Apple Cracks Down On Wistron After Karnataka Violence: To Give No New Orders Until Complete Corrective Action

In a major development since recent vandalism at Apple Inc's contract manufacturer, Wistron's facility at Karnataka's Narasapura, the Cupertino, United States (US) based technology major has announced that it shall provide no new business contracts to Wistron globally until it completes all the corrective measures at the Karnataka facility, reports Business Standard.

Apple Inc said in a statement, "We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective action."

The company added, “Apple employees, along with independent auditors, will monitor their progress. Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly.”

Apple Inc also stated, "While these investigations are ongoing, our preliminary findings indicate violations of our Supplier Code of Conduct by failing to implement proper working hour management processes. This led to payment delays for some workers in October and November."

The action by Tim Cook led Apple Inc comes after Wistron yesterday (19 December) acknowledged to certain lapses on its part in disbursing payments to the workers at the facility situated in Kolar district. Wistron had also announced a serious of actions and measures that it had decided to take up post the incident.

As a part of these actions, Wistron also fired its vice president overseeing India operations Vincent Lee. The company had also issued an apology to all its workers and assured that they will all be compensated immediately.