is putting new orders on old for the time being.

Workers protested and destroyed property on Dec. 12, causing millions of dollars in damage, which led to an investigation by the Karnataka state factories department.

“Though 10,500 workers are employed in the factory, the HR department has not been adequately set up with personnel of sound knowledge of labour laws,” concluded the report on Dec. 13.

Apple said it started its own internal investigation following the report but did not reveal its results.

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

Why It Matters: Wistron Corp., based in Taiwan, is accused of violating labor force laws by introducing 12-hour shifts and employing around 10,500 workers when the maximum capacity at the factory is 5,000. It also is accused of failing to pay consistently in full, angering workers and creating an unhealthy working environment.

“This is a new facility and we recognize that we made mistakes as we expanded. Some of the processes we put in place to manage labor agencies and payments need to be strengthened and upgraded,” the company said.

Wistron said it would make adjustments and introduce 24-hour hotlines for employees for anonymous complaints, according to Reuters.

Apple’s decision may postpone iPhone production and the company’s manufacturing efforts in India.