HomeBUSINESSApple, Wistron admit the lapses in payments to workers in Karnataka

Apple, Wistron admit the lapses in payments to workers in Karnataka

Apple and its Taiwanese contract manufacturer who is Wistron on 18th December, Saturday published separate statements accepting that there were failures in payments to the workers in its Narasapura facility which is near Bengaluru in the month of October and November. This is a facility that serves the employment around 12,000 employees and it saw large-scale violence and also the destruction of company assets last Saturday.

Apple company said that it was very disappointed with what happened and its findings indicate about the violations of its Supplier Code of Conduct by failing to implement the proper working hour management processes. It said that they have placed Wistron on a process for testing and they will not receive any new business from Apple right now before they complete corrective actions.

Wistron has dismissed Vincent Lee who is the vice-president of the their company. Vincet, who is based in Taiwan, he had called upon BS Yediyurappa who is the Karnataka chief minister. He called him earlier in this month when he visited Bengaluru. They further told that Wistron has settled the pending payments.

Wistron a company which makes iPhones and also other products. It said in its statement that the Narasapura facility is new and that they recognise that they made mistakes as they expanded. It said that some of the processes were put in place to manage the labour agencies and the payments need to be upgraded and strengthened.

They said that they are taking immediate action to correct this, including the disciplinary action. They are removing the vice-president who oversees their business in India. They are also enhancing their processes and restructuring their teams to ensure that these issues should happen again.

The labour department of Karnataka investigated and said to have found that Wistron was not maintaining proper appointment and also not maintain employment details, they were not maintaining up-to-date salary and the attendance records, and it was asking workers to do 12-hour shifts.
Wistron, in a statement said that the safety and wellbeing of their team members is always their top priority and a core value for every person at Wistron.

They further said that since the unfortunate events at their Narasapura facility they have been investigating and have even found that some workers were not paid correctly and some were not paid on time. They deeply regret this and have also apologized to all of their workers.

The company said that it has established an employee assistance program for workers at the facility. They have also set up a 24-hour complaint hotline in order to ensure that all the workers can voice any concerns that they may have.

Apple said it was taking immediate actions to address all issues. It said that Wistron has taken action and is restructuring their recruitment and the payroll teams in Narasapura. Employees of Apple, along with the independent auditors, will now be monitoring their progress. Their main objective is to make sure that all the workers are treated with dignity and respect. Also that all the workers are fully compensated promptly


Apple, Wistron admit the lapses in payments to workers in Karnataka
Apple, Wistron admit the lapses in payments to workers in Karnataka

Wistron had committed and have said to invest an amount of Rs 3,000 crore in the 43-acre of land in Narasapura. Much of the hiring for that was done through staffing solutions firms which included Randstad, Quess Corp, Innovsource, Adecco India and Creative Engineers. Many of those hired people through these agencies are on contract. Sources told that they were in the onboarding process. They also told that the non-payment of dues were on the part of four of these agencies. The hiring rate was intense. It had a headcount which was rising from 1,500 to 12,000 within three months. Wistron pays the agencies after they produce invoices on the payment of the salaries.

Wistron is have suffered a loss of between an amount Rs 40 and 50 crore in this violence. In the police complaint, a figure of Rs 437 crore as a loss was mentioned.

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