Apple launches probe into Narasapura’s Wistron violence | Bengaluru News – Times of India

BENGALURU: Apple has launched a full-scale investigation into iPhone contract manufacturer Wistron’s Narasapura facility, about 70km from Bengaluru, after workers went on the rampage on Saturday alleging non-payment of due wages.
“Apple is dedicated to ensuring everyone in our supply chain is treated with dignity and respect. We have teams on the ground and immediately launched a detailed investigation at Wistron’s Narasapura facility in India. We are also dispatching additional Apple team members and auditors to the facility. Our teams are in close touch with the local authorities and we’re offering our full support to their investigation,” the company said. The violence is estimated to have caused Rs 437 crore in losses.

Had anticipated trouble and approached police: Wistron
Saturday’s violence is estimated to have caused Rs 437 crore in losses, much of it because of damage to equipment, and pilferage of iPhones and laptops. Some 156 people have been arrested.
TOI reported on Sunday that the incident has come under Apple’s scanner.
In the past, Apple has come down heavily on contract manufacturers for breaching its supplier code of conduct. Last month, Apple’s key supplier Pegatron broke the former’s supply chain rules after the Taiwanese firm asked students to work night shifts and overtime at one of its plants in mainland China. Apple Supplier Responsibility 2020 Progress Report showed that of the12 core violations found in the labour and human rights category in 2019, 10 were related to working-hours violations.
Sudipto Gupta, managing director of the innovation business group at Wistron Smart Devices, said, “We are deeply shocked by the events at our Narasapura facility. We follow the law and are supporting the authorities with their investigation. The safety and wellbeing of our team members is always our top priority.”
Wistron had committed to investing Rs 3,000 crore in the 43-acre Narasapura land. It has ramped up its headcount in the facility from 1,500 to 12,000 in three months through third-party contract staffing agencies. Wistron and the recruitment agencies had signed contracts on the terms of payment to these employees including overtime dues. Wistron pays the agencies after they produce invoices on the payment of salaries. Sources told TOI that the overtime wages took time to be tabulated and there was a delay.
Sources said Wistron had submitted an advanced information complaint on December 11 at the local police station. “Only four constables showed up. When the violence broke out, most troublemakers were in buses on a specific route. There is a conspiracy,” one source said.
The incident has Karnataka worried, since Tamil Nadu and Andhra Pradesh are aggressively wooing manufacturers. Three of Apple’s contract manufacturers — Foxconn, Pegatron and Wistron –have big plans in India.
Reuters had reported that Foxconn plans to invest up to $1billion to expand its factory in Sriperumbudur where the iPhone XR is made. Pegatron’s board is said to have approved a $150-million investment to set up manufacturing facilities in India.
Gaurav Gupta, principal secretary, commerce & industries, Karnataka government, said, “Whatever has happened is unprecedented and unfortunate…. Our priority is to ensure Wistron restarts its operations after required certifications and addressing the issues adequately.”