Apple Supplier Wistron to Restart Violence-Hit Karnataka Plant, Still on Probation

Contract workers angry over unpaid wages destroyed property, gear, and iPhones on December 12, 2020, causing millions of dollars in losses to Wistron.

By Gadgets 360 Staff With Input From Reuters | Updated: 9 February 2021 13:15 IST

Apple Supplier Wistron to Restart Violence-Hit Karnataka Plant, Still on Probation

Apple put Wistron on probation after its audit of plant found violations of 'Supplier Code of Conduct'

Highlights

Wistron did not give a timeline for the re-opening of the plant
Contract workers were angry over unpaid wages
Wistron said it had paid all its workers and brought in new hiring

Apple on Tuesday said supplier Wistron Corp will restart operations at its factory in southern India after violence at the site led to its shutdown late last year, though the Taiwanese company would remain on probation. Cupertino, California-based Apple, which uses Wistron to assemble its second-generation iPhone SE, said its staff and independent auditors had been working for the past eight weeks to ensure all systems and processes were in place at the factory in the Narasapura industrial area of Karnataka state.

"As Wistron begins the process of hiring team members and restarting their operations, everyone at the facility will undergo a new training program to ensure they understand their rights and how they can raise any concerns," Apple said, adding it would continue to track progress at the factory.

The factory was shut after contract workers angry over unpaid wages destroyed property, equipment and iPhones on December 12, causing millions of dollars worth of damage. An Apple audit found violations of its 'Supplier Code of Conduct' at the plant.

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Separately, Wistron said it was working hard to raise standards and fix issues at the factory. It said it had paid all workers and introduced new hiring and payroll systems.

"We are looking forward to restarting our operations and welcoming back team members," Wistron said, without giving a timeline. Neither Apple nor Wistron said when iPhone production would resume at the plant, but three government officials, who declined to be named as they are not authorised to speak to the media, told Reuters operations could begin as early as next week.

Wistron would gradually ramp up production at the factory over the next few weeks, two of the sources said. Apple began the assembly of its first iPhone model in India via Wistron in 2017. It has since expanded manufacturing with Foxconn in southern India while another top supplier Pegatron is set to begin local operations.

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On Tuesday, Wistron said it had paid all its workers and brought in new hiring and payroll systems.

"We will be delivering enhanced training programs for all workers, and have put in a place a new system for workers to get information and raise any concerns they may have, anonymously," it added.

Here is the entire statement Apple provided Gadgets 360 on the development:

For the past eight weeks, teams across Apple, along with independent auditors, have been working with Wistron to make sure the necessary systems and processes are in place at their Narasapura facility. A comprehensive set of corrective actions has now been completed and Wistron has restructured their recruiting team and enhanced training and support for workers.
As Wistron begins the process of hiring team members and restarting their operations, everyone at the facility will undergo a new training program to ensure they understand their rights and how they can raise any concerns. Apple employees and independent auditors will remain on site to validate that the new processes are effective.
We are dedicated to ensuring that workers are protected and treated with dignity and respect. Wistron remains on probation and we will monitor their progress closely.

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