oppn parties Wistron Is Guilty Of Ignoring Signals

News Snippets

  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
India Commentary Wishes A Happy Republic Day To All Its Readers /////// India Commentary Wishes A Happy Basant Panchami And Saraswati Puja To All Its Readers
oppn parties
Wistron Is Guilty Of Ignoring Signals

By A Special Correspondent
First publised on 2020-12-21 06:03:51

It is unfortunate that Wistron allowed the delays in payment of wages to escalate into a full scale labour dispute, knowing full well that the one thing that workers cannot tolerate, world-wide, is repeated delays in clearing their wages. Wistron should have known that it was a test case of a foreign manufacturer in the production-linked incentive scheme of the government of India. It should also have kept in mind that since it was producing for brands such as Apple, Lenovo and Microsoft, all of which are very sensitive to how their vendors take care of their workers, it should have put extra emphasis on addressing the delay in payment of wages. But it allowed the problem to linger and snowball into an ugly confrontation. The action it has now taken, removing the vice-president in-charge of the business in India, is good but it must realize that more than persons, it might have been the disruption in cash flows that caused the problem.

For Wistron, this has meant that Apple has stopped further orders till it takes corrective action. Wistron, being a foreign company that has been working with major brands across the world, must know that all these brands are now very concerned about how their vendors comply with ESG (environment, social and governance) practices in the countries they operate. Both investors and consumers do not touch brands that do not factor in ESG. That is why the company will have to immediately reorient its labour policies to ensure that such an incident is not repeated.

For India, this incident might have two serious consequences. One, as India liberalizes its labour laws and allows fixed-time contract employment by companies, labour unions will show Wistron as what can go wrong in such a scenario. Secondly, as India pushes for Make in India and seeks foreign investment, violence such as the one at the Wistron factory in Bangalore will turn away investors. Hence, both the government and the company must move in fast to control the damage. 

Pic courtesy: Deccan Herald