Apple gives formal notice to supplier Foxconn’s Indian plant after protests

Dec.29 (Reuters) – Apple (AAPL.O) said it placed its iPhone assembler Foxconn (2317.TW) factory in southern India on probation after the two companies discovered that some dormitories and remote dining rooms used for employees did not meet required standards. .

Apple did not elaborate on what it means to be on probation. When he placed the South Indian plant of another supplier, Wistron Corp (3231.TW), on probation after unrest last year, he said he would not assign any news business to the Taiwanese company until it sorted out the way workers were treated.

The latest action follows protests that erupted earlier this month after more than 250 women who work at the Foxconn factory in Sriperumbudur city, near the southern city of Chennai, live in one of the dormitories, had to be treated for food. poisoning.

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The plant, which employs some 17,000 people, was closed on December 18. Apple and Foxconn did not say when they expected it to reopen.

A Foxconn spokesperson said on Wednesday it is restructuring its local management team, taking immediate action to improve facilities and added that all employees will continue to be paid while it makes the necessary improvements to restart operations. .

More than 150 factory workers have been hospitalized with food poisoning, Reuters reported on December 18.

An Apple spokesperson said Wednesday it dispatched independent auditors to assess conditions in the dormitories “following recent concerns over food security and accommodation conditions at Foxconn Sriperumbudur.”

Apple said it discovered that some remote dormitories and dining rooms used for employees did not meet its requirements and that it was working with the supplier to ensure a full set of corrective measures, adding that it will ensure its standards strict rules are met before the establishment reopens.

Earlier this week, Reuters reported that Foxconn along with 11 of its contractors, including those providing food and living facilities, had been called for a meeting with the state government and that officials asked Foxconn to review the services provided to the workers, including back-up food in hostels, food and water.

The impact on Apple of the shutdown of the plant, which makes iPhone 12 models and has started trial production of the iPhone 13, is expected to be minimal, analysts say. But the plant is strategic for the long term as Apple tries to reduce its reliance on the Chinese supply chain amid trade tensions between Washington and Beijing.

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Reporting by Sayantani Ghosh, Sudarshan Varadhan in Chennai, Chandini Monappa in Bengaluru, Dawn Chmielewsk in Los Angeles and Stephen Nellis in San Francisco; Editing by Christian Schmollinger, Kenneth Maxwell and Raju Gopalakrishnan

Our Standards: Thomson Reuters Trust Principles.

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