(Bloomberg) — Foxconn Technology Group pledged to revamp its management and operations in India after a labor protest forced the shutdown of a key smartphone plant in southern India.
Foxconn, which makes phones for the likes of Apple Inc. and Xiaomi Corp., apologized for lapses in living standards that prompted some of its factory workers to protest, promising to implement changes to its management and health services. The factory will resume operations once “necessary improvements” are made.
“We have been investigating recent issues at our Sriperumbudur facility in Tamil Nadu and have found that some offsite dormitory facilities do not meet the required standards,” the company said in a texted statement. “We are very sorry for the issue our employees experienced and are taking immediate steps to enhance the facilities and services we provide.”
Foxconn to Restart Indian Factory After Protest, Government Says
Foxconn is restructuring its local management team and systems and will continue paying all employees during the downtime, the company said without elaborating. The Tamil Nadu government said on Saturday that Foxconn had agreed to expand living areas, upgrade bathing facilities and provide drinking water, acceding to employees’ demands, and will resume operations soon.
“Following recent concerns about food safety and accommodation conditions at Foxconn Sriperumbudur, we dispatched independent auditors to undertake additional detailed assessments,” an Apple spokesperson said. “We found that some of the remote dormitory accommodations and dining rooms being used for employees do not meet our requirements and we are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented.”
Apple has placed Foxconn’s Sriperumbudur facility on probation until it is satisfied its standards have been met before the factory reopens. Foxconn did not specify when it intends to restart operations at the plant, which produces iPhone 12 handsets among other gadgets, according to local media reports.
The company has grappled with labor issues in the past, particularly in China, where it makes most of the world’s iPhones among other devices from laptops to tablets and gaming consoles for major global brands.
(Updates with Apple comment in fifth paragraph)
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