Wistron found to be committing violations of labor laws in Indian iPhone assembly plant
A report from the Karnataka state authorities found that Wistron's Narasapura production plant in India exploited its workers, noting wage underpayment, poor working conditions, and irregular hours.
After a protest at the Wistron plant turned violent, Karnataka's Department of Factories, Boilers, Industrial Safety and Health deemed that the major iPhone assembler had been exploiting its workers.
The primary investigation also uncovered that Wistron's Human Resources department had poor knowledge of labor regulations designed to keep workers safe, according to the South China Morning Post.
Investigations found that the factory did not have enough staff to manage the 10,500 workers, of which 8,500 were contracted and not full-time employees. A senior official in the labor department noted that Wistron should have been more proactive in enforcing sound labor practices.
Wistron's managing director Sudipto Gupta said that the company would work with state authorities to prevent a reoccurrence of the incident.
Hundreds of workers had been arrested or detained by the police after the incident, with Wistron claiming that the riot resulted in up to $7 million in damages.
The primary cause of the riots were ongoing and widespread salary disputes. 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.)
AICCTU, a prominent Indian trade union, spoke out against the Indian government for its lack of action against iPhone assembly partner Wistron shortly after the riots.
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.
After a protest at the Wistron plant turned violent, Karnataka's Department of Factories, Boilers, Industrial Safety and Health deemed that the major iPhone assembler had been exploiting its workers.
The primary investigation also uncovered that Wistron's Human Resources department had poor knowledge of labor regulations designed to keep workers safe, according to the South China Morning Post.
Investigations found that the factory did not have enough staff to manage the 10,500 workers, of which 8,500 were contracted and not full-time employees. A senior official in the labor department noted that Wistron should have been more proactive in enforcing sound labor practices.
Wistron's managing director Sudipto Gupta said that the company would work with state authorities to prevent a reoccurrence of the incident.
Hundreds of workers had been arrested or detained by the police after the incident, with Wistron claiming that the riot resulted in up to $7 million in damages.
The primary cause of the riots were ongoing and widespread salary disputes. 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.)
AICCTU, a prominent Indian trade union, spoke out against the Indian government for its lack of action against iPhone assembly partner Wistron shortly after the riots.
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
Unless Wistron was cooking numbers that Apple reviewed. But I would think the would have a large team of inspectors to independently and directly verify compliance with their contract standards.
Apple didn't go into India because they wanted to. They went there (with one of their suppliers) due to extortion by the Indian government. They likely knew that their hands were tied and their options limited.
Slave labor is used according to American living standard. In many countries it is not slave labor. You are ignorant of Apple business. Foxconn, Wistron, Pegatron are not owned by Apple. They are contracting companies. They also build products for many other companies. Can you elaborate what Apple did to them to enhance margins?
it is not uncommon for the contract company take a share of the workers’s wage, as long as the workers know beforehand. And it seems it is rather common in India.
https://www.apple.com/supplier-responsibility/pdf/Apple-Supplier-Responsible-Standards.pdf
You don't think Walmart doesn't send representatives to China to check on factory conditions? (COVID not withstanding). Which are often sub-contracted factories to the "supplier" to Walmart? With 100% certainty I can tell you they do.
Apple and other large manufacturers have HUGE targets on their backs, both legal and moral/ethical/PR in substance. You don't think they and/or representative agents audit and inspect?
https://www.apple.com/supplier-responsibility/
Progress by the numbers.
Apple moved to China many years ago because a lot of PC manufacturers are making Wintel machines there and thus able to sell PCs at bargain prices. I think you are too young to see this history.
America screwed itself. Because the people demand higher pay. They used strikes to force companies to increase wages. But in the 1970s Japan is making cheaper cars that many consumers chose. President Reagan broke the union by encouraging free trade allowing US companies relocating plants overseas. China took advantage of this trend. Blaming others for one's own fault and denying one's fault is really typical of democracy. Because in democracy people is always right thus cannot admit responsibility.