Apple Suspends New Business With Pegatron Following Labor Violations [Report]

Apple has suspended new business with supplier Pegatron after discovering labor violations involving students, reports Bloomberg.

The company misclassified student workers, allowing them to work nights and overtime in violation of Apple's Supplier Code of Conduct.

“Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major,” Apple said in a statement. “The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms.”


“We are working on the corrective actions and are confident that we will complete it soon,” a Pegatron spokeswoman said Monday. “Upon discovery of this non-compliant activity, we immediately took the student workers off production lines and worked with our customer and third-party experts to make appropriate arrangements for them to return to their homes or schools with proper compensation alongside all necessary support and care.”

It's unlikely that Pegatron's current iPhone business will be affected; however, it could lose future orders to Luxshare.

More details in the full report linked below.

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