Apple suspends new business with Pegatron due to labor violations — Apple World Today
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The tech giant said it discovered several weeks ago that the Taiwanese manufacturer misclassified student workers and allowed some to work nights and overtime in violation of Apple’s Supplier Code of Conduct. Employees then “went to extraordinary lengths” to cover up the violations, according to Bloomberg. It’s since placed its partner on probation until corrective action is completed, the U.S. company said in a statement.
Pegatron has been accused sporadically over the years for violating workers’ rights. For example, in 2016, a report from China Labor Watch, a labor rights watchdog and advocacy organization, says there are are continued workers’ rights violations at factories owned by the company.
It will be interesting to see if/when Apple resumes business with Pegatron. In September, it was reported that three of Apple’s top contract manufacturers — Foxconn, Wistron, and Pegatron — plan to invest a total of almost US$900 million in India in the next five years to tap into a new production-linked incentive plan.
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