£ 437 crore loss, FIR against 7,000 people; Key updates

At the Wistron Pvt Ltd, iPhone maker, facility at its Kolar facility, a First Information Report (FIR) was recorded against 7,000 unknown persons, including 5,000 contract workers, related to violence and vandalism.

The unrest broke out over a wage dispute. An employee who spoke to Mint said the company cheated, and even attacked, workers over overtime payments and salaries.

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“Security guards attacked us while we were waiting in line to register our presence in the canteen,” said one employee, asking for anonymity.

Wistron is one of Apple’s worldwide contractual partners. The company manufactures iPhone 7 phones and second generation iPhone SE devices in India.

Important updates in the previous case:

Setback for Apple’s expansion plans

Apple Inc. efforts to expand manufacturing of its products in India have run into trouble following the violence at the Kolar plant.

The company planned to hire up to 25,000 employees by the end of 2021 to expand its operations in India. They currently employ 12,000 people, 1,200 of whom are permanent employees, while the rest are contract employees.

The conflict is part of a wider geopolitical challenge facing Apple, the world’s most valuable company with a market capitalization of $ 2 trillion. The Cupertino, California-based company has long had its iPhones and iPads manufactured in China by contractors such as Wistron and Hon Hai Precision Industry Co. However, political tensions between China and the US have increased the risk of dependence on a single production base.

Apple’s probe in the force

Apple Inc. has launched an investigation into violence against workers. “Apple is committed to ensuring that everyone in our supply chain is treated with dignity and respect. We have teams on site and immediately launched a detailed investigation into Wistron’s Narasapura plant in India, “Apple said in a statement on Monday.

The company sends additional team members and reviewers to the facility. “Our teams are in close contact with the local authorities and we offer our full support for their investigations,” he added.

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People leave the gate of Wistron near Bengaluru (AFP)

FIR against unknown persons

Up to 7,000 people have been booked at the Wistron facility in connection with violence and vandalism. In the FIR, the company stated that it suffered losses of over £437.7 crores during the violence on December 12th.

The property, office supplies, vehicle and other items were damaged according to the FIR recorded at the Vemagal Police Station in Kolar.

The Taiwan-based company said the protesters are not their own workers, suggesting they may have been hired by employment agencies, although it is not clear who is responsible for paying them.

The extent of the damage

Wistron Corporation has announced that it has suffered a loss £437.40 crore. A large number of workers allegedly committed arson, loot and violence over wage problems at the Narasapura manufacturing facility in Wistron on Saturday.

They damaged the building, damaged vehicles, set them on fire, damaged expensive equipment such as machines and computers.

In his complaint to the Vemagal Police Station, the company’s executive director, TD Prashanth, stated that office equipment, cell phones, manufacturing machinery and related devices have value £412.5 crore was lost.

Infrastructure worth it £10 crore, £Cars and golf carts worth 60 lakh, smartphones and other devices worth £1.5 crore was among those who suffered the damage, stolen or lost.

Company in shock

The managing director of Wistron India Sudipto Gupta said in a statement that the company was in deep shock from the events at its plant in Narasapura.

“We obey the law and support the authorities in their investigations. The safety and well-being of our team members are always our top priority,” Gupta said in a statement to the media.

Political parties are looking for a probe

Karnataka political parties sought a thorough investigation into the violence at Wistron’s work on Sunday when they raised concerns about its possible impact on the state’s investment-friendly image.

The state government has condemned the violence and has already promised the necessary measures. Leaders of the ruling BJP and the opposition congress described the incident as unfortunate and sought a detailed investigation.

“It is unfortunate that the Wistron manufacturing facility was violently attacked by excited workers near Kolar. At a time when many companies are moving from China to India, such attacks give the state a bad name. I call on CM BS Yediyurappa to order a probe into this incident, “tweeted BJP General Secretary CT Ravi.

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