Published 16:30 IST, December 19th 2020
Apple issues statement on violence at Karnataka iPhone plant, Wistron placed on probation
Tech giant Apple expressed disappointment over the Taiwan-based manufacturer's actions placing it on probation until they 'complete corrective actions.'
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Reacting to the recent violence at the Wistron iPhone manufacturing plant in Karnataka, Apple Inc issued a statement on Saturday saying that it was working around the clock to investigate the matter. Placing significance on the dignity and respect of its workers and acknowledging that there were delays in payment, Apple announced that manufacturer Wistron had set up an employee assistance program and a 24-hour grievance to address further grievances. The tech giant, however, expressed disappointment over the Taiwan-based manufacturer's actions placing it on probation until they 'complete corrective actions.'
Apple's full statement
"Apple employees and independent auditors hired by Apple have been working around the clock to investigate the issues which occurred at Wistron’s Narasapura facility. While these investigations are ongoing, our preliminary findings indicate violations of our 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.
As always, our focus is on making sure everyone in our supply chain is protected and treated with dignity and respect. 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.
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.”
Wistron admits to lapses in payment
Meanwhile, Wistron has issued a statement over the incident, admitting that workers at the plant were 'not paid correctly or on time.' "Safety & wellbeing of our team members is always our top priority & core value at Wistron. Since unfortunate events at our Narasapura facility we've found that some workers were not paid correctly, or on time. We deeply regret & apologize to all of our workers," said Wistron in its statement.
Additionally, the Taiwanese company has also sacked the Vice President who oversees business in India. "We are removing the Vice President who oversees our business in India. We are also enhancing our processes and restructuring our teams to ensure these issues cannot happen again. Our top priority is to ensure all workers are fully compensated immediately & we're working hard to achieve that. We've established an employee assistance program for workers at the facility. We're working diligently on corrective actions to ensure it doesn't happen again," it said.
As opposed to the Rs 437 crore damages estimated earlier, Wistron, on Wednesday said that the damage in its factory unit in Kolar's Narasapura amounted to between Rs 26 crore to Rs 52 crore.
16:30 IST, December 19th 2020