Apple suspends new business for Pegatron on labour violations

Apple has been working with Pegatron to expand iPhone production outside of China. — Bloomberg

Apple Inc suspended new business with key supplier Pegatron Corp after discovering labour violations at a student workers’ programme, taking strong action to clean up its Chinese-focused production chain.

The Cupertino, California-based technology giant said it discovered several weeks ago that the Taiwanese iPhone manufacturer misclassified student workers and allowed some to work nights and overtime in violation of Apple’s Supplier Code of Conduct. Apple has since placed its partner on probation and won’t give them new business until corrective action is completed.