Wistron Corporation is one of Apple’s global manufacturing contractors. Recently, the manufacturing plant of Wistron in Bangalore, India was under attack reportedly over the matter of wages. This attack comes at a time when India is inviting global players to produce in India and many companies are looking to shift their base out of China. Let’s take a look at the matter in detail.
Crux of the Matter
Wistron Corporation is one of Apple’s global manufacturing contractors. In India, it manufactures iPhone 7 handsets and second-generation iPhone SE devices. Wistron Corporation headquarter is situated in Taiwan.
Violence At Plant
On 12 December, workers at Wistron Corp.’s manufacturing unit near Bengaluru turned violent over the issue of the wage dispute. “The company was defrauding workers on overtime payments, salary and had even resorted to assault,” said a company worker. The company has registered an FIR against 7,000 unknown people on charges of violence and vandalism.
Police FIR report says that the company suffered damage worth over ₹400-500 crores. However, as per the report submitted to Taiwan Stock Exchanges by the company revised its estimated damage to ₹25-50 crores. Attackers damaged the company’s buildings & vehicles by setting them on fire, damaged costly equipment including machines and computers. Wistron also said that it was likely that the vandalism was carried out by outsiders hired by employment agencies
Apple is dedicated to ensuring everyone in our supply chain is treated with dignity and respect. We have teams on the ground and immediately launched a detailed investigation at Wistron’s Narasapura facility in India.Apple on Wistron Plant Attack in India
What Global Times Said About the Incident?
Business and academic circles hold high hopes for growth on the back of India’s cheap labor, but now it seems far from certain that low labor cost will eventually translate into manufacturing advantage in India. Instead, the rising wealth inequality in India is pushing a huge pool of cheap labor to the verge of social conflict and violence, damaging the country’s manufacturing sector and ruining its reputation.Global Times, China on Wistron Plant Attack in India
Who Said What In India?
It is unfortunate that Wistron manufacturing plant was violently attacked by agitating workers near Kolar. At a time when many companies are shifting base from China to India, such attacks give a bad name for the State. I request CM B S Yediyurappa to order a probe into this incident.C T RAVI, BJP National General Secretary
Help To Restart Operations
This is an unfortunate incident, and we are in touch with the company and the Union government and are doing all we can to help restart the factory within the next 10-15 days.Shivaram Hebbar
Read about iPhone’s latest model here: Apple IPhone 12: Most Powerful Phone Yet?
- Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Lower cost and increased corporate profitability are often the motivation.
- Global labour arbitrage is an economic phenomenon where, as a result of the removal of or disintegration of barriers to international trade, jobs move to nations where labour and the cost of doing business is inexpensive. Often, a prosperous nation will remove its barriers to international trade, integrating its labour market with those of nations with a lower cost of labour.
- Wistron Corporation was the manufacturing arm of Acer Inc. before being spun off in 2000. Wistron employs over 80,000 people worldwide. As an ODM (original design manufacturer) Wistron designs and manufactures products for other companies to sell under their own brand name.