A week ago, news reports trickled in about Wistron shutting down its iPhone assembly production in India and shifting its other manufacturing operations to countries like Vietnam and Mexico. There may have been profitability pressures at stake — and an inability to compete with the larger Apple suppliers Foxconn and Pegatron. The Tata group is now stepping into the void by buying out the entire Wistron plant on the outskirts of Bengaluru.
It remains to be seen whether the Tata group is able to run the unit profitably and in a sustainable manner. Beyond the usual business imperatives, there is also the issue of a record of poor industrial relations — something that doesn’t get sufficient attention these days.
Less than three years ago, violence erupted at Wistron’s factory when, according to the police complaint, “5,000 contract labourers and 2,000 unknown culprits vandalised the factory”. Now, violence of this ki
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