Yesterday Patently Apple posted a report titled "The Indian Government finds Wistron guilty of serious labor violations at their iPhone Plant but investigating possible 'Middlemen' Scam."
Today it's being reported that Apple has decided to place its contract manufacturer Wistron in southern India on probation and halt new business until it takes concrete corrective actions.
In the early stages of Apple's audit following the violence at the Wistron plant in southern Karnataka state last weekend, shows clear violations of their public ‘Supplier Code of Conduct.'
Apple stated that Wistron failed to implement proper working hour management processes, which "led to payment delays for some workers in October and November."
Apple will continue to monitor Wistron’s progress on corrective action, the Cupertino-California based company said.
Apple further stated: "Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly."
In a statement earlier on Saturday, Wistron admitted some workers at its plant in Karnataka’s Kolar district had not been paid properly and said it was removing a top executive overseeing India business. For more read the full Reuters report.
In a secondary Reuters report published today they noted that "Wistron introduced 12-hour shifts from the earlier eight-hour shifts at the plant in October but failed to properly address “the confusion in the minds of the workers” about their new wages inclusive of overtime, the report noted.
The company also did not inform the factories department of the new work shifts, it said.
Wistron, which also changed its attendance system in October, did not fix for two months a glitch which caused employees’ presence to be incorrectly registered, the probe found.
Some other violations highlighted in the report included underpayment of wages to contract workers and housekeeping staff, and making women staff work overtime without legal authorization."