Apple’s supply chain problems add to India and China with Wistron and Pegatron on bail

The Silicon Valley technology firm launched an investigation after local media in India reported that workers vandalized an iPhone factory near Bangalore run by Taiwanese manufacturer Wistron. A local Labor minister and a trade union organization told CNN Business last week that workers there claimed they were not being paid.
apple (AAPL) said in a statement to CNN Business that an independent audit conducted as a result of the violence showed that the payment of some workers was delayed in October and November.

“Our main goal is to ensure that all employees are treated with dignity and respect and are fully compensated quickly,” Apple said, adding that it has stopped placing new orders with Wistron as a result of its findings. “We are very disappointed and are taking immediate action to address these issues.”

Wistron did not respond to several requests Monday from CNN Business for comment. However, the company has released an executive in charge of its business in India, according to Taiwanese media reports.

“We have eliminated the vice president who oversees our business in India,” Wistron said in a statement, according to the Taiwan Times. “This is a new facility and we recognize that we made mistakes as we expanded.”
Apple has had to fight serious labor concerns in Asia in recent weeks. Last month, he released another major provider, Pegatron, for violating his labor code by having student workers in China overnight and overtime.

Apple then said Pegatron had fired an executive in the face of the violations. Pegatron also said he had worked to increase oversight after uncovering the violations, even by arranging an external audit.

However, the allegations against Pegatron have not disappeared. Last week, hundreds of workers protested at the Pegatron facility in Shanghai and the eastern Chinese city of Kunshan because they said they were owed bonuses and wages, according to the human rights group China Labor Watch.

The organization estimates that up to 500 temporary workers, hired by local recruiting agencies in collaboration with Pegatron, gathered at the company’s Shanghai factory to protest Saturday and chanted, “Pay the workers, shop!”

Agencies had promised workers special bonuses if they worked 55 days, but failed to meet them after finishing their jobs, according to China Labor Watch.

Pegatron declined to comment Monday.

Apple suspends new business with iPhone provider that used students on night shifts

Meanwhile, riots at the Wistron factory in India hit headlines around the world after images appeared on social media that appeared to show people breaking glass panels and tearing down CCTV cameras. In a statement to the Taiwan Stock Exchange last Tuesday, Wistron estimated that the violence had caused damage of up to $ 7 million.

In its statement on Monday, Apple noted that Wistron had taken disciplinary action and was in the process of “restructuring its recruitment and payroll teams” in Narasapura, India. region where the factory is located.

The firm has also established a hotline so that facility workers can call anonymously in case of any questions, he said.

Apple has long been criticized for how it treats workers in its supply chain. To improve internships, the American company regularly conducts audits, including surprise visits, of its suppliers ’facilities around the world.

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