Apple has suspended future business with Pegatron, a major partner for assembling iPhones and iPads, saying the Taiwanese manufacturer violated its labor rules.
“Several weeks ago, we discovered Pegatron — one of Apple’s suppliers in China — violated Apple’s Supplier Code of Conduct in its administration of a student work study program,” an Apple spokesperson told CNBC.
Apple said Pegatron misclassified student workers and falsified paperwork to help disguise violations of Apple’s code of conduct. Students were allowed to work nights and/or overtime and sometimes students worked on projects unrelated to their major, Apple told CNBC. Those students were ultimately compensated for their work and were returned back to home and school, the company said.
Apple said Pegatron employees went to extraordinary lengths to evade its oversight mechanisms and that Pegatron fired the executive in charge of the program. Apple won’t give the company any additional business until it corrects parts of the business that led to the violations.
MacDailyNews Note: Apple said it would not award Pegatron any new business until the company took corrective measures, and told The New York Times‘ Paul Mozur that a Pegatron executive in charge of the student employment program had already been fired. Importantly, the probation which will not affect current production of the iPhone 12 family.