Topline
Multiple labor laws were violated at an iPhone manufacturing facility in the southern Indian state of Karnataka where protests by workers turned violent last week, the South China Morning Post reported, once again putting a spotlight on questionable labor practices in Apple’s supply chain in Asia.
Key Facts
According to an unreleased Karnataka state government report, Taiwanese contractor Wistron Corp allegedly engaged in exploitative practices such as underpayment of wages, irregular hours and poor working conditions in its iPhone assembling factory.
The Apple contractor’s human resources department reportedly had poor knowledge of labor regulations in India and it lacked adequate personnel to manage the factory’s 10,500 workers.
The report suggests Wistron should have been more “proactive” in establishing proper labor practices as mandated by the law.
Forbes has reached out to Apple for a comment on the Morning Post’s report but the company previously stated it has launched an investigation into the incident and has staffers on location.
Initial reports suggested that violence at the factory had led to $60 million in damages, but this was later revised down to $7.7 million.
Local police have so far arrested 149 people over the incident, Forbes was able to confirm.
Big Number
20. That’s the total number of manufacturing facilities Apple has removed from its supply chain because of labor violations over the years, the company disclosed in its 2019 supplier responsibility progress report.
Key Background
The incident could turn out to be a major black-eye for Apple if Indian investigators concur with the findings of the unreleased report. The iPhone maker has previously faced scrutiny about harsh labor practices in its supply chain. In November, the company put Pegatron — another Taiwanese contractor — on probation after it was found to have concealed violations of labor rules at its factories in China. Pentagon reportedly employed student laborers to work night shifts, overtime and do work unrelated to their fields of study, and then the company falsified documents to hide this. Reporting on the incident the New York Times noted Apple’s rebuke was “ rare for such a high-profile supplier.” The most serious concerns about harsh conditions in Apple’s supply chain emerged in 2010 after multiple cases of worker suicides were reported at its contractor, Foxconn’s plants in China.
Tangent
So far, local politicians and authorities have expressed more concern about the incident tarnishing the region’s image as an investment hub. Some commentators in India reacted to the news of the $7.7 million damages by condemning the protesting workers. Even the state’s minister for industries Jagadish Shettar said the state government will provide necessary protection to Wistron and take “stringent measures to prevent such unpleasant events from recurring.”
Further Reading
Wistron’s Apple factory in India committed serious violations of labour laws, report finds (South China Morning Post)
Violence Erupts At iPhone Factory In India Over Alleged Unpaid Wages, Apple Investigating Incident (Forbes)