oppn parties Wistron Is Guilty Of Ignoring Signals

News Snippets

  • After both candidates got 34 votes in HP. Congress' Abhishek Singhvi lost in the draw of lots as the BJP candidate was declared winner
  • ED issues 8th summons to Delhi CM Arvind Kejriwal in the excise policy scam case
  • Prime Minister Modi introduced the three IAF group captains - Prashanth Nai, Ajit Kirshnan and Angad Pratap - and Wing Commander Shubhangshu Shukla, who have been shortlisted for the first manned space mission of ISRO
  • Centre appointed former SC judge A M Khanwilkar as the new Lokpal. It also named three judicial and three non-judicial members of the Lokpal panel
  • A 9-judge Supreme Court bench started hearings on whether states are entitled to tax mineral-rich land in their respective states
  • Taking note of the huge disparity in charges in government and private hospitals for most treatment procedures, the Supreme Court asked the Centre to strictly enforce the CGHS rates or warned that the court would have to step in
  • Calcutta HC ruled that regardless of a woman employee being regualr or on contract and whether her contract permitted maternity leave, employers cannot deny childbirth and maternity leave to any women employee as it 'seeks to create a class within a class which is not permissible'
  • Sebi asks MF companies to disclose more risks associated with their small and mid cap funds
  • Vodafone Idea board approves Rs 45000cr funding infusion
  • NCLT clears Hinduja acquisition of Reliance Capital at Rs 9650cr upfront payment within 90 days of approval of resolution plan
  • Stocks returned to winning ways on Tuesday: Sensex gained 305 points to 73095 and Nifty 76 points to 22198
  • Commonwealth Chess championships: Mitrabha Guha wins title by scoring 7.5 points in 9 rounds
  • WPL: RCB beat Gujarat Giants by 8 wickets
  • Bengal starts paying MNREGA workers out of own funds as Central disbursement is stopped due to alleged 'discrepancies' in accounts
  • ISC chemistry paper postponed to March 21 just hours before start of exam due to "unforeseen circumstances"
Cross-voting in Rajya Sabha elections enables BJP to snatch seats in UP & Himachal /////// Congress government in Himachal in trouble as some MLAs revolt
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