IPhone manufacturer Apple Inc. (AAPL) won’ be giving its Taiwan based supplier Wistron Corp. (TPE: 3231) any more business until the company solves wrangles with its employees based in a southern India factory.
This probation comes after an audit by Apple revealed there was violence in Wistron plant in India’s Karnataka state. Apple said such amounted to violation of its supplier code of conduct by Wistron.
According to Apple’s audit, contract employees of Wistron were angry over unpaid salaries erupting chaos and violence which resulted to destroy of properties including IPhones and gears running into millions of dollars.
“Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly,” said Apple.
Apple found Wistron responsible for the predicament since it had failed to come up with a suitable working hour management process which resulted to delay in payment of employees in October and November.
Wistron has since accepted the blame admitting some employees at the factory had not been paid on time or adequately. The company promised to resolve the matter best way possible in the shortest time possible further adding it would be sacking a top executive in charge of Wistron’s India business.
Apple says it will continue keeping an eye on Wistron until the matter is fully resolved amicably.