Apple has been hitting headlines in India recently but not for good reasons. Employees seeking unpaid wages recently attacked the Wistron provider’s facility near Bengaluru, India. Now, as Reuters says the company has taken over Wistron.
According to the report, an early investigation by Apple reveals that Wistron has breached the “Supplier Code of Conduct”. Apparently, he was not managing working hours properly and this led to delays in pay. In fact, as Wistron admits it did not pay some employees in October and November on time. If you don’t know, Wistron collects Apple iPhones like iPhone 7 and iPhone SE 2020.
The report states that Wistron planned to expand operations by hiring 20,000 employees a year. However, unable to deal with the size of a manpower, he broke several laws that caused the riot. Also, the results of the study by Karnataka Govt state that Wistron had 5,500 employees more than the allowed number.
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Some of the other breaches include inappropriate HR management, low pay for contract workers, housekeepers. The company has also forced female employees to do extra work without proper permission.
As a result, the report states that Wistron will experience a delay in production as a result of Apple ‘s verification process. This brings teeth over its ₹ 13 billion ($ 177 million) pledge earlier for the next five years to accelerate the PLI scheme. If you recall, the Indian Govt agreed cash incentives of 4-6% of Sales of locally made goods in the next 5 years from 2019-2020.
That said, Apple says it will continue to monitor how Wistron manages to mitigate the violent attack that has led to the loss of millions of dollars of assets, Gears, and iPhones. In addition to Wistron, Apple Foxconn’s other suppliers, Pegatron is also expanding production in Vietnam, India.
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