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Wistron Corp iPhone Supplier Lost $7.12 Million in India as Workers Protested Over Unpaid Wages

Wistron Corp iPhone Supplier Lost $7.12 Million
Wistron Corp iPhone Supplier Lost $7.12 Million. Photo Credit: Getty Image

The ransacking of iPhone manufacturing facility in India caused up to $200 million or $7.12 million in damage through production facilities were not as badly hit as previously reported by the media according to Taiwan-based operator Wistron Corp.

Thousands of contract workers gathered on the grounds of Wistron site on the outskirts of India’s tech hub of Bangalore on Saturday demanding unpaid wages and better working hours.

The crowd turned violent as police arrived according to videos from the scene which showed people armed with rods and sticks smashing equipment and vandalizing cars.

Initially the damage estimate was around $60 million leading to Wistron shares to fell around 2.5% in early Asia trading hours, under-performing Taiwan’s broader stock market.

Wistron said that the company had cooperated with the relevant authorities and the police investigation and continues to negotiate with the insurance company.

Meanwhile Apple Inc. said on Monday that it was sending staff and auditors to the site to investigate whether Wistron had flouted supplier guidelines and will also cooperate with police in their investigation.

The incident is a big blow to Indian Prime Minister Narendra Modi’s government which has been looking to increase manufacturing businesses and investment in the country.

Police arrested 149 people over the violence while a search was on to identify and arrest more perpetrators as investigation continues.

According to India’s head of labor group the violence was a direct result of the brutal exploitation of workers and sweatshop like conditions.

iPhone had become successful after 4 years of manufacturing in India and efforts were under way to make normal operation begins.

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Yosam Mukundane Is a political and socio-economic policy analyst at Forsige and a reporter covering Africa and Asia from Uganda.

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