Apple suspends new business with Pegatron over labour violations

(Bloomberg) — Apple Inc. suspended new business with key supplier Pegatron Corp. after discovering violations of rules related to a student workers’ program.

The Cupertino, California-based technology giant said it’s placed the Taiwanese company, which assembles iPhones and iPads, on probation and will not give them new business until corrective action is completed. Pegatron’s shares gave up gains and were down as much as 3% in late Taipei trade. The company wasn’t immediately available for comment.

“Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major,” Apple said in a statement. “Our investigations have found no evidence of forced or underage labor.”

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