Lessons From Wistron

Labour trouble at the plant calls for introspection on the right balance between reforms and Licence Raj

- RUKMINI RAO AND SONAL KHETARPAL

The First Information

Report filed at the Vemagal police station, a few kilometres from Wistron Infocomm Manufacturing’s facility at Narasapura Industrial estate in Karnataka, details the violence at the factory premises that took place at the break of dawn on December 12. It said around 6 a.m., a mob consisting of workers and outsiders barged into the human resources block wielding iron rods, and went on a rampage destroying valuables and setting ablaze company vehicles. Several items, including iPhone and laptops, were reportedly stolen as well, and the company initially estimated a loss of around ₹437 crore. According to workers, the reason behind the rampage was an insensitive management, which ran the factory like a sweat-shop, with 12-hour shifts, nearly 80 per cent of the workforce on contract, and an inordinate delay in wage payment and even non-payment in certain cases. The state government swung into action immediately and dispatched teams from the labour department with senior officials, while arresting nearly 300 workers for rioting.

What The Investigation Revealed