Wistron Apologizes To Workers For Mishandling Their Wages

  • Earlier this week, Several workers had vandalized the Wistron’s assembly plant.
  • The company has removed the Vice President, which oversees its business in India.
  • Our top priority is to ensure all workers are fully compensated immediately, said the company.

A week after the workers’ riot, Taiwan-based Wistron Corporation, which was contracted by Apple Inc. to assemble an iPhone in India, has apologized to workers for not getting paid on time.

The company has also removed Vice President Vincent Lee, which manages Wistron’s operation in India. It further admitted that some workers were not paid correctly/on time. “Safety and wellbeing is always our top priority,” Wistron said in a letter to its employees.

“Since the unfortunate events at our Narasapura facility we have been investigating and have found that some workers were not paid correctly, or on time. We deeply regret this and apologize to all of our workers,” the company added.

Apple has placed Wistron on probation and has stopped giving new orders until the issue gets resolved.

Last week, Taiwan-based Wistron’s workers had damaged the assembly plant for not getting paid on time. Some workers had also accused the management of overworking the factory workers and violating norms under the Factories Act. 

According to the reports, the riot caused around $7 million worth of damage at the Wistron’s plant.

Workers said that they have submitted several requests to the management to pay salary on time, one of the workers said.

Wistron has investigated and discovered that the workers had legitimate complaints, said Wistron spokeswoman Joyce Chou. To ensure the workers’ for future safety, It has started an anonymous hot-line for complaints and created other avenues for employees to disclose their concerns.

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“We are very disappointed and taking immediate steps to address these issues. Wistron has taken disciplinary action and is restructuring its recruitment and payroll teams in Narasapura, the company said in a statement.

“They have also set up an employee assistance program and a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi, and English to ensure all workers at the facility can voice any concerns, anonymously.  Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly,” it added. 

Last month, Wistron Corporation had announced that the company will be investing Rs 1,265 crore to increase its manufacturing capacity and strengthen the supply chain.

Many industry people believe that the workers’ act could hurt the foreign investors’ sentiments towards investing in the country.

It is worth noting that India has seen significant growth in FDI over the last few years. According to the report by the Department for Promotion of Industry and Internal Trade (DPIIT), During the period between April (2020) and September (2020), India has received over Rs 2.24 lakh crore FDI (Foreign Direct Investment), which is 23% higher compared to the previous year period.

with some inputs from ANI

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