Apple puts supplier Foxconn's India plant on notice; will it affect manufacturing of iPhones?
The facility, which employs around 17,000 people, was shut down on December 18. Apple and Foxconn did not specify when it might reopen.
Apple said it had put Foxconn's factory in southern India on probation after both businesses discovered that several distant dorms and eating rooms used by staff did not meet acceptable requirements. Apple did not elaborate on what it meant to be on probation. The current action follows earlier this month's demonstrations when more than 250 women who work at the Foxconn facility in Sriperumbudur town, near the southern city of Chennai, and reside in one of the dorms, were treated for food poisoning.
Analysts predict that the facility's shutdown, which produces iPhone 12 models and has begun trial production of the iPhone 13, would have little impact on Apple. However, manufacturing is long-term crucial for Apple as it seeks to reduce its reliance on China's supply chain amid trade tensions between Washington and Beijing.
The facility, which employs around 17,000 people, was shut down on December 18. Apple and Foxconn did not specify when it might reopen. On Wednesday, a Foxconn representative said that the company was revamping its local management team and taking urgent efforts to enhance facilities and that all employees would be paid. In contrast, the company made the required modifications to recommence operations. According to Reuters, more than 150 plant workers were hospitalised for food poisoning on December 18.
According to an Apple representative, the company deployed independent auditors to check conditions at the dorms "in light of recent complaints regarding food safety and housing arrangements at Foxconn Sriperumbudur."
Reacting to the same, Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, Skill Development, Electronics and Technology, called the decision a 'good one' and hopes 'Foxconn India will quickly set it right'.
According to Apple, some of the distant dormitory accommodations and dining rooms utilised by staff did not match corporate requirements. It was working with the supplier to guarantee a full set of corrective activities, adding that it will fulfil its stringent criteria before reopening the plant.