Indian trade union accuses government of targeting Wistron employees involved in violent p...

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A prominent Indian trade union has spoken out against the Indian government for its lack of action against iPhone assembly partner Wistron after a violent riot broke out following a protest.

Indian


On December 12, nearly all 2,000 employees at Wistron's Narasapura production plant took part in a violent riot against the company. Acts included damaging furniture and assembly units, smashing glass windows of executive offices, and setting fire to vehicles at the location.

According to Reuters, hundreds of the workers have been arrested or detained by police. India's Karnataka government went on record to condemn the violence, vowing to take the "strictest action" against the wrongdoers.

All India Central Council of Trade Unions, a major Indian trade union, spoke out against the state government at a press briefing.

"The state government is going extremely soft on the company and turning a blind eye to all the violations at the facility," said AICCTU's national secretary, Clifton D'Rozario. "They are generating employment that is not paying people - What purpose does such employment serve?"

Workers alleged an engineering graduate was promised Rs 21,000 ($285) per month but instead had received Rs 16,000 ($217) at first, which then reduced down to Rs 12,000 ($163) in the last three months. Non-engineers allegedly had salaries cut to 8,000 ($108), and some claimed to have been paid as little as Rs 500 ($6.78.)

Apple was forced to halt production and announced that it would launch a probe into whether the supplier broke its guidelines for the iPhone assembler.

The Narasapura plant had reportedly been hiring large numbers of workers, with initial efforts from August aiming to hire 2,000 workers with a final goal of generating 10,000 jobs.

Apple continues to expand its production capacity in India, in part to help with sales in the region, but also to potentially diversify its overall manufacturing operation from a China-centric strategy.

Wistron, as well as fellow Apple assembly partners Foxconn and Pegatron, applied to India's $6.6 billion Production-Linked Incentive Scheme, which aims to build up manufacturing in India by attracting smartphone and mobile device producers.

Comments

  • Reply 1 of 12
    Makes me wonder, if the alleged pay reduction is true, does it have anything to do with the caste system that’s still prevalent in India? Possibly just their higher caste employees in management just took it upon themselves to pay the lower caste employees less than what they were supposed to get paid. Just one of many possibilities...
  • Reply 2 of 12
    maestro64maestro64 Posts: 5,043member
    There is way more to this story than being told.

    Most people in India will leave a job for a better sounding title and $0.05 more an hour in pay. Of course the government is not going to stand behind the workers, Apple and other companies had to pay the government just to allow them to sell their product in India. The workers should be just happen they have an opportunity to work. <sarcasm> for those who do not get it.
  • Reply 3 of 12
    If Wistron just stay in China, none of these will happen. CCP will just shot the rioters on the spot.  
  • Reply 4 of 12
    Makes me wonder, if the alleged pay reduction is true, does it have anything to do with the caste system that’s still prevalent in India? Possibly just their higher caste employees in management just took it upon themselves to pay the lower caste employees less than what they were supposed to get paid. Just one of many possibilities...
    Oh, we have a budding social philosopher/cultural anthropologist in our midst... sheesh...
  • Reply 5 of 12
    I'd wager that some of the communist political parties are involved (there are many variations of the CP in India's politics): most militant trade unions in India are an extension these political factions.
  • Reply 6 of 12
    tzeshantzeshan Posts: 2,351member
    Does the plant resume production? China-based Xiaomi has plants in India. I have not seen news reporting about similar things. According to CIA World Fact web site, Indian GDP in 2017 is already $7200/per capita. This is much higher the alleged worker pay in the plant. 
  • Reply 7 of 12
    wood1208wood1208 Posts: 2,899member
    This kind of riots doesn't help India's dream to become manufacturing hub like China. If Government don't target trouble makers(local opposite political interests who start chaos) than Winstron or others will leave India and those planning to enter India for manufacturing will go somewhere like Vietnam. At the end, everyone who makes living working in such manufacturing plants will loose out.

  • Reply 8 of 12
    This is one of those scenarios that will give India the knowledge and understanding for how to manage people and what are also likely external threats and influence to their manufacturing aspirations. They are fortunate however that the likes of Apple are unlikely to pull manufacturing out of the country.
  • Reply 9 of 12
    wood1208 said:
    This kind of riots doesn't help India's dream to become manufacturing hub like China. If Government don't target trouble makers(local opposite political interests who start chaos) than Winstron or others will leave India and those planning to enter India for manufacturing will go somewhere like Vietnam. At the end, everyone who makes living working in such manufacturing plants will loose out.


    You're absolutely right. Vietnam seems to be a great place for Indian manufacturing. Even some ex-chinese based manufactures moved to Vietnam during US-China trade war.
  • Reply 10 of 12
    wood1208 said:
    This kind of riots doesn't help India's dream to become manufacturing hub like China. If Government don't target trouble makers(local opposite political interests who start chaos) than Winstron or others will leave India and those planning to enter India for manufacturing will go somewhere like Vietnam. At the end, everyone who makes living working in such manufacturing plants will loose out.

    What do you propose sir? India should turn a blindside to some companies treating its citizens like slaves - just to realise some utopian 'India's dream'?  When the reasons for why workers rioted are clear, you dare to blame 'opposite political interests'? Don't we have any humanity left in some people?
  • Reply 11 of 12
    I'd wager that some of the communist political parties are involved (there are many variations of the CP in India's politics): most militant trade unions in India are an extension these political factions.
    Sure! Blame the communist parties, blame militant trade unions, blame the works who were being exploited.... blame everyone except a company (Wistron in this case) that doesn't know that the rules of operation in a democratic country tend to be different from an autocratic communist regime! 
    muthuk_vanalingam
  • Reply 12 of 12
    This is one of those scenarios that will give India the knowledge and understanding for how to manage people and what are also likely external threats and influence to their manufacturing aspirations. They are fortunate however that the likes of Apple are unlikely to pull manufacturing out of the country.
    I have been an Apple fan since before iPods were introduced... but let's not elevate Apple to some benevolent god blessing a country with its riches by the very presence of its manufacturing operations through a partner (Wistron).

    There are many companies such as Google, Microsoft, Amazon... even Apple (maps division) operating in India for quite some time and they are doing well because they know how to treat workers with respect and compensate them properly. The only lesson India has to learn is that the government needs to enforce labor rules even after they lay a red carpet to welcome foreign investments.
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