Apple supplier Wistron could not manage scaled up India plant, government report says

Bengaluru

Apple supplier Wistron’s Indian factory in Karnataka state could not cope up with the rapid scaling up of manpower and breached several laws, a government inspection has revealed following violence at the site last weekend.

Several thousand contract workers at Wistron angered over alleged non-payment of wages destroyed property, factory gear and iPhones at the plant early on Dec. 12, causing millions of dollars in losses to the Taiwanese contract manufacturer and forcing it to shut the plant.

The manpower at this plant, which assembles one iPhone model and became operational earlier this year, rose to 10,500 workers from the permitted 5,000 in a short span of time, according to a Karnataka factories department report, a copy of which was reviewed by Reuters.

“Though 10,500 workers are employed in the factory the HR department has not been adequately set up with personnel of sound knowledge of labour laws,” said the report of the inspection conducted on Dec. 13.

The report said there is a wide gap between practices followed at the factory and legal requirements.

Wistron did not respond to a request for comment.