Apple Inc. today reportedly blocked business dealings with Taiwanese supplier firm, Pegatron Corp. after being found to have violated labor laws in a program of work while studying.
Following the issue, Apple did not hesitate to restrict cooperation with the maker of the iPhone until the sentence is completed.
According to reports, the iPhone-making firm from Taiwan is accused of misclassifying students participating in the program, encouraging some of them to work overtime including night shifts.
The action has indirectly violated the act outlined by Apple which is Supplier Code of Conduct and is now Pegatron under Apple's monitoring.
This case is not the first time it has been reported. In 2014 and 2016 Pegatron faced similar charges, making the firm a major topic of criticism from labor activists over the past few years.
Pegatron is a business partner with Apple that contributes a lot to the installation of Apple products such as the iPhone. Like other competitors, Foxconn or Hon Hai Precision Industry Co., Pegatron plays an important role as Apple’s global supplier.
The incident had a negative impact on Pegatron as Luxshare has great potential to take over the iPhone installation in 2021.
Pegatron shares fell 2.1% in Taipei and as of Friday, Apple shares closed 0.1% lower at $ 118.69.
