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Karnataka govt might fine, blacklist Wistron staffing firms: Report

Violence broke out at the factory near Bengaluru on December 12, disrupting production after workers expressed unhappiness over alleged non-payment of salary and overtime wages.

December 18, 2020 / 09:02 AM IST
Policemen stand guard outside a facility run by Wistron Corp, a Taiwanese contract manufacturer for Apple, in Narsapura near  Bengaluru, India, December 14, 2020. (Image: Reuters)

Policemen stand guard outside a facility run by Wistron Corp, a Taiwanese contract manufacturer for Apple, in Narsapura near Bengaluru, India, December 14, 2020. (Image: Reuters)


After the incident at Wistron's iPhone manufacturing plant, the Karnataka government might fine and blacklist six staffing firms over non-payment of wages to workers, according to a report by Mint. 


Violence broke out at the factory in Kolar district near Bengaluru on December 12, disrupting production after workers expressed unhappiness over alleged non-payment of salary and overtime wages.


While Taiwan-based Wistron had initially pegged damages at Rs 437 crore in the FIR, media reports suggest it later revised it to around Rs 50 crore or less.


Also Read: Wistron workers' violence can lead to learning wrong lessons


"It was a sudden outburst," one of the two government officials told Mint. "There are around 8,500 temporary workers at the Karnataka factory. The manpower was supplied by five-six staffing firms, and it was their fault to exploit the workers by not paying or defaulting on salary payments."

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The Karnataka government has been making efforts to help the Apple contract manufacture resume normal operations at the facility.


"The Union labour ministry is in touch with the state government and is monitoring the situation. The manpower suppliers seem to be at fault. We are evaluating the situation, and appropriate action will be taken," said DPS Negi, chief labour commissioner (central) and senior labour and employment adviser at the ministry told Mint. 

Karnataka Chief Minister BS Yediyurappa on December 17 said Prime Minister Narendra Modi is "very much worried"about the incident at the Wistron plant.

Moneycontrol News
first published: Dec 18, 2020 09:02 am

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