Apple has put Taiwanese contractor Wistron Corp on probation while it investigates the issues which occurred at the supplier’s Narasapura facility. The iPhone-maker, in its statement, said that it has hired independent auditors, who along with Apple employees, are working around the clock to investigate the issue.
Apple found Wistron flouting the company’s 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.
“We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions. Apple employees, along with independent auditors, will monitor their progress. Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly,” Apple said.
"We are very disappointed and taking immediate steps to address these issues. Wistron has taken disciplinary action and is restructuring their recruitment and payroll teams in Narasapura. They have also set up an employee assistance program and a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi, and English to ensure all workers at the facility can voice any concerns, anonymously," the statement further read.
Wistron, meanwhile, will not receive new business till corrective measures are implemented.
In a statement issued on December 19 the company said team members’ “safety and well wellbeing is always top priority.” The iPhone supplier said it is removing vice president Vincent Lee who oversees its India activities.
“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," Wistron said in its statement.
Also check: Violence at Apple iPhone plant in Karnataka: All you need to know
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.