Apple puts Foxconn factory on probation
Apple has put its supplier Foxconn's unit near Chennai under probation, while the latter said on Wednesday that it is restructuring its local management team and improving facilities for the workers.
An Apple spokesperson said it had dispatched independent auditors to assess conditions at the dormitories "following recent concerns about food safety and accommodation conditions at Foxconn Sriperumbudur". The unit was closed on December 18 after protests erupted following the hospitalisation of 156 women due to food poisoning in the company hostel. Some of the protesting workers were arrested by the police and released later.
"We found that some of the remote dormitory accommodations and dining rooms being used for employees do not meet our requirements and we are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented," Apple spokesperson said. The unit will remain on probation until Apple is satisfied with the dining and dormitory standards provided by the Taiwanese contract manufacturer.
The Foxconn Technology Group said it was restructuring the local management. "We are restructuring our local management team and our management systems to ensure we can achieve and maintain the high standards that are needed," it said in a statement.
The company will resume operations once "necessary improvements" are made. It also said that all employees will continue to be paid while necessary improvements are undertaken before restarting operations. It will continue to provide support for staff as they return to work.
Almost 99 per cent of Foxconn's around 17,000 workers are women. They are largely contractual staff and they have been complaining about the lack of basic facilities at the hostel and the unit. Last year, another supplier of Apple, Wistron's unit in Bengaluru too was placed on probation following worker protests over non-payment of wages.
Foxconn's unit in Sriperumbudur makes iPhones and fire sticks. Earlier, the company had announced resumption of operations from December 30 with 1,000 workers.
However, after placing the unit on probation, the company has not specified the date of resumption.
A Reuters report quoting a senior government official said Foxconn has been answering queries from the state government on amenities provided to workers. "Once they get clearances from the government, workers will be inducted and the company will resume production," the official said.
Another official said the reopening of the Foxconn plant could be delayed until Monday.
The Tamil Nadu government said on Saturday that Foxconn had agreed to expand living areas, upgrade bathing facilities and provide drinking water, acceding to employees' demands, and will resume operations soon.
The company has grappled with labour issues in the past, particularly in China, where it makes most of the world's iPhones among other devices from laptops to tablets and gaming consoles for major global brands.