Apple Incorporated Suspends New Business with Key Provider Pegatron on Labor Contraventions

The American multinational technology company ‘Apple Inc.’ has suspended new business with key supplier Pegatron Corporation after discovering labor violations at a student’s workers program, taking strong action to clean up its Chinese-focused manufacturing chain.

In a statement, Apple said that Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code including allowing students to work nights and overtime and in some cases to perform work unrelated to their major.

Moreover, Apple has placed Pegatron on probation until it finishes taking corrective action, says Bloomberg.

The Cupertino California-based technology giant ‘Apple’ said that it has discovered several weeks ago that the Taiwanese iPhone makers misclassified student workers and allowed some to work overnights and overtime in contravention of Apple’s supplier code of conduct.

Furthermore, Pegatron keeps pace with Foxconn, another Taiwanese company which is an integral part of Apple’s global supply chain and has been targeted for criticism by labor activists over the years. Both the conglomerate Pegatron and Foxconn are headquartered in Taiwan but have factories in China and other countries. However, workers have blamed both the companies for forcing them to work excessively for long hours.

Meanwhile, Apple is in the middle of manufacturing four new iPhone models with 5G and has been working with Pegatron to scale-up iPhone production outside of China but those efforts are unlikely to be impacted by this suspension The company also said it did not find evidence of forced or undergo labor but discovered the supplier falsified paperwork to hide violations or contraventions.

Lastly, the Pegatron said the defloration took place at its shanghai and Kunshan campuses in eastern china and that the students working in night-shifts, over-time, and in positions unrelated to their majors was not in observance with local norms and standards.