Tuesday, December 15, 2020

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Apple probes supplier after workers at Wistron plant in India rampage

An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City

By Sankalp Phartiyal and Chandini Monnappa

NEW DELHI/BENGALURU (Reuters) - Apple Inc said on Monday it is investigating whether a Taiwan contractor, Wistron Corp, flouted supplier guidelines at an iPhone manufacturing facility in India, after some workers ransacked the plant in a protest over unpaid wages.

Thousands of contract workers gathered on the grounds of the Wistron site on the outskirts of India's tech hub of Bengaluru on Saturday demanding unpaid wages and better working hours.

As police arrived, the crowd turned violent and video from the scene showed people armed with rods and sticks smashing equipment and vandalizing cars, causing what the company estimated at $60 million in damage.

"We have teams on the ground and have immediately launched a detailed investigation at Wistron's Narasapura facility," Apple said in an email, adding it was dedicated to ensuring everyone in its supply chain was treated with dignity and respect.

Apple said it was sending staff and auditors to the site and was cooperating with police in their investigation.


Wistron, one of Apple's top global suppliers, said in a regulatory filing in Taiwan it "always abides by the law, and fully supports and is cooperating with relevant authorities".

Wistron has been making iPhones in India for nearly four years and its operation has been seen as a success story for Prime Minister Narendra Modi's government that is looking to boost manufacturing.

"The incident hurts the 'Make in India' label," said independent brand consultant Harish Bijoor, referring to the government promotion campaign slogan. "Such events are small scars left on India as a manufacturing facility."

Apple, under the leadership of Tim Cook, has been looking to not only step up its marketing and presence in India - one of the biggest smartphone markets in the world - but also expand its sourcing footprint in the South Asian nation.

A minister for the state of Karnataka, where the factory is located, said the government was talking to all parties and that the labour department was investigating any underpayment of wages and non-clearance of other dues.

The unrest comes as Modi's government is under pressure from protesting farmers opposed to reforms in the agricultural sector, which they say threaten their livelihoods.


MILLIONS IN DAMAGES

Videos taken by employees in the Wistron factory showed men, many wearing masks due to the coronavirus outbreak, destroying security cameras, windows and other equipment.

The crowd smashed four cars, two golf carts, stole laptops and smartphones and destroyed other office equipment, according to a police report filed by Wistron and reviewed by Reuters.

In the complaint, Wistron accused more than 5,000 contract workers and some 2,000 unknown people of destruction of property. It put the losses at 4.38 billion rupees ($60 million).

Police have arrested 149 people over the violence, a senior officer said, while a search was on to identify and arrest more perpetrators as the investigation continues.

Trade union leader M.D. Harigovind said the violence was a direct result of the "brutal exploitation of workers and sweatshop like conditions".


Wistron, whose workers are not unionized, did not respond to questions seeking comment on the allegations, but said in a statement earlier it was "deeply shocked" by the violence it blamed on "unknown persons ... with unclear intentions".

(Reporting by Sankalp Phartiyal in New Delhi, Ben Blanchard in Taipei and Chandini Monnappa in Bengaluru; Writing by Nivedita Bhattacharjee; Editing by Euan Rocha, Arun Koyyur and Stephen Coates)


Originally published as 
SABOTAGE, THE CONSCIOUS WITHDRAWAL OF THE WORKERS' INDUSTRIAL EFFICIENCY, in October, 1916, by the IWW publishing bureau, in Cleveland




Apple supplier Wistron puts India plant damage at up to $7 million

Mon, December 14, 2020,
Men wearing protective face masks walk past broken windows of a facility run by Wistron Corp in Narsapura


TAIPEI (Reuters) - The ransacking of an iPhone manufacturing facility in India caused up to T$200 million ($7.12 million) in damage though production facilities were not as badly hit as reported, its Taiwan-based operator Wistron Corp said on Tuesday.

Thousands of contract workers gathered on the grounds of the Wistron site on the outskirts of India's tech hub of Bengaluru on Saturday demanding unpaid wages and better working hours.

As police arrived, the crowd turned violent and video from the scene showed people armed with rods and sticks smashing equipment and vandalising cars. In a police report seen by Reuters, Wistron estimated damages worth $60 million.


However, in a statement to the Taiwan Stock Exchange on Tuesday, the company said major production facilities and warehouses had not suffered as serious damage as reported by local media, and that it was initially estimating losses at T$100-200 million.

The company is doing its utmost to get the plant back up and running, it said. Wistron shares fell around 2.5% in early Asia trade, underperforming Taiwan's broader stock market.

"The company has cooperated with the relevant authorities and the police investigation and continues to negotiate with the insurance company," Wistron added, without elaborating.

Apple Inc said on Monday it was investigating whether Wistron had flouted supplier guidelines. Apple said it was sending staff and auditors to the site and was cooperating with police in their investigation. Wistron is one of Apple's top global suppliers.

It has been making iPhones in India for nearly four years and its operation has been seen as a success story for Prime Minister Narendra Modi's government that is looking to boost manufacturing.

($1 = 28.1040 Taiwan dollars)

(Reporting by Ben Blanchard; Additional reporting by Twinnie Siu in Hong Kong; Editing by Ana Nicolaci da Costa)











Apple Probes iPhone Supplier After Worker Protests Over Wages, Working Hours Turn Violent In India

Shivdeep Dhaliwal
Sun, December 13, 2020


An Apple Inc (NASDAQ: AAPL) supplier’s factory has been attacked by workers in India who claim they were brutally exploited, the Wall Street Journal reported Sunday.

What Happened: Taiwan-based Wistron Corporation, whose factory near Bengaluru is often showcased by Indian authorities as an example of homegrown manufacturing, saw violence including arson by workers angry over wages and working hours, according to the Journal.

M.D. Harigovind, an official from an Indian union, attributed the agitation to “the brutal exploitation of workers and sweatshop-like conditions.”

Wistron said it was “deeply shocked” by the unrest with a spokesperson reportedly saying “we follow the law and are supporting the authorities with their investigation.”

An Apple spokesperson said the tech giant is “dedicated to ensuring everyone in our supply chain is treated with dignity and respect,” the Journal reported. The Cupertino-based company told the Economic Times that it is probing the allegations against Wistron.

Why It Matters: Last month, Apple put another Taiwanese supplier, Pegatron Corporation, on probation after it discovered cases of labor violations.

In mainland China, Apple employees have alleged that the Tim Cook-led company is complicit in the violation of the country’s labor laws.





 

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