Updated: December 21, 2020 10:28:34 am
Like Apple’s other contract manufacturers, Wistron is also involved in the production of its flagship iPhones. The Narasapura factory is the new unit from where the assembly of the iPhone SE (2020) had begun. (Image Source: Bloomberg)
Global software and hardware conglomerate Apple took strict action on Saturday against one of its suppliers, Wistron, recognizing that the latter had violated the supplier’s code of conduct by “failing to implement adequate processes for managing working hours.” Apple’s statement was preceded by another statement from its supplier Wistron, which also acknowledged the lapses on its behalf at its Narasapura facility in Bengaluru.
What happened at the Wistron facility in Narasapura?
On December 12, temporary workers employed at Wistron’s Narasapura facility in Bengaluru launched slogans and vandalized vehicles parked inside the factory premises. These workers protested against the non-payment of overtime and regular hours by the company.
Workers started throwing stones and damaged some vehicles inside the factory. Some iPhones, which had been manufactured at the factory and kept for export, were also looted by workers, according to reports.
While state government authorities arrested some of the workers involved in the protests, Wistron in its initial statement said that it had followed all laws and was supporting authorities in its investigation, Apple said that it had “immediately initiated a detailed investigation at Wistron’s Narasapura facility in India. “
Like Apple’s other contract manufacturers, Wistron is also involved in the production of its flagship iPhones. The Narasapura factory is the new unit from where the assembly of the iPhone SE (2020) had begun. The original iPhone SE was the first iPhone made in India and now four models are in production here, including the iPhone 11.
The plant is spread over 43 acres and was built with an investment of Rs 3,000 crore. It is a new unit, which was inaugurated in July of this year. The other unit in Bengaluru is located in the town of Peenya, on the outskirts of the city, from where Wistron has been producing iPhone SE models since 2017.
The Narasapura unit employs about 2,000 regular employees and about 7,000 contract employees, while the old Peenya unit employs about 3,500 people permanently. The flagship iPhones produced at the Narasapura and Peenya unit are also exported to other countries around the world.
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What is the status now?
A week later, after the initial investigations on the subject have been carried out, both Wistron and Apple have recognized the “lapses” in the hours of pay and work. Even the state government agreed that contract workers at the plant had not been paid overtime and regular hours for the past three to four months.
In its statement Saturday, Wistron said that during its investigations it had found that some workers were not paid correctly, or on time. The company also said it had fired its vice president who oversaw the business in India. The mistakes made, Wistron said in his statement, were as they expanded.
“Some of the processes we put in place to manage labor agencies and payments need to be strengthened and updated. We are taking immediate action to correct this, including disciplinary action, ”Wistron said.
On the other hand, Apple, for whom Wistron makes iPhones and other devices in its Narasapura unit, said they had put “Wistron on probation and will not receive any new business from Apple before completing the corrective actions.”
Is Apple’s reaction to labor issues different in India compared to China?
Outside of the US, China has so far been one of the biggest workplaces for Apple. Three of its main suppliers, Pegatron, Foxconn, and Wistron, have huge factories dedicated solely to the manufacture and assembly of iPhones, iPads, iWacthes, and a range of other Apple products. All of these vendors employ thousands of people on the assembly and production lines of Apple products.
As early as 2010, there have been reports of serious labor law violations against Apple vendors and vendors, including Foxconn, Pegatron, and Wistron. In 2011, an explosion at Foxconn’s Chengdu unit had left 4 workers dead and another 18 injured. In the same year, another explosion at one of the units of Pegatron, another Apple supplier, left 59 workers injured, Chinese media reported.
China Labor Watch, an independent nonprofit organization, which since 2010 has monitored the labor laws of Apple and its suppliers, and the alleged violations has repeatedly raised questions about working conditions within these companies’ factories.
As early as 2013, the agency had outlined the working conditions at Pegatron, one of Apple’s main suppliers. In his report he had said that working hours at Pegatron were “working long overtime hours to produce a reduced and less expensive version of the iPhone.”
“Six days a week, the workers who make these phones have to work shifts of almost 11 hours, 20 minutes of which are unpaid and the rest are paid at the rate of $ 1.50 per hour ($ 268 per month ) before overtime. This is less than half the average local monthly income of $ 764 and well below the basic living wage needed to live in Shanghai, one of the most expensive cities in China, ”the agency said in its report.
Six years later, China Labor Watch filed another report alleging that while Foxconn violated labor laws at its factories, Apple did nothing to stop it.
“Apple has done very little to improve the rights of workers in its suppliers’ factories. Apple claimed that they care about all workers on the production line, but in fact, workers receive wages close to or equivalent to the local minimum wage. It is difficult for workers to earn a living on the minimum wage, ”China Labor Watch said in its latest report.
Although Apple denied all the allegations, it accepted that the company “exceeded the number of contract workers allowed by Chinese law.” Earlier this year in November, Apple also suspended “business operations” with Pegatron after discovering that the company violated Apple’s supplier code of conduct by violating the student worker program.
© The Indian Express (P) Ltd
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