If you don’t know, iPhones are assembled by Apple’s contract maker Wistron in India. The Taiwanese company has a plant located in Kolar, about 50 kilometers outside of Bengaluru, and has been in the news for the past few days. Employees hired at this plant started a protest and then broke out over unpaid wages for the past three months.
Angry employees set six vehicles on fire, damaged furniture and factory equipment, and looted the plant, stealing thousands of iPhones, during the protest. Wistron revealed in a police complaint on Monday that the protests caused losses of an estimated value of Rs. 437 crore (~ $ 60 million). The violence lasted about two hours and more than 100 people were arrested. While the estimated figure was higher, Wistron now reports close to $ 7 million in general damages (via Reuters).
Karnataka Labor Minister Shivaram Hebbar revealed that Wistron has almost 1,200 permanent employees. It hired six companies and then hired 8,900 contract employees. And the problem in question is that Wistron appears to have paid the contracting companies the workers’ wages, but they haven’t been given the same in three months. The Taiwanese giant received a notice to settle salary quotas within the next three days.
“This accident was created by unknown persons who broke in also caused damage to this plant with unclear intentions. The company always complies with the law and fully supports and cooperates with the relevant authorities and police investigations, ”Wistron said in an official statement.
Apple has reportedly launched an investigation to examine whether its manufacturing partner violated the supplier’s guidelines or not. He’s sending staff and auditors to the plant. On the production side, Wistron revealed that the production lines were not as seriously damaged as previously estimated. It is working to restart the assembly of Apple iPhones (along with Lenovo and Microsoft products) at its Kolar plant.
Ultimately, this means that production will not be greatly affected. There will be no shortage of your favorite iPhone if that’s what you care about the most.