Foxconn gets govt approval to restart operations at India unit

Apple’s contract manufacturer Foxconn has got the Tamil Nadu government’s approval to restart operations at the Sriperumbudur unit which was shut earlier this month following protests sparked by a food poisoning incident. Operations can be started in a phase-wise manner, a senior state government official told Business Standard.

However, with Apple putting the unit on “probation” early this week for not complying with its standards, the chances of an immediate restart of operations are unlikely, according to sources aware of the development.

“We have given them all the necessary clearances from the state government’s side to restart the operations a few days ago. They are likely to start work very soon,” said a state government source on the condition of anonymity.

At least 260 people got affected and around 159 had got hospitalised early this month after an incident of food poisoning at one of the staff hostels of the Foxconn unit. Following this, Apple had conducted a third-party audit, based on which it found the dormitory and dining facilities not meeting the handset maker’s international standards. This led to Apple putting the Tamil Nadu unit on probation. “Restarting the operations may take some time, maybe a few weeks. Unless they meet the Apple standards, it is unlikely,” said a source close to the development.

In December 2020, Apple had put Wistron’s facility at Narasapura in Karnataka on probation, after a rampage by its workers over alleged non-payment of wages. Wistron suffered losses of around Rs 430 crore. After the incident, it took at least three months for Wistron to restart the operations in March 2021.

As a corrective measure, Foxconn, too, had announced the restructuring of its management. Apologising to its employees, the company said it was taking measures to enhance facilities at its dormitories.

A senior district-level official told Business Standard there is no roadblock from the side of authorities to restart operations. However, the local police is also investigating the food poisoning incident and the protests that led to the blocking of the Chennai-Bengaluru highway. The state government had also asked Foxconn to provide basic amenities. Business Journal