Apple places manufacturer Wistron on probation following worker riot


Cutting corners: Apple has placed Wistron – an iPhone manufacturer – on probation following a recent riot among the manufacturer’s workforce at one of its plants in India. In the wake of the riot, Wistron was accused by its workers of serious labor violations, and, following a recent investigation, it turns out those claims were legitimate.

The riot took place at Wistron’s Narasapura plant in India earlier this month, and happened towards the end of one of the manufacturing shifts. Workers destroyed property, upturned vehicles, and stormed the offices of senior executives. According to employees, Wistron has been paying workers significantly less than the salaries they were originally promised.

After an initial investigation, a preliminary report from the local government has found that the workers’ claims are indeed legitimate: Wistron has been underpaying employees and forcing them to work additional hours. The South China Morning Post adds that there have been allegations of middlemen exploiting the contract workers and skimming their wages.

While the Taiwan-based Wistron has issued an apology and fired its vice president of business in India, Apple has moved to suspend further business with the manufacturer until worker conditions have been improved.

In November, Apple also placed supplier Pegatron on probation for shady labor practices. As such, critics are calling for Apple to better regulate its manufacturers around the world – some have questioned whether in the pursuit of high production targets, Apple turns a blind eye to poor labor conditions.

Gregory E. Crayton
Gregory E. Crayton has around 5+ years of experience in market research and consulting services for ICT & Semiconductor domain. He holds varied experience in market sizing and forecasting with varied models, competition landscape, consumer behavior analysis, opportunity analysis, product/company benchmarking, data mining, and others.

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