Apple Places Indian iPhone Factory On Probation For Labor Violations

Apple Inc AAPL has placed the Foxconn Technology Group factory in Chennai, India under probation after conducting an investigation that revealed its workers were being subjected to poor working conditions.

What Happened: The factory was shut down in light of protests and would resume operations once "necessary improvements" are made, according to Bloomberg.

"We found that some of the remote dormitory accommodations and dining rooms being used for employees do not meet our requirements and we are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented," an Apple spokesperson told Bloomberg.

For its part, Foxconn has agreed to improve living conditions and would continue to pay its employees as it undergoes a strict restructuring, the publication reported.

Foxconn, Apple's biggest assembly partner, has faced similar issues in the past, especially in China. In 2010, the Taiwanese company made a raft of changes to its operating methods after a torrent of suicides highlighted the harsh living and working conditions its workers were being exposed to, according to Bloomberg.

The Cupertino-based company faced a similar issue exactly one year ago when it put its other Taiwanese supplier Wistron Corp on probation for similar violations. 

Price Action: Apple shares closed 0.58% lower at $179.29 on Tuesday.

 

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