Experts have reported that Apple is ultimately liable for any unauthorized wage cuts at the iPhone assembly plant in India.
This incident was triggered by a massive riot at the Indian factory of Wistron, Taiwan, a consigned iPhone manufacturer. On the day of the incident, more than 2,000 employees were reported to attack a production facility, break a window, overturn a company vehicle, and set a fire.
It is said that the allegations that the riots occurred after the laborer’s talks with personnel managers for up to four months of wage cuts and delinquent payments were not resolved, and were later acknowledged by the Indian government as true. The government is issuing a statement that it has found serious labor law violations as a result of the investigation. Prior to this, the local media reported the tragedy of some employees who received only about 7,000 won in a month.
However, according to this report, one legal frontier asked the state to participate in the Apple investigation. Local law suggests that Wistron, the contractor, is responsible for paying wages as well as the responsibility of Apple, the main employer, and authorities can ask both Apple and Wistron for explanation.
Apart from the state, Apple has also announced that it has conducted its own investigation and has confirmed that Wistron is violating its Supplier Code of Conduct. In addition, Wistron is temporarily suspending new transactions and practically taking probation until corrective action is taken.
Meanwhile, since the existing contract remains, the operation of the factory does not stop immediately. This is the same as the action taken in November for a violation of the code of conduct against a major supplier, Pegatron. However, if additional contracts are not available, Wistron may not be able to meet its required production targets by the deadline set by the Indian government and may not receive production incentives announced in October. It may be a sanction that includes this.
It doesn’t say whether the legal liability for Apple is paying unpaid wages, but the attitude of leaving production to the supplier and not being involved in on-site working conditions may not work. Related information can be found here .