Wistron estimates USD7.11 million loss from its riot-hit Kolar plant


Bengaluru, Dec 15 (IANS): Apples iPhone maker Wistron Corporation has estimated the damage from violence at its Narsapura plant near Bengaluru on the last weekend to be around $7.11 million (Rs 52.4 crore).

"Unlike earlier reports stated, the violence did not cause any material damage to major manufacturing equipment and warehouses, with preliminary estimates of damages to be up to new Taiwan dollar (NTD) 100-200 million ($7.11 million)," said Wistron in a regulatory filing on the Taiwan Stock Exchange on Tuesday.

Noting that the company was assessing the damage in the facility, the filing said its India subsidiary was co-working with the government authorities and police officials on the investigation into the incident on December 12 in the Narasapura industrial area at Kolar, 55km east of this tech hub in southern Karnataka.

"We are assessing the extent of the damages in various areas of the facility," added the filing.

Wistron Infocomm Manufacturing (India) Ltd chief executive T.D. Prashant in a complaint to the local police on Sunday said that expensive office equipment, mobile phones and assembly equipment valued at Rs 437 crore were destroyed when a section of the employees went on a rampage for alleged delay in payments and deductions in their salary.

The local police arrested about 150 employees of Wistron for the alleged violent incident in the facility at Narasapura.

Wistron is one of the third-party makers of iconic iPhone for Apple and assembles select models in India. It also has an assembling plant at Peenya industrial estate in Bengaluru north, rolling out the iPhone SE model since 2017.

"About 5,000 contract labourers and 2,000 unidentified people vandalised the factory," Prashant alleged in his complaint to the Narasapura police.

The company has invested about Rs 2,000 crore in the Naraspura plant to roll out about 4 lakh iPhone 7 handsets per annum along with the second-generation iPhone SE devices.

Of about 10,000 workers, around 1,340 are permanent and 8,500 are on contract, hired by six firms.

All India Trade Union Congress (AITUC) General Secretary M.D. Harigovind told IANS on Monday that the violence at Wistron was due to gross exploitation of workers and sweatshop conditions in the factory, where the world's most expensive mobile phones are assembled.

"Though the workers were hired at a salary of Rs 16,000 per month for an 8-hour shift, they were short-changed and paid only Rs 12,000 but made to work for four more hours without overtime payment," claimed Harigovind.

According to district labour officer Srikanth Patil, majority of the employees, including women, are locals, with diploma or ITI certificate in electronics.

Patil said the simmering discontent over delay in payment of wages, extra working hours without compensation, disputes over attendance records and stifling working conditions outraged the workers, forcing them to resort to violence due to pent-up anger against the management.

  

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Comment on this article

  • Rajen Gopi, Kolkata

    Wed, Dec 16 2020

    Take care of your employees and they will take care of you.

    DisAgree Agree Reply Report Abuse

  • Charles Pinto, Mangalore/ Mumbai

    Wed, Dec 16 2020

    Sorry to say, we Indians are the best employees, when we work overseas. But in our own country, we are of the worst nature.

    Only stick is the medicine. Also there is lots of unfair labor practices, which encourage these so called trade unions to play their politics.
    Only God can help our country. Please do not blame the Government. The people are responsible for their deeds.

    DisAgree [4] Agree [3] Reply Report Abuse

  • Shivaprasad K U, Hospet

    Wed, Dec 16 2020

    This is the main issue in India, gross exploitation......

    DisAgree Agree [5] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Wed, Dec 16 2020

    Very true, majority of work force in these cos is contractual in which the contractor tòo has his cut and the employees only get production based salaries without any facilities, but this is inevitable in future as competition and unemployment increases!
    Most Indian cos too are getting rid of old employees through VRS schemes so they can employ young staff with low salaries, most of them contractual to cut on fixed costs!
    Tata Motors has recently come out with VRS scheme to cut down on fixed costs as the automobile industry is facing fierce competition!

    DisAgree Agree [3] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Wed, Dec 16 2020

    Why Indian cos are not into such contract manufacturing instead of inviting foreign cos when we boast of Atmnirbar Bharat?
    It may be because of wafer thin profit margins due to intense competition!

    DisAgree Agree Reply Report Abuse

  • Kiran Dsouza, Bangalore

    Wed, Dec 16 2020

    Democratic countries cannot prosper due to this reason,
    Finally the word "Democracy" means "Destruction", in the name of protests.
    This is the only reason why many companies prefer China over any other country in the world.
    In a country like India, it's a herculean task to setup any type of Industry because they have to face one or the other protests from the beginning. Land acquisition, infrastructure another problem finally when there is full fledged setup running this type of protests companies has to face.
    When there is a issue it should be sorted out peacefully, not by destruction. What will the future of thousands of employees now?

    DisAgree [1] Agree [4] Reply Report Abuse

  • Vincent D'Souza, Belthangady

    Tue, Dec 15 2020

    This incident has shown black flags to future potential investors in Karnataka?

    DisAgree [2] Agree [18] Reply Report Abuse

  • Suresh, USA

    Tue, Dec 15 2020

    It will be cheaper for Wistron as a Taiwanese owned company to pack its bags and leave India and manufacture this phone is Cambodia or Vietnam.

    DisAgree [1] Agree [25] Reply Report Abuse

  • Kudla, Kudla

    Tue, Dec 15 2020

    Very nice... if u had paid their hard earned salary on right time , you wouldn’t have suffered this much loss... anyway congratulations

    DisAgree [11] Agree [12] Reply Report Abuse

  • Al Dsouza, Canada

    Wed, Dec 16 2020

    Congratulations to whom? Once all of them lose their jobs due to such harshness towards their employer will teach these employees life lessons. What will benifits them damage the facilities.

    This will only damage the reputation of India and many businesses never will start their businesses in India due to law and order issues. As it is international communities are very cautiously watching Indian democracy and religious treatment towards minorities and women. Please practice peace and teach society to behave than encourage violence.

    DisAgree [1] Agree [8] Reply Report Abuse

  • kudla, mluru

    Wed, Dec 16 2020

    Congrats to Company...
    We Indians are not slaves of foreign companies.. we don't say don't come and invest , they are welcome always untill treat us with dignity and respect.

    DisAgree [1] Agree [1] Reply Report Abuse

  • kudla, kudla

    Wed, Dec 16 2020

    Gandhi ji said " keep your windows open and door closed, let the breeze from around the world come but let not blown off your feet".

    DisAgree Agree [1] Report Abuse

  • Sunil D'Souza, Mangalore

    Wed, Dec 16 2020

    U really dont know what u r talking. This hampers foreign investment opportunities and without foreign funds Nothing great can happen because the world business ticks on dollars. Sitting in your cozy kudla u are like a frong in the well.

    DisAgree Agree [1] Report Abuse

  • kudla, mluru

    Sat, Dec 19 2020

    OYI read this FYI.
    sitting somwhere in the world and talking like boss doesnt make you wise.




    https://www.thehindu.com/news/national/karnataka/wistron-acknowledges-its-mistakes/article33371538.ece?homepage=true

    DisAgree Agree Report Abuse

  • Dylan, Mangalore

    Tue, Dec 15 2020

    The state of affairs in BJP ruled state.

    DisAgree [9] Agree [13] Reply Report Abuse

  • Alwyn, Mangalore

    Tue, Dec 15 2020

    Wistron estimates USD7.11 million loss from its riot-hit Kolar plant
    7,110,000 United States Dollar equals 522,985,293.00 Indian Rupee.

    Now Indian that too all middle class and poor people must aware that this money will be paid by the insurance company and we will be charged additional taxes or no development.

    DisAgree [3] Agree [17] Reply Report Abuse

  • Mr Kamath, Mangalore

    Tue, Dec 15 2020

    Finally salary paid and job gone.. Good job company take that money from these people's salary only..

    DisAgree [5] Agree [8] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Tue, Dec 15 2020

    Sir,
    There would have been some major issue which led to this deadly carnage?

    DisAgree [2] Agree [9] Reply Report Abuse

  • Mr Kamath, Mangalore

    Tue, Dec 15 2020

    That is also true the whole story is not out but now the future of 100 employees is unknown..

    DisAgree [1] Agree [14] Reply Report Abuse


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