Apple Suspends Pegatron From Manufacturers List After Labour Violation Allegations

9-Nov-2020

Apple has suspended business operations with one of its iPhone manufacturers in China, Pegatron after finding that the company violated Apple's supplier code of conduct. According to a Bloomberg report, Pegatron was found violating the student workers' programme where it "misclassified" student workers and even allowed some to work late nights and overtime which is against the Cupertino, California-based tech giant's supplier regulations. As a part of the probation, Pegatron will not receive any new business from Apple until all the corrective actions are in place by the Taiwanese company, a statement by Apple accessed by Bloomberg stated. Although Pegatron is one of the handful partners that Apple relies on globally to assemble its flagship product, iPhone, its other suppliers like Foxconn or Hon Hai Precision Industry have been too found violating labour laws in the past. Currently, Apple is in the middle of producing four new iPhone 12 models and has been working with Pegatron to expand iPhone production outside of China, the report added. However, it is said that those efforts are unlikely to be impacted by Apple's probation on Pegatron. Apple has said that the company did not find any evidence of forced or underage labour; however, the tech giant discovered that the supplier falsified paperwork to hide violations. Apple notes that it will continue to strengthen its oversight mechanisms to ensure that supply chain workers are protected and treated with dignity and respect. "We have a rigorous review and approval process for any student worker program, which ensures the intern's work is related to their major and prohibits overtime or night shifts," the statement accessed by Bloomberg read. Meanwhile, Pegatron has reportedly fired the manager who oversaw the student worker programme at its Shanghai and Kunshan campuses in eastern China. The company claims that it took quick action and worked with an external firm to strengthen its procedures to ensure that local laws and Apple's code of conduct are met. Pegatron adds that the company has taken the student workers off production lines and provided proper compensation along with necessary support and care.