iPhone supplier overhauls workings after factory riot

“This is Wistron signaling to investors, to clients, to India that it has moved beyond the shadow of the December incident”

What you need to know

  • Apple supplier Wistron has overhauled its India operation.
  • It follows a riot at an iPhone factory in India in December.
  • The company has changed its internal setup and management ranks following an investigation into the incident.

Apple iPhone supplier Wistron has made big internal changes following an investigation into a riot that broke out at one of its factories in December.

from Reuters:

Wistron Corp, the Taiwanese assembler of Apple Inc’s iPhones, has restructured its internal setup and management ranks in India, two sources said, after an investigation last year into violence at one of its plants.
Wistron’s smooth working is key to Apple’s ambitions in India as it gradually moves production to markets beyond China, navigating the trade war between Washington and Beijing and the coronavirus pandemic.

The report notes it has also “curtailed” the role of its India head and operations head. One industry source said the move signaled Wistron had “moved beyond the shadow of the December incident, and is ready for new business”. Internal reporting structures will also reportedly change following the review.

Work resumed at the Wistron factory in March after a riot broke out amongst workers in December over allegations of unpaid wages. A report found serious violations of labor laws in the country, which later reports claim may have been caused by a massive hiring spree that overwhelmed the company’s HR infrastructure. Apple placed the company on probation in late December, meaning it will not receive any more new contracts from the company until they are satisfied steps have been taken to rectify the issues.

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