Apple Puts Wistron on Probation After India Plant Violence

Apple has put its manufacturing partner, Wistron, under review and will not assign any further projects to the Taiwanese company until it fully addresses identified shortcomings at its plant in southern India.

The iPhone manufacturer stated on Saturday that both its own personnel and independent auditors investigating conditions at Wistron’s Narasapura facility discovered breaches of Apple’s “Supplier Code of Conduct.” Specifically, Wistron did not adequately manage employee working hours, resulting in “delayed compensation for certain employees during October and November,” according to preliminary findings released by Apple.

“Our priority remains the safety and respectful treatment of every individual within our supply chain. We are deeply concerned by these findings and are taking swift action to resolve them. Wistron has implemented disciplinary measures and is reorganizing its staffing and payroll departments at the Narasapura location,” Apple explained in its official statement. “Progress will be closely monitored by Apple employees and independent auditors.”

On December 12, a significant number of workers protested over unpaid wages – approximately $200 per month – at Wistron’s Narasapura plant, located roughly 40 miles from Bangalore, a major technology center. The protest involved damage to property, including windows, iPhones, and manufacturing equipment. Wistron, a crucial manufacturing collaborator for Apple in India, has significantly increased its workforce and production capabilities within the country this year.

A report issued this week by the Karnataka state government confirmed serious violations of labor regulations at Wistron’s Indian facility, including insufficient wages, excessive working hours, and inadequate working conditions. The report estimated the damage from the recent unrest at $7 million and indicated that Wistron struggled to effectively manage its recent workforce expansion.

Wistron previously acknowledged that some employees at the plant experienced payment issues. The company also announced the removal of a senior executive responsible for its Indian operations. “Certain procedures related to managing labor agencies and processing payments require strengthening and improvement. We are also refining our processes and restructuring teams to prevent recurrence of these problems. An employee support program has been established for workers at the facility, and a 24-hour grievance hotline is available in Kannada, Telugu, Tamil, Hindi, and English to allow workers to anonymously report any concerns,” the company stated.

Wistron currently assembles earlier iPhone models at its Indian plant. In recent years, Apple has expanded its partnerships to include companies like Foxconn to increase iPhone production capacity in India, the world’s second-largest smartphone market, where Apple currently holds approximately 1% of the market share. Foxconn began assembling the iPhone 11 in India earlier this year. Manufacturing phones within India allows smartphone companies to avoid the roughly 20% import tax imposed by the Indian government on imported electronic devices.

“India operates under a democratic system. Its labor unions are active, and local political leaders must respond to constituent concerns. Companies seeking to capitalize on the large domestic market and abundant labor force will need to adapt to a reality where workers may be more assertive in advocating for their rights. Tim Cook and Apple must now become accustomed to their brand being associated with terms like ‘riot’ and ‘uprising.’ While the criticism currently focuses on Wistron, Apple, as the client, possesses the authority to enforce change, a tactic it has successfully employed in China over the past decade,” noted Bloomberg columnist Tim Culpan.