Bengaluru (Karnataka) [India], December 19 (ANI): Apple Inc on Saturday said that it has placed on "probation" its supplier Wistron and will not award the Taiwanese manufacturer of its phone sets any new business until it takes complete corrective actions and ensured all employees at its plant in Narasapura in Karnataka were treated with dignity and respect.
"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," Apple Inc said in a statement.
On December 12, violence erupted at Wistron Pvt Ltd, in Kolar. Later, an FIR was registered against 7,000 unknown people including 5,000 contract workers in connection with violence and vandalism.
Apple Inc further said that it is investigating the issues which occurred at Wistron's Narasapura facility and its preliminary findings have indicated violations of the Supplier Code of Conduct.
"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," Apple Inc said.
"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," it added.
Wistron had earlier said that the damage in its factory unit in Kolar's Narasapura due to the violence on December 12 amounted to between Rs 26 crore to Rs 52 crore and not Rs 437 crore as estimated earlier.
Earlier on December 17, Karnataka Chief Minister BS Yediyurappa had said that Prime Minister Narendra Modi is "worried" over the violence at the Wistron iPhone plant and informed that the state government has taken necessary action in the matter. (ANI)