Apple cut major supplier Pegatron from new contracts after revealing student labor violations at some of the Chinese-based Taiwan manufacturer’s facilities. Bloomberg reports that Apple discovered that Pegatron was falsifying papers to cover up Apple’s code violations against suppliers.
Pegatron is one of Apple’s largest supply chain partners, making a wide variety of products including some of the latest iPhone 12 models. However, the company is reportedly in a probationary period and will not be able to acquire any new business from Apple until the issue is resolved.
Apple said in a statement to Bloomberg: “We have a rigorous review and approval process for any student employee program, to ensure the intern̵7;s job is related to the major. and prohibit working overtime or night shift, ”Apple said in a statement to Bloomberg, noting that Pegatron had fired the program’s manager. “Pegatron misclassified the workforce as students in their program and forged papers to disguise violations of our Code, including allowing students to work at night and / or work overtime and in some cases perform work unrelated to their major. ”
“When we discovered this non-compliant activity, we immediately took the student workers off the production line and worked with our customers and third-party experts to make arrangements. they can return home or school with adequate compensation with all necessary support and attention, ”says Pegatron’s statement. However, at this point, it looks like Apple is still not convinced.
This is not the first time Pegatron’s student program has caught the eye. In 2013, China Labor Watch released a report accusing student workers of unpaid overtime at a Pegatron factory in Shanghai.