According to a report reviewed by Reuters, the Labor Department conducted a preliminary investigation into violence at a factory operated by Apple supplier Wistron last weekend and found that the Taiwanese company and its suppliers had several infringements.
Angry workers complained that months of non-payment of wages led to the smashing of equipment and iPhone models at Wistron’s factory about 50 kilometers from the Wistron factory on Saturday. Technology The Bangalore hub caused millions of dollars in damage to the company and forced it to close the website.
The Labor Department of Koral State, Karnataka State, where the factory is located, stated in a report that the audit of the factory was discovered several hours later and “violated certain labor laws.”
Wistron, one of Apple’s largest contract manufacturers in the world, did not respond to a request for comment on this report, which has not yet been made public.
Apple is conducting its own audit to find out whether Wistron has violated supplier guidelines, and Apple has not responded to a request for comment.
The labor office stated that Wistron did not maintain proper employment, and the appointment details of workers and employees who worked 12-hour shifts at the Kolar factory did not pay overtime.
The office said that the company did not keep wages and attendance records as required by law, and that contractors were dissatisfied with not paying extra overtime, and added that Wistron failed to submit these records as needed.
The report also designated Wistron’s three manpower suppliers, namely Creative Engineers, Quess and Addeco India, to exceed the hiring quota allowed by government regulations.
Quess and Addeco did not immediately respond to requests for comment, so Creative Engineers could not be reached.
The inspection also found that a malfunction of the attendance machine or software caused workers to complain that they owed them insufficient wages.
The office said: “This has attracted management’s attention, but it has not been resolved.”
Although the investigation was preliminary, it still confirmed the dissatisfaction of the factory workers. Reuters interviewed six of them.
The auditor asked Wistron to submit some documents to the Labor Bureau within three days. It is not clear whether Wistron complies with this requirement.
The Karnataka government said this week that it will help Wistron to restart operations and resolve workers’ concerns.
It has not commented on the report’s conclusions.
Although the union criticized the state government for being “weak” to the company, it did not sympathize with employees working in a “sweatshop-like situation.”
This incident hit Wistron’s local manufacturing development and weakened Apple’s reputation in key growth markets.
© Thomson Reuters 2020
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