In mid-December 2020, the Indian subsidiary of Taiwanese
contract manufacturer, Wistron downed shutters of its newest plant
in the state of Karnataka after a mob of factory workers vandalised
the plant. Wistron manufactures phones for Apple Inc. and was
projected as an important part of building Apple Inc.'s
footprint in India, and also servicing Apple's global supply
chain.
As an employer, Wistron had engaged a number of staff from third
party contractors and the staff alleged that ransacking of
Wistron's manufacturing plant was instigated primarily by
non-payment of wages and overtime wages, and wage cuts.
While investigations are underway, this incident has highlighted
the risks faced by companies, especially those with worldwide
operations and clientele, from violations attributable to suppliers
and vendors, and indeed risks faced by the suppliers from
down-stream vendors and contractors.
