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Karnataka government may make Apple party to inquiry into violence at Wistron

The Karnataka government could make Apple a party to the inquiry into the violence at the Wistron factory that makes iPhones, people familiar with the matter said. Apple, which is also investigating the incident at the contract manufacturer’s plant, said its own review has found violations in the supplier code of conduct. The firm is also checking if Wistron had sought its prior approval for extending working hours.

“Apple could be asked to share details of its investigation with the labour authorities/court,” said one of the people cited above, adding that a series of connected Supreme Court and high court rulings upheld the primary employer’s responsibility.

Legal experts said the state government can ask Apple to join the investigations. “According to the Contract Labour (Regulation and Abolition) Act, 1970, the contractor is responsible for the payment of wages and the principal employer is ultimately responsible for it,” said one of them. This implies that authorities can seek explanations from both Apple and Wistron.

Wistron admitted to lapses in some of its payment obligations, sacked a senior executive and is taking steps to ensure such incidents are not repeated. Apple and Wistron didn’t respond to queries till press time on Sunday.

Pause on Orders
Apple on Saturday said it had placed Wistron on probation and the contract maker would not get any new business until it took corrective action. “Apple employees, along with independent auditors, will monitor their progress,” it added.

This probation could impact Wistron’s ability to meet its production linked incentive (PLI) targets. Under the scheme, overseas companies have to produce smartphones worth ₹4,000 crore over the base year’s production along with investment of ₹250 crore through the first year, a target that Wistron is likely to miss, said industry executives. The incentives add up to 4-6% of such additional sales. TechnoCodex

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