<ul><li><keyword id="1930805" type="PERSON" weightage="20" keywordseo="Wistron">Wistron</keyword>, one of <keyword id="6354427" type="ORGANIZATION" weightage="20" keywordseo="apple">Apple</keyword>’s manufacturers for the iPhone in India, is facing trouble with the Indian government over the non-payment and delay in payment of wages. </li><li>According to lawyers, allegations against the company are in violation of three Indian labour laws — the <keyword id="695544" type="PERSON" weightage="20" keywordseo="Payment-of-Wages-Act">Payment of Wages Act</keyword> (PWA) of 1936, the Factories Act (FA) of 1948 and the Contract Labour, <keyword id="3938435" type="PERSON" weightage="20" keywordseo="Regulation-and-Abolition-Act">Regulation and Abolition Act</keyword> (CLRA) of 1970.</li><li>Wistron blames the issue of the payment of salaries to a software ‘glitch’ on its system, which could cushion the blow.</li></ul>Supplier of Apple iPhones in India, Wistron, claims a software ‘glitch’ is the reason why its contract employees’ salaries were being unfairly deducted and payments were four days late. A dispute that led to a violent reaction from the workers at the Narasapur (Karnataka) factory who threw stones, damaged some vehicles and looted some of the iPhones kept for export, according to the FIR filed by Wistron against 7,000 people. <div type="image" title="wistron factory damage1_edited" msid="79790340" hostid="261" caption="&amp;lt;p&amp;gt;Damage to Wistron&amp;#39;s factory in Karnataka after employee protests turned violent&amp;lt;/p&amp;gt;"></div> While that argument may help Wistron cushion the blow, lawyers believe that the current allegations against the company are in violation of three Indian labour laws — the Payment of Wages Act (PWA) of 1936, the Factories Act (FA) of 1948 and the Contract Labour, Regulation and Abolition Act (CLRA) of 1970. The company, which also manufactures IT products for Microsoft and Lenovo, is currently being investigated by Apple, the Karnataka government’s Department of Factories, Boilers, Industrial Safety &amp; Health and the Karnataka Police. “Software glitch can be a reason but that is not of any consequence under the law. That is for Wistron to take care and deal with its software provider,” Neeraj Dubey, a corporate law partner at Singh &amp; Associates told Business Insider. Minimum wage and timely payment of wages The state’s labour department preliminary enquiry has deduced that the hiring agencies were not at fault. It was Wistron’s management, which deducted two to four days’ of salary over the past couple of months due to a software ‘glitch’. <div type="image" title="wistron factory damage 2_edited" msid="79791172" hostid="261" caption="&amp;lt;p&amp;gt;Overturned and burned vehicles left in the wreckage of the violence at Wistron&amp;#39;s factory in Karnataka&amp;lt;/p&amp;gt;"></div> The workers <a href="https://www.thenewsminute.com/article/wistron-iphone-plant-violence-workers-say-months-pent-anger-behind-outburst-139681">said</a> that they were angry because they weren’t paid for the additional hours they worked for many months. Things boiled over after the November wages were delayed by four days. “The law mandates salaries to be disbursed by the 7th of every month. Wistron paid contractors on December 10 and those agencies paid workers the next day. The company has said that the delay was because they were trying to fix the technical snag that had led to the deduction of salaries in the previous months,” the labour commissioner told the press. Under the Payment of Wages Act (PWA) of 1936, not paying wages on time is a punishable offence within stipulates a fine at least ₹1,500 for every violation, but could extend to up to ₹7,000 for first offenders. “Although the agency or the contractor is responsible for payment of wages - if they fail to pay the workers, the liability under the Contract Labour Regulation Act is that of the principal employer’s i.e. Wistron in the present scenario,” Avik Biswas, a partner at IndusLaw, told Business Insider. Dubey adds that there is also scope for an additional fine of ₹10,000 for non-maintenance of proper records pressed against Wistron. Laws to specifically protect contract workers Wistron had hired 9,800 employees through six contractors — Creative Engineers, Quess Corp, Innovsource, Adecco Group, Needs Manpower Support Services and Randstad. While 1,343 were permanent employees, the <a href="https://theprint.in/india/missing-contractors-key-to-solving-mystery-of-wistron-iphone-plant-attack-police-begin-hunt/569016/">other 8,490 were hired on a contract basis</a>. The latter are protected by the Contract Labour - Regulation and Abolition Act (CLRA) of 1970. Under this law, if the investigators find Wistron’s management guilty of non-payment of wages, they could end up in jail for up to three months, be fined up to ₹1,000, or both. Location, location, location Biswa adds that since this incident took place at a factory, the Factories Act (FA) of 1948 will also apply. This dictates that if any worker — including those working on contract — works on the premises for more than nine hours in a day, they’re entitled to overtime wages. These overtime wages have to be at least double the ordinary rate of wages. A preliminary report submitted by the Department of Factories Boilers and Industrial Safety dated 13 December, found that Wistron had increased overtime work hours for employees without informing the Labour Department. It added the difference in pay was not credited along with the salary for the month of November 2020. “The salary of the housekeeping contract workers are not paid till date, and are required to work for 12 hours a day for six days a week, and are being paid the same salary which they were being paid when they were working for 8 hours a day,” said the report. If the allegations hold true, the penalty for not paying or overtime would leave both the occupier and manager of the factory includes imprisonment of up to two years, a fine not exceeding ₹1 lakh or both. “If the contravention is continued after conviction, with a further fine which may extend to ₹1,000 for each day on which the contravention is so continued” explained Biswas. How much protection does the ‘glitch’ offer? According to the law, the company is accountable to be prosecuted. “The reason for non-payment of actual dues is immaterial as making the payment is of paramount significance under the laws,” said Dubey. However, if Wistron can prove that the offence was committed without the knowledge of its employees and Wistron could have done nothing about the software glitch, then Wistron may not be accountable under CLRA. “Similarly, under PWA, there may be no penalty if Wistron can satisfy the law only broken due to a bona fide error — like a software glitch — as to the amount payable to the employed person,” explained Biswas. And, finally, under FA, if the management at Wistron can prove to the satisfaction of the court that they followed due diligence to enforce the law and that the non-payment of wages occurred due to a specific person committing the offence on their own, then the liability of the Company can be significantly limited. SEE ALSO: <a href="https://www.businessinsider.in/science/news/fda-says-it-will-rapidly-work-toward-authorizing-modernas-covid-19-vaccine/articleshow/79789544.cms" data-type="tilCustomLink">FDA says it will 'rapidly work toward' authorizing Moderna's COVID-19 vaccine</a> <a href="https://www.businessinsider.in/tech/news/facebook-and-google-have-been-accused-of-striking-a-secret-illegal-advertising-deal/articleshow/79778780.cms" data-type="tilCustomLink">Facebook and Google have been accused of striking a secret, illegal advertising deal</a>

If investigators find Wistron management guilty, here's what is at stake for the company

<keyword id="6354427" type="COMPANY" weightage="20" keywordseo="apple">Apple</keyword> on Saturday placed <keyword id="3148447" type="COMPANY" weightage="20" keywordseo="Wistron-Corporation">Wistron Corporation</keyword> on probation after finding fault with the company over payment delays in October and November to workers at the Taiwanese contract manufacturer's <keyword id="10433337" type="UNKNOWN" weightage="20" keywordseo="narasapura-facility">Narasapura facility</keyword> near the Karnataka capital. The development comes one week after violence broke out at the Wistron's Narasapura facility as a large number of workers went on a rampage last Saturday over issues related to payment of salary. A Karnataka government report also found lapses in the way Wistron tried to scale up production in the factory. The investigation found that the practices put in place at the plant with regard to payment of wages and overtime work were not in line with the provisions of law. "Apple employees and independent auditors hired by Apple have been working around the clock to investigate the issues which occurred at Wistron's Narasapura facility," Apple said in a statement. "While these investigations are ongoing, our preliminary findings indicate violations of our Supplier Code of Conduct by failing to implement proper working hour management processes. This led to payment delays for some workers in October and November," the company said. Apple said Wistron will not receive any new business from Apple before they complete corrective actions, dealing a blow to its plans to scale up production at the India facility. "As always, our focus is on making sure everyone in our supply chain is protected and treated with dignity and respect. We are very disappointed and taking immediate steps to address these issues," Apple said. "We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions. Apple employees, along with independent auditors, will monitor their progress. Our main objective is to make sure all the workers are treated with dignity and respect, and fully compensated promptly." Wistron on Saturday admitted mistakes and apologised to all workers and also said that it will remove the Vice President who oversees the company's business in India. "Since the unfortunate events at our Narasapura facility we have been investigating and have found that some workers were not paid correctly, or on time. We deeply regret this and apologize to all of our workers," Wistron said. "This is a new facility and we recognise that we made mistakes as we expanded. Some of the processes we put in place to manage labour agencies and payments need to be strengthened and upgraded," it added. The company said that it is "working hard" to ensure all workers are fully compensated immediately. "We have established an employee assistance program for workers at the facility. We also set up a 24-hour grievance hotline in Kannada, Telugu, Tamil, Hindi and English to ensure all workers can voice any concerns they may have anonymously," Wistron said. SEE ALSO: <a href="https://www.businessinsider.in/tech/enterprise/news/wistron-apple-iphone-manufacturer-could-face-these-penalties-if-found-guilty/articleshow/79790319.cms">If investigators find Wistron management guilty, here's what is at stake for the company</a> <a href="https://www.businessinsider.in/tech/news/comparing-the-apple-m1-macbook-vs-the-intel-macbook/articleshow/79733783.cms">Apple vs Intel – Comparing the Apple M1 MacBook vs the Intel MacBook</a>

Apple puts Wistron on probation over Karnataka violence, Wistron fires India VP

<ul><li>The iPhone maker has had its fair share of troubles in India, some of its own doing, and others of its partners.</li><li>With Made in India iPhones now accounting for 70% of <keyword id="6354427" type="General" weightage="100" keywordseo="apple" source="Orion">Apple</keyword>’s India sales, India is an important market for the Cupertino-based company.</li><li>Here’s a look back at some of the major issues that Apple has faced in India recently.</li></ul>The Indian market has long been called a bit of a thorn in Apple’s ambitions in Asia, thanks to a combination of lower disposable incomes, high prices of Apple products, a highly price-sensitive market and a highly competitive market landscape thanks to plenty of affordable Android smartphones. India has often been called a lost opportunity for Apple for various reasons, but the recent Make in India push that offered incentives to smartphone makers, among others, to manufacture their products in India, has put the country back in Apple’s focus. According to a <a>report</a>, every 7 out of 10 iPhones sold in the country are made in India. But the iPhone maker has had less than smooth sailing in the country so far. Here’s a timeline of Apple’s woes in India: <cmsannotation type="cmsannotation" annotationid="2020: Wistron" comment="subhead" text="2020: Wistron">2020: Wistron</cmsannotation> Wistron, one of Apple’s partners engaged in assembling iPhones in India, was <a href="https://www.businessinsider.in/tech/enterprise/news/wistron-apple-iphone-manufacturer-could-face-these-penalties-if-found-guilty/articleshow/79790319.cms">caught in a flare up in late 2020</a>, with thousands of its contract employees alleged unfair salary deductions and late payments. The fiasco forced Apple to put Wistron on probation, which subsequently led to the assembler firing its top official. Both Apple and Wistron admitted to lapses in salary and wage payments, blaming it on a “software glitch”. Wistron also filed a police complaint against 7,000 people after a spate of violence that allegedly resulted in a loss of INR 437 due to stolen iPhones and damaged property. Wistron also assembles products for Microsoft and Lenovo. Weeks later, Apple and independent auditors were <a href="https://www.thehindu.com/sci-tech/technology/apple-wistron-remains-on-probation-india-karnataka-workers-will-be-treated-with-dignity-and-respect/article33791123.ece">said</a> to be working to improve processes and undertake corrective steps to avoid such an issue from cropping up again. <cmsannotation type="cmsannotation" annotationid="2021: Foxconn" comment="subhead" text="2021: Foxconn">2021: Foxconn</cmsannotation> Exactly a year later, another iPhone assembler, Foxconn, is at the centre of Apple’s woes in India. This time, <a href="https://www.businessinsider.in/tech/news/apple-puts-iphone-assembler-foxconns-tn-factory-on-hold-after-food-poisoning-incident/articleshow/88568053.cms">Apple put Foxconn on probation</a> following reports of food poisoning that affected 250 women employees. Apple issued a statement saying that the Sri Perumbudur facility would be allowed to reopen after ensuring strict standards are in place and are being followed. The iPhone maker said it has sent independent auditors to check the dormitories and living conditions, adding that it will implement corrective actions immediately. <cmsannotation type="cmsannotation" annotationid="2021: Anti-trust suit over in-app payments" comment="subhead" text="2021: Anti-trust suit over in-app payments">2021: Anti-trust suit over in-app payments</cmsannotation> A less-known non-profit group “Together We Fight Society” <a href="https://www.businessinsider.in/tech/news/apple-hit-with-antitrust-case-in-india-over-in-app-payment-concerns/articleshow/85862008.cms">filed</a> an anti-trust complaint against Apple for taking a 30% cut from iOS app and game developers. The group that filed the case suggests that Apple’s 30% commission acts as a barrier for app developers while also hurting customers. "These payments and policies act as a hindrance for many developers due to which they never make it to the market," said Rakesh Deshmukh, co-founder of Indus App Bazaar, an Indian alternative app store. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/apple-hit-with-antitrust-case-in-india-over-in-app-payment-concerns/articleshow/85862008.cms">Apple hit with antitrust case in India alleging its 30% commission is unfair for customers and app developers</a> <a href="https://www.businessinsider.in/tech/enterprise/news/wistron-apple-iphone-manufacturer-could-face-these-penalties-if-found-guilty/articleshow/79790319.cms">If investigators find Wistron management guilty, here's what is at stake for the company</a> <a href="https://www.businessinsider.in/tech/news/apple-puts-iphone-assembler-foxconns-tn-factory-on-hold-after-food-poisoning-incident/articleshow/88568053.cms">Apple puts iPhone assembler Foxconn's Tamil Nadu factory on hold after food poisoning incident</a>

Apple’s woes in India: A timeline of the iPhone maker’s turbulent journey in the country

<ul class="summary-list"><li>Workers at an <keyword id="6354606" type="COMPANY" weightage="60" keywordseo="iPhone">iPhone</keyword> factory in <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword> rioted on Saturday after accusing management of witholding wages, according to videos posted online and local news reports.</li><li>Videos showed crowds of people smashing factory windows, burning flipped-over cars, and spraying fire extinguishers. </li><li>Employees demanded the payment pending for a few months and met the HR team on Saturday, Karthik Reddy, a district official, told <a href="https://indianexpress.com/article/cities/bangalore/angry-at-delayed-payments-employees-ransack-narsapura-plant-where-iphones-are-made-7102392/">Indian Express</a> late Saturday. </li></ul>Workers at an iPhone factory in India rioted on Saturday after accusing management of witholding wages, according to videos posted online and local news reports. The violence reportedly was at a plant run by Wistron Corporation, a Taiwan-based manufacturing company used by <keyword id="6354427" type="ORGANIZATION" weightage="60" keywordseo="apple">Apple</keyword> in the India. Videos showed crowds of people smashing factory windows, burning flipped-over cars, and spraying fire extinguishers. Apple and Wistron did not respond to a requests for comment on Sunday.The dispute in Narasapura, a suburb of Bengaluru, started as overnight workers left the factory early Saturday morning, according to <a href="https://timesofindia.indiatimes.com/city/bengaluru/violence-breaks-out-at-wistron-corps-iphone-manufacturing-plant-near-bengaluru/articleshow/79691511.cms">The Times of India</a>. Workers who had recently had their wages reduced - some by about a quarter - started discussing it on the factory floor overnight, the newspaper said.Some reportedly only received tiny fractions of the pay that had been promised. By morning, the discussion had turned violent.<blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—TOI Bengaluru (@TOIBengaluru) <a href="https://twitter.com/mims/statuses/1337615298761912321?ref_src=twsrc%5Etfw">December 12, 2020</a></blockquote>"The employees demanded the payment pending for a few months and met the human resources department officials on Saturday. After this, a few employees attacked the office and damaged the office premises and furniture," Karthik Reddy, a district official, told <a href="https://indianexpress.com/article/cities/bangalore/angry-at-delayed-payments-employees-ransack-narsapura-plant-where-iphones-are-made-7102392/">Indian Express</a> late Saturday. About 2,000 employees were involved the in riots, according to <a href="https://www.indiatvnews.com/business/news-iphone-plant-wistron-karnataka-vandalised-employees-violence-salary-dues-apple-670932">India TV</a>. Reddy reportedly said the district planned to arrest workers caught on CCTV. <blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—The Indian Express (@IndianExpress) <a href="https://twitter.com/mims/statuses/1337730427985874944?ref_src=twsrc%5Etfw">December 12, 2020</a></blockquote>The weekend violence caught the attention of C T Ravi, BJP National General Secretary I/C of the region, who called for an investigation by state officials. <blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—C T Ravi ಸಿ ಟಿ ರವಿ (@CTRavi_BJP) <a href="https://twitter.com/mims/statuses/1337983164514402304?ref_src=twsrc%5Etfw">December 13, 2020</a></blockquote>"It is unfortunate that Wistron manufacturing plant was violently attacked by agitating workers near Kolara. At a time when many companies are shifting base from China to India, such attacks give a bad name for the State," he said on Twitter.Wistron opened the plant earlier this year, hiring about 5,000 new employees, according to a June report in <a href="https://www.deccanherald.com/business/wistron-to-start-iphone-production-at-narasapura-soon-to-hire-5000-workers-867611.html.">The Deccon Herald</a>. India TV reported that the 43-acre factory will have 10,000 employees when it's fully staffed.

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If investigators find Wistron management guilty, here's what is at stake for the company

Prabhjote Gill

Apple puts Wistron on probation over Karnataka violence, Wistron fires India VP

IANS

Apple’s woes in India: A timeline of the iPhone maker’s turbulent journey in the country

Rounak Jain

An iPhone factory in India has erupted in violence over a dispute about workers' pay

Kevin Shalvey