Apple began focusing on the Indian market by setting up an iPhone assembling plant in the state of Karnataka. The company also launched its online store in the country earlier this year. However, not everything is looking good for Apple as workers at its contract manufacturer Wistron took to violence for non-payment of wages.
Wistron has faced major losses as the workers reportedly smashed vehicles, manufacturing equipment, and stole iPhones. Apple has launched an investigation into this matter along with Wistron having filed multiple FIRs against some workers. The police have reportedly arrested around 156 people that worked at Wistron.
Revised estimates suggests lower loss
The Taiwanese manufacturer Wistron initially estimated the damages were around Rs 437 crores. However, the estimate has changed since then and the new estimate suggests a loss of around Rs 52 crores. Wistron reported to the Taiwan Stock Exchange about the losses and said that no major damage was done to the manufacturing equipment.
It’s unclear as to why the initial estimate of loss was reported so high, compared to the fresh report. A video surfaced on the internet (Twitter) on the same day, the violence broke out at the assembly plant. The video showed a lot of cars turned upside down and workers hitting window panes. However, the video does not show any damage to the insides of the warehouse.
Apple has also launched an investigation into the matter of workers having not been paid by Wistron, in addition to the investigation of the wreck. The estimates of loss could very well change by the time all the investigations wrap up.
The labour minister of Karnataka, Shivram Hebbar said, “It was the company that filed an FIR and it is only the company that can say why it filed a revised loss of $7 million or Rs 50 crore. But whatever may be the loss, the violence resorted to by the agitators cannot be tolerated or supported.”