Supply Chain Risk Management
Apple is reported as saying that their supplier Wistron had failed to implement proper working hour management processes, which “led to payment delays for some workers in October and November”. Wistron on Saturday admitted some workers at the plant in Karnataka’s Narasapura had not been paid properly or on time, and it was removing a top executive overseeing its India business.
Apple will continue to monitor Wistron’s progress on corrective action, but why was an earlier audit not arranged or if it was why did it not pick up on issues before significant risk event occurred?
The supplier allegedly could not cope with the rapid scaling up of manpower and breached several laws according to Karnataka state officials after an inspection of the plant following the violence and destruction. The HR department was not been adequately set up with personnel of sound knowledge of labour laws as reported by Reuters news agency. Reuters further reported other violations including underpayment of wages to contract workers and housekeeping staff, and making female staff work overtime without legal authorisation. The findings seen by Reuters and another preliminary government audit confirm the grievances over unpaid wages and poor attendance recording systems.
Apple began the assembly of its first iPhone model in India via Wistron in 2017.