Foxconn, Apple say worker dorms for India iPhone plant don't meet required standards

Men ride their motorbikes past a closed plant of Foxconn India unit, which makes iPhones for Apple Inc, near Chennai, India, December 21, 2021.

Apple (AAPL.O) and its iPhone assembler Foxconn (2317.TW) found that some remote dormitories and dining rooms used for employees at a Foxconn plant in southern India do not meet required standards, spokespeople for the two companies said on Wednesday.

Earlier this month, protests erupted after more than 250 women who work at the Foxconn plant that makes iPhones in Sriperumbudur town, near the southern city of Chennai, and live in one of the dormitories had to be treated for food poisoning.

Production at the Taiwanese contract manufacturing giant's plant was halted on Dec 18, Reuters has reported.

Foxconn said on Wednesday it was restructuring its local management team to ensure it can achieve and maintain the standards needed, and was taking immediate steps to improve facilities. All employees would continue to be paid while it makes necessary improvements to restart operations.

An Apple spokesperson said it had dispatched independent auditors to assess conditions at the dormitories "following recent concerns about food safety and accommodation conditions at Foxconn Sriperumbudur."

"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."

Foxconn's Sriperumbudur facility has been placed "on probation" and Apple will ensure its strict standards are met before the facility reopens, the spokesperson for the U.S. company said, adding that it holds suppliers accountable to the highest standards in the industry and regularly conducts assessments to ensure compliance.

Source: Reuters / Reporting by Sayantani Ghosh, Sudarshan Varadhan in Chennai and Chandini Monappa in Bengaluru; Editing by Christian Schmollinger and Kenneth Maxwell