Apple puts Taiwan's Pegatron on probation

Apple and its suppliers have been accused of poor labour practices in the past.

But the U.S. company has been trying to get a grip on such issues.

And a sign of that came Monday (Nov 9).

Apple said it had put Taiwanese supplier Pegatron on probation.

That's after finding that the company violated Apple's supplier code of conduct by asking student employees to work night shifts or overtime.

Apple said Pegatron had mis-classified student workers and falsified paperwork to disguise the violation.

Pegatron is one of a handful of Taiwanese manufacturers on the island, alongside Foxconn, which dominate the iPhone assembly chain.

Apple said under the probation "Pegatron will not receive any new business from Apple until they complete all of the corrective actions required."

Pegatron's shares closed down 2.1% on Monday, underperforming a 1.2% rise in the broader Taipei market.

The firm reported a $676 million profit in 2019, up 74% on the previous year.