Apple puts Wistron on probation, confirms violation of supplier code of conduct that led to payment lapses

A week after Taiwanese contract manufacturer Wistron's plant was damaged during an incident of vandalism by a few workers, Apple's preliminary findings indicate violations of 'Apple's Supplier Code of Conduct' leading to payment delays for some workers. As a result, Apple has placed Wistron on probation and the company will not receive any new business from Apple before corrective actions are completed.

Apple employees and independent auditors hired by the American tech giant have been working round the clock to investigate the issues that 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," says Apple.

Also Read: Wistron fires India Vice-President, admits abuse of labour at Karnataka iPhone plant

Apple has a six-page long 'Suppliers Code of Conduct'. The company assesses its suppliers' compliance with this code, and any violations of the same can jeopardise a supplier's business relationship with Apple, up to and including termination.

The code applies to all Apple suppliers and their subsidiaries, affiliates, and subcontractors and next-tier suppliers (each a "Supplier") providing goods or services to the company, or for use in or with Apple products. Disappointed with the current events, the company has taken immediate action. "We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions," says Apple.

Also Read: Protests at Wistron iPhone facility a threat to PM Modi's 'Make in India' vision

Besides, Wistron has also taken disciplinary action and is restructuring its 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," adds Apple.

The company focuses on making sure everyone in the supply chain is protected and treated with dignity and respect. "Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly," says Apple.

The company's employees, along with independent auditors, will continue to monitor their progress.

Also Read: iPhone factory in Karnataka ransacked: Wistron assesses damage at Rs 437 crore