Apple Puts Major Taiwanese Supplier Pegatron on Probation Over Labour Laws Violation

Pegatron mis-classified student workers and falsified paperwork to disguise the violations, Apple said.

Advertisement
By Reuters | Updated: 10 November 2020 14:56 IST
Highlights
  • Apple did not declare the terms of the probation
  • Its own investigations had found no evidence of forced or underage labour
  • Pegatron's shares closed down 2.1 percent on Monday

Apple said that Pegatron had now fired the executive with direct oversight of the programme

Apple has put its Taiwanese supplier Pegatron on probation after finding that the company violated Apple's supplier code of conduct by asking student employees to work night shifts or overtime and also take up work unrelated to their majors. Pegatron had mis-classified student workers and falsified paperwork to disguise the violations, and, in some cases, also breached the code by allowing students to perform work unrelated to their majors, the US technology giant said.

"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 programme," Apple said in a prepared statement. Pegatron is one of a handful of Taiwanese manufacturers on the island, alongside Foxconn, who dominate Apple's iPhone assembly chain.

Advertisement

"Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required," the statement added.

Apple did not declare the terms of the probation. Its own investigations had found no evidence of forced or underage labour, Apple said, adding that Pegatron had now fired the executive with direct oversight of the programme.

Advertisement

"The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms," Apple said. Pegatron's shares closed down 2.1 percent on Monday, underperforming a 1.2 percent rise in the broader Taipei market.

Pegatron said in a separate statement that student workers at its Shanghai and Kunshan campuses had been found working without complying with local rules and regulations. They had now been taken off the production lines and given "proper compensation", it said.

Advertisement

The statement from Pegatron, however, did not address the question how being put on probation by Apple might impact the company. Pegatron reported a TWD 19.3 billion (roughly Rs. 5,000 crores) profit in 2019, up 74 percent on the previous year.

Apple last month launched its next-generation iPhone 12, with faster 5G connectivity. Apple and its suppliers have been accused of poor labour practices in the past, but the US company has been trying to get a grip over such issues by releasing annual reviews of the iPhone supply chain.

Advertisement

In 2017, Apple and Foxconn said a small number of students were discovered working overtime in one of the latter's Chinese factories, violating local labour laws.

In July, the third major Taiwanese assembler of iPhones, Wistron, sold two smaller factories in China to Dongguan-based Luxshare, a fast-growing firm emblematic of China's rising home-grown suppliers which are gradually increasing rivalry with the Taiwanese giants.

© Thomson Reuters 2020
 


Which is the best TV under Rs. 25,000? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Apple, Pegatron, Wistron, Foxconn
Advertisement

Related Stories

Popular Mobile Brands
  1. Redmi Turbo 5 India Launch Date Revealed as Company Confirms Key Specs
  2. From iOS 27 to Revamped Siri, What to Expect from WWDC 2026
  3. Tecno Pova 8 to Launch in India With 8,000mAh Battery on This Day
  4. Xiaomi Pad 8 Price Increased: Here's How Much It Costs Now
  5. OnePlus Turbo 6X, OnePlus Turbo 6X Pro Key Specifications Teased
  1. Sahara Meteorite May Be Fragment of a Lost Moon-Sized World, Study Suggests
  2. OpenAI Introduces Smarter ChatGPT Memory, Adds Dreaming Architecture
  3. Tecno Pova 8 India Launch Date Announced; Battery Size, Design, Colour Options Teased
  4. Samsung Reportedly Starts Internal Testing of Android 17-Based One UI 9 for Galaxy S25 Series
  5. Bybit Lists Western Union’s USDPT Stablecoin for Trading and Transfers
  6. Xiaomi Pad 8 Price Hiked in India: Here’s How Much It Costs Now
  7. Instagram Reels Influencing Nearly Half of Purchase Decisions in India, Meta Study Claims
  8. OnePlus Turbo 6X, OnePlus Turbo 6X Pro Colour Options, Price Range, Key Specifications Teased
  9. Sattendru Maarudhu Vaanilai Now Streaming Online: Where to Watch Jai’s Romantic Thriller Movie
  10. Asics GEL-Kayano 33 Launched in India With New Stability Tech, FluidSupport System
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.