Apple’s challenges with its supply chain are compounding in Asia

Following revelations of delayed payments to workers, Apple has placed another key supplier in Asia on probation. This move comes after reports surfaced of unrest at an iPhone factory in India operated by Taiwanese company Wistron.

An investigation was initiated by Apple following local media coverage of workers vandalizing the facility near Bangalore, alleging non-payment of wages. Confirming the delays in payments during October and November, an independent audit was conducted post the unrest.

“Our priority remains ensuring fair treatment and prompt compensation for all workers,” Apple stated, expressing disappointment and halting further orders with Wistron in response to the audit findings. Wistron has yet to respond to inquiries from CNN Business, though reports indicate the removal of a senior executive overseeing their Indian operations.

“We acknowledge our missteps in the expansion of our operations,” Wistron conveyed, announcing the dismissal of the vice president responsible for Indian operations.

This incident adds to Apple’s recent labor challenges in Asia. Pegatron, another major supplier, was also placed on probation for labor violations involving student workers in China. Despite remedial actions, protests erupted over unpaid bonuses and wages.

While Pegatron declined to comment, Apple emphasized ongoing efforts to address labor concerns, including increased oversight and audits.

The unrest at Wistron’s Indian facility garnered global attention, with estimated damages reaching $7 million. In response, Wistron has initiated disciplinary measures and is restructuring its recruitment and payroll teams.

Furthermore, Apple has established a hotline for anonymous worker grievances at the affected facility. Despite ongoing criticism, Apple remains committed to improving labor practices through rigorous audits across its global supply chain.