Apple places Foxconn’s Sriperumbudur facility on probation

Apple Inc has placed its supplier Foxconn’s factory in Tamil Nadu on “probation” after the parties found that some offsite dormitory facilities for employees did not meet the required standards.

The Taiwanese supplier, whose Sriperumbudur plant assembles high-end phones such as iPhone 11 and 12, has also decided to restructure its management team.

The news comes at a time India is pulling out all the stops to convince foreign firms to set up their factories in the country and laying the foundation to become a global manufacturing hub.

Also Read | Foxconn’s iPhone plant in TN to resume operations

Production at the Foxconn campus came to a halt on December 18 following protests by hundreds of workers demanding quality food. About 159 of their colleagues were hospitalised after they ate at a hostel managed by the firm.

An inspection by Apple’s independent auditors of facilities found some of the remote dormitory accommodations and dining rooms being used by employees did not meet its requirements.

“We are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented,” an Apple spokesperson said, adding that it would ensure its strict standards are met before the facility reopens.

Local sources originally expected the factory to reopen on December 29 but they now see work resuming only after a few more days.

All employees will continue to be paid while the firm makes necessary improvements before restarting the operations, A Foxconn spokesperson told DH.

“We are very sorry for the issue our employees experienced and are taking immediate steps to enhance the facilities and services we provide at the remote dormitory accommodations,” the spokesperson added.

Also Read | Foxconn to restructure management at Tamil Nadu iPhone plant

Foxconn’s plants in Sriperumbudur manufacture mobiles phones and other electronic devices, including Amazon firestick. The Taiwanese firm has expanded its facility more than once and had in 2020 pledged to invest over Rs 7,000 crore in enhancing capacity at its plants there.

Last week, the Tamil Nadu government said it had advised Foxconn to improve the working and living conditions of contract employees. The iPhone assembler has assured the state government that it would urge its contractors to provide quality food to 15,000 employees working with the company.

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