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Wednesday, December 16, 2020

Losses from Wistron violence drastically downgraded from Rs 437 cr to Rs 52 cr. Here's why

Violence
A senior official with the Industries Department confirmed to TNM that the loss was based on an improper assessment.
Security guard checking people near gate, Wistron Corp building in the distance with vans and trucks parked in front
Wistron Corp significantly pared down its projected losses from the violence at its Narasapura plant on Tuesday, bringing it down from Rs 437 crore to Rs 26-52 crore. In its police complaint in Kolar, Wistron had put its losses at Rs 437 crore, which is New Taiwan dollar (NTD) 1.67 billion. However, in a filing with the Taiwanese stock exchange on Tuesday, Wistron said its preliminary estimates were NTD 100 to 200 million (Rs 26,13,43,509.70 - Rs 52,26,87,019.40) “Regarding the damage to our Narasapura facility in India, the company is assessing the extent of the damages in various areas of the facility’s campus. Unlike earlier reports stated, the violence did not cause any material damage to major manufacturing equipment and warehouses, with preliminary estimates of damages in the range of NTD 100 to 200 million,” Wistron said in its filing.  “Wistron is co-working with related government authorities and police officials regarding investigation of this incident as well as negotiating with Insurance companies,” it added.  Wistron Infocomm Manufacturing (India) Ltd chief executive TD Prashant in a complaint to the police on Sunday said that expensive office equipment, mobile phones and assembly equipment valued at Rs 437 crore. In the complaint, he stated that office equipment, mobile phones, production machinery and related gadgets worth Rs 412.5 crore was lost. Infrastructure worth Rs 10 crore, Rs 60 lakh worth cars and golf carts, smartphones and other gadgets worth Rs 1.5 crore were among those which suffered damage, stolen or lost. A senior official with the Industries Department confirmed to TNM that the loss was based on an improper assessment.  But what caused the drastic turnaround of reducing the quantum of loss caused by the violence? Here are the possible reasons:  Apple investigation:  Wistron assembles the iPhone 7 in Bengaluru and the Kolar facility assembles the latest version of the iPhone SE. Foxconn, Wistron and Pegatron were the top three suppliers of Apple devices in India.  Apple has a strict supplier code of conduct and follows up on any reports of violations. In November, Apple Inc had suspended new business with Pegatron after labour violations were reported. In 2019, it interviewed more than 52,000 supplier employees as part of its supplier assessments. Apple, in its supplier code of conduct, states that suppliers must meet all legal requirements relating to wages and benefits, including paying accurate wages in a timely manner. “In addition, the use of wage deductions as a form of disciplinary measure is prohibited. All use of temporary and outsourced labour shall be within the limits of the local law," it adds. Wistron, like Pegatron, could also stand to lose out on its business with Apple.  "Apple is dedicated to ensuring everyone in our supply chain is treated with dignity and respect. We have teams on the ground and immediately launched a detailed investigation at Wistron's Narasapura facility in India. We are also dispatching additional Apple team members and auditors to the facility," Apple said in a statement. The state government and insurance The state government dispatched teams to the site, and at least one of these teams, sources said, accepted the company’s initial assessment of its losses at Rs 437 crore. It is important to note that Wistron is one of the largest investments in Karnataka, and it has been on the side of the company and has been sending a message that it is still a viable investment destination.  However, sources added that Wistron’s insurers did not agree with the assessment, and argued it to be far lesser. Wistron is currently facing an enquiry from the labour department over allegations of non-payment of wages. Moreover, a report submitted by three officers of the Director of Companies on December 13 says that there was a difference in the payment that the company did to contractors and the company has agreed to rectify it. It also added that the housekeeping staff were not paid and that contract employees were paid only by the 12th of every month. With inputs from PTI


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Bengaluru engineering student allegedly sexually assaults classmate at party, arrested

Crime
The police arrested the 22-year-old from his residence in Rajarajeshwari Nagar on Wednesday.
Silhouette of a woman sitting near a window
Representation photo
The Bengaluru Police on Wednesday arrested a 22-year-old engineering college student for allegedly sexually assaulting his classmate at a house party. The Rajarajeshwari Nagar police arrested Tushar for allegedly sexually assaulting his classmate after a house party at his residence in the city. On the evening of December 9, Tushar allegedly invited three of his friends — two men and one woman to his house in RR Nagar’s Ideal Homes Layout. The woman, who is also 22-years old, reached his residence after her lab class.  “He had asked us to bring alcohol. We bought our own alcohol,” the woman said in her complaint. The woman, a resident of a paying guest, said that she informed Tushar that she would head back to her place after the party. The party is said to have concluded at around 1 am. “I was booking a cab but Tushar told me it is not safe to go home at this time of the night and asked me to stay back,” she said in her complaint. While two other men slept in the living room, Tushar and the woman slept in his bedroom.  At around 3.30 am, she woke up to Tushar allegedly touching her inappropriately. She said that she pushed him away and demanded that he stop. “He did not stop. He came onto me forcefully and touched me inappropriately while restraining my arms,” the woman said in her complaint on December 10.  She broke free of his hold on her and ran out of the apartment, she said. “I called one of my friends, who came and picked me up,” she added. On the morning of December 10, she filed a complaint with the Rajarajeshwari Nagar Police. While the police went to arrest Tushar on the afternoon of December 10, he was allegedly not at home.  “He came back to his house today (Wednesday) and we arrested him,” the police said. Tushar has been booked under sections 354 (assault or criminal force on a woman with intent to outrage her modesty) and 354A (sexual harassment) of the Indian Penal Code (IPC). 


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Karnataka govt school students to return to classes as Vidyagama scheme restarts

Education
This means that classes will resume for government school students, who unlike their counterparts in private schools, have not had online classes this year.
School children, Vidyagama
PTI : Image for representation
More than two months after it was suspended, the Karnataka government is set to restart the Vidyagama scheme for government school students asking teachers to take classes in the school premises. The classes will be held in a new format with added safety measures which will see students divided into smaller groups for the classes. This means that classes will resume for government school students, who unlike their counterparts in private schools, have not had online classes this year. S Suresh Kumar, Minister for Primary and Secondary Education, confirmed that students, with approval from parents, can come to the school premises to attend Vidyagama classes in small groups of 15-20 students. They will have to maintain distance and wear masks. The classes will be held in turns with three classes of 45 minutes each in the morning and afternoon. They will begin imminently once the plans are in place, Suresh Kumar said. The exact date for the commencement of classes is yet to be announced. Students studying in class 10 will have classes in the first shift everyday. The guidelines released by the Karnataka government also state that classes for students studying in classes 8 and 9 would be conducted on alternate days from 2 pm to 4 :30 pm. For classes 1 to 5, classes will be on alternate days. The state government stopped the Vidyagama scheme, a continuous learning programme which involved teachers taking classes in community spaces, in October after reports of students and teachers contracting COVID-19. However, the absence of classes adversely affected students who do not have access to internet or smartphones and laptops since teachers were keen to continue the education of students by sending instructions over WhatsApp. In addition, the Vidyagama scheme was criticised after reports emerged that menstruating girls and Dalits were excluded from the scheme in few places where the classes were being held in temples. This led to a demand from activists in Karnataka to restart the Vidyagama scheme in the school premises itself. Government school students have had classes telecast on DD Chandana for the past month and these classes will continue, Suresh Kumar said.  Read: Activists urge Karnataka to restart Vidyagama scheme for government students


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Wistron plant violence not a reflection of India or its culture: Industry body ICEA

Wistron Violence
The India Cellular and Electronics Association said it fully stands by Wistron and will work closely with the government and security agencies to ensure such an incident isn’t repeated.
The India Cellular and Electronics Association said it fully stands by Wistron
Industry body ICEA on Tuesday condemned the violence that took place at Apple's contract manufacturing firm Wistron's facility in Karnataka and said the incident is neither a reflection of India as a country nor its culture. Workers at Wistron Corporation's manufacturing facility in the Narasapura Industrial Area at the Kolar district near Bengaluru went on rampage on Saturday over non-payment of their wages. In a letter to Vincent Lee, vice-president (innovation business group) of Wistron Infocomm Manufacturing India, the India Cellular and Electronics Association said it fully stands by Wistron and is committed to working closely with the central government, the state government and security agencies to ensure that such an incident is never repeated. "We want to assure you that what has occurred at the Wistron factory is neither a reflection of India as a country, nor our culture. We believe in Vasudhaiva Kutumbakam (the world is a family) and the concept of Atithi Devo Bhava (the guest is equivalent to God). "We have the highest respect for Wistron and the work it is undertaking at an unprecedented speed to expand its operations in India," Mohindroo said. Wistron is one of the 16 entities to have received approval for incentives under the government's production-linked incentive plan. Currently, iPhone XR and iPhone 11 are being assembled by Foxconn in Chennai and iPhone 7 by Wistron in Bengaluru. The Kolar facility assembles the latest version of the iPhone SE. "Wistron is a flagship project for India's electronics manufacturing and remains a top priority installation whose safety and security needs to be guaranteed under all circumstances," Mohindro said. Wistron said a large number of employees allegedly carried out arson, loot and violence at its Narasapura manufacturing plant damaging the building and vehicles, and damaged equipment including machines and computers. The police have so far arrested 149 people and detained a few others. "While we understand that in any new factory, there are HR-related issues and scope for process improvement as well as screening of employees. None of it justifies acts of vandalism and stealing. There are several peaceful means by which the employees can register their complaints, if any," Mohindroo said. Besides the iPhone, Wistron also manufactures IT products for Lenovo and Microsoft, among others. Mohindroo said the ICEA is in touch with Wistron India MD Sudipto Gupta and will put together an elaborate plan not only to ensure all support from the government with regard to safety and security but also to assist with resumption of operations at the earliest possible date. Apple in a statement had said it is undertaking a detailed investigation following the violent incident at its supplier Wistron's Narasapura facility in Karnataka. Apple, in its supplier code of conduct, states that suppliers must meet all legal requirements related to wages and benefits, including paying accurate wages in a timely manner. In November, Apple Inc suspended new business with one of its suppliers, Pegatron Corp, after labour violations were reported. Also read: Wistron iPhone plant violence: Workers say months of pent-up anger behind outburst


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K’taka Legislative Council ruckus: CM wants Prathapchandra Shetty out, Cong hits back

Politics
The statements came on a day a ruckus broke out in the Legislative Council and the Deputy Chairman was manhandled.
Legislative Council
Visibly angry over the deputy chairman of the Karnataka Legislative Council SL Dharme Gowda being manhandled by the members in the Upper House, Karnataka Chief Minister BS Yediyurappa on Tuesday insisted that the Council Chairman Pratapchandra Shetty must "resign immediately" as he does not enjoy the support of the majority in the House. Speaking to reporters in Bengaluru on Tuesday, Yediyurappa blamed the Congress for the incident. "None had dared to drag or push or shove those occupied in the chair. This speaks volumes about the Congress Culture. The Chairman (Shetty) should at least resign now from his post, as he lacks the confidence of the majority," he said. He added that with JD(S) coming out in the open there is no ambiguity over the fact that the BJP has the required numbers. "It is now very clear that BJP has numbers and Shetty does not have numbers, so he has no option but to resign," he said. The Congress, on its part, maintained that the BJP-JD(S) tried to begin the session even before the long bell went off by having the Deputy Chairman on the seat. "This shows that the BJP has no respect or faith towards the Constitution and the system of democracy," Congress leader Siddaramaiah countered. He questioned why the BJP-JD(S) took steps like closing the entrance of the House through which only the Chairman is allowed to enter. "What is the need for such a move? Besides this, even before the House bell went off, why was the deputy chairman allowed to be seated on the chair? These two questions will keep haunting them," he asked. He described that this was nothing but a “murder of democracy” and the BJP is proving again and again that they are firm believers of parliamentary democratic set-up. Later in the day, a joint delegation of legislators from BJP and JD(S) met governor Vajubhai Vala to lodge a formal complaint on the matter. Ministers Lakshman Savadi, Basavaraj Bommai, R Ashok, JC Madhuswamy, and MLCs Ramesh Gowda, Basavaraj Horatti and Puttana were among those who met the Governor and demanded Chairman K Prathapchandra Shetty to step down from the post with no majority in the House. In the Karnataka Council, the BJP is the single largest party with 31 members, followed by Congress with 29 members including the Chairman. While the JD(S) has 14 members, an independent MLC is also part of the 75-member house at present.


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'There’s a job to be done': New Zealand's leader explains success against Covid-19

"We knew that flattening the curve wasn’t sufficient for us," Jacinda Ardern said.

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Wistron iPhone plant violence: Workers say months of pent-up anger behind outburst

Violence
Workers, who said that they had been exploited for months with poor pay, refused to condone the damage caused to the plant on Saturday.
Wistron iPhone plant
An enraged woman, wearing a face mask and holding a metal rod, destroys glass windows at Wistron’s iPhone manufacturing unit in Karnataka’s Kolar district. Behind her, several employees can be heard hooting, and within seconds, another young man can be seen joining her. Several such videos of employees vandalising the manufactory have gone viral on social media since December 12. These videos have led to the government and other political parties condemning the protests, the videos have one common theme — the collective anger of the employees. The Taiwan headquartered company that manufactures Apple iPhones, and other products for Lenovo and Microsoft, has alleged that the vandalism cost them around Rs 26 crore, and the Kolar police have arrested 126 persons in connection with the violence. The Rs 26 crore figure was downgraded from Rs 437 crore first mentioned in the police complaint by the company. The state Industries Department has expressed solidarity with Wistron. “Government of Karnataka is deeply disturbed over the events that happened at the Wistron factory premises recently at Narasapura Industrial Area, Kolar.  We strongly condemn the violence that took place in the plant premises. Police investigations are going on and strictest action would be taken against the wrong doers,” the government has said. While the government has taken a stand that violence of any sort cannot be condoned, employees say it is also imperative to understand why thousands of contract employees went violent that day. TNM spoke to several employees on condition of anonymity, who stated that the anger among the workforce had been simmering over the last six months as management did not address their grievances as they were struggling with delayed payments and lack of overtime pay.  The events that led to the vandalism at Wistron’s plant Gagan*, a 25-year-old employee, joined the company eight months ago through Randstad India Pvt Ltd, a company that Wistron has contracted to hire workforce in Kolar. When he started his job as a data entry executive, he was getting Rs 11,475 as basic salary per month, working eight hours a day. Gangan maintains that he did not miss a single day of work since joining the company and even worked on festival days. “The company’s management said they would pay us Rs 3,500 for two days if we worked on two festival days. Many employees took up this offer,” Gagan said.  However, after completing one month, Gagan noticed the pay for three days of work had been deducted. Until September this year, he has lost pay for 20 days in total, and claims the company falsified attendance records and deducted the pay. “I went to them every single month and asked for the money. They kept saying ‘we will give it the next month’. I was supposed to get Rs 7,600. This may seem like a small amount to many but for me I could have paid three months worth of chit fund deposit,” Gagan adds.  Parmesh*, a 26-year-old employee at Wistron’s plant in Kolar complains of a similar issue. He says that the company introduced a 12-hour work day in October, promising to pay overtime for the four hours added to the standard eight-hour day. The company, he says, promised to give each employee Rs 100 per day for the overtime work.  Parmesh says the employees were promised a basic salary of Rs 15,600 per month, as well as a Rs 300 allowance per day if the employees gave up two break periods, as outlined in a management notice. Almost all employees took up the offer as it would mean more money, he notes. “I have to take care of my mother and two younger sisters. Even this money would have helped me a lot,” Parmesh says.  However, Parmesh says that in November just Rs 12,670 was deposited in his account. “I had not even gotten basic pay. I didn’t miss a single day. Besides, I worked two days during the Dasara festival. According to the notice board, we were promised Rs 3,500 for two days. Besides, the company did not pay the Rs 300 per day it promised for forgoing breaks,” Parmesh says.  Some contract employees allege they were not paid for two months at a stretch, while many saw payments delayed for days, even weeks, over the last six months, said Sandhya, who has worked at the plant for almost a year. “We are supposed to get our pay before the 10th of every month. The company paid us whenever they wanted. Sometimes it was on the 14th and sometimes even on the 20th or 22nd,” she says.   Like many other employees, Sandhya’s burdens have compounded due to the payment issues. As the sole breadwinner of her family, she has to support her two children and mother on a meagre salary. “I am in deep debt now. I have to pay loans for borrowing money when payments were not made on time,” she adds.  Parmesh says that he and over 500 employees had approached the company’s HR department and demanded that they be paid appropriately. “They told us to ask the contractors and that it was not the company’s fault,” Parmesh adds.  In October this year, over 100 employees had approached Kolar DC Sathyabhama and asked her to intervene. DC Sathyabhama said that she had visited the plant and had spoken to the management, who had promised to reduce the work hours to eight hours per day as per the Factories Act. “The company had promised to resolve the issue,” she said.  In a letter to the Karnataka government, Wistron Managing Director Sudipto Gupta said that the company is distressed by recent events and are supporting the police investigation. "We are deeply distressed by the recent incidents that took place at our Narasapura Industrial Area, Kolar. In this difficult hour, we appreciate the support we have got from the Government of Karnataka.  We are working closely with State Government to ensure such incidents do not recur and support the police investigations," read the letter. Though Wistron has not officially reacted to the wage dispute, ‘sources’ from the company have been quoted in the media claiming that they have made timely payments. Karnataka government ministers too have said that Wistron paid contractors, who may have in turn caused delays. What happened in the wee hours of December 12? At around 6 am on Saturday, around 500 employees who had finished the night shift, went to handover a letter to the Human Resources Department. The employees had listed their grievances including delayed payments, faulty attendance reports and outstanding payments for overtime work hours.  Sandhya, who was among the employees who approached the HR on December 12, says that officials refused to engage in a conversation and allegedly shut the door, locking themselves inside. “They told us that we have to take this up with the contracting company as Wistron had made regular payments. We informed them that the contracting company had placed the blame on Wistron,” Sandhya recounts.  Employees allege that this wasn’t the first time they approached Wistrons HR Department and the employment contracting agencies in the last six months individually and collectively. They alleged that each time they were told the outstanding salary amounts would be deposited into their accounts the following month. However, the delays never really stopped. “When Wistron said they can’t do anything, this made everyone angry. I don’t know how it started but people started throwing items. Some of the employees went outside, snatched the steel bollards near the security checkpoint and began smashing the windows. A lot of employees were angry for many months and it looked like they had had enough. As soon as the violence began, a lot more employees began pelting jelly stones and broke windows with steel bollards,” Sandhya recounts.  Police sources told TNM that they believe the violence was planned ahead. However, employees deny this and maintain that both the police and the management were aware of a protest they had planned outside the Deputy Commissioner’s office on December 12 at 11 am. Employees TNM spoke to said that those who resorted to vandalism uprooted metal bollards near the security checkpoint and the parking lot. The jelly stones lying near the construction site of the new wing at the plant were also used, they said. “We had also issued a press release. No one anticipated that violence would break out. The plan was to approach the HR first before gathering to protest outside the DC’s office,” Gagan said.  Muniraju, a police officer in Kolar, who was among the officers called in to diffuse the situation on December 12, said that around 300-400 women employees, who were exiting the building after the night shift, were “cornered by protesters” near the locker room. “There was a manager named Malini, who rushed them into a room as the protesters, who were entering the building for the morning shift began rushing into the building. They pushed and pulled at some of the women employees,” Muniraju said. This incident has been mentioned in a police complaint filed by Wistron’s factory manager. However, employees that TNM spoke to said that as many protesters were entering and leaving the building, there could have been a rush. “It is not OK that so much violence erupted. But before the government and the police treat us like criminals, they should understand our state of mind. It made us feel so helpless. Would the police be OK if they were not paid for months on end? Or government officials?” Parmesh*, another employee of Wistron questioned.  What action will the Labour Department take? On Tuesday, Additional Chief Secretary of the Industries Department, Gaurav Gupta met with the Labour Commissioner Akram Pasha and officials with the Industries Department to discuss the issue. The Labour Department, in its report to Gaurav Gupta, said that it has asked Wistron to provide records of employees' attendance. Besides, the Labour Department’s report submitted Tuesday states that Wistron was not directly involved in making payments to 8,490 contract employees but the employment of these persons was contracted to five different firms: Randstad India Pvt Ltd, Adecco India Pvt Ltd, Needs Manpower Ltd, Creative Engineerings and Quest Corp Ltd.  The Labour Department has also noted many employees were not paid on time, attendance reports were incorrect and employees were not paid for overtime. The report also stated that 126 employees have been arrested so far. “We have noted that the company hired people through employment agencies without checking whether they suited the role. We have also observed that without detailing the criteria, the company hired them as contract employees. It was also observed that the 1,343 permanent employees enjoyed more benefits than the contract employees, leading to the discord,” the Labour Department’s report to the Additional Chief Secretary reads.  The Labour Department in its report said that based on its preliminary investigation it has recommended sending out notices to Wistorn and the employment contracting companies under relevant sections of the Conditions of Employment Act 1936.  “Clauses under the Contract Labour (Regulation & Abolition) Act 1970 and Minimum Wages Act 1948 seem to have been violated as action pertaining to these violations are recommended,” the report adds.  The Department has also recommended that Wistron take employees demands into consideration. “We have also recommended that the company resolve the issue internally,” the report added.  *Names changed  


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