Apple has suspended new business with supplier Pegatron after the Taiwan-based original equipment manufacturer misclassified student workers. Apple also said Pegatron broke its Code of Conduct for suppliers.
In a statement provided to Bloomberg, Apple said, “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.”
According to Bloomberg, Apple has placed Pegatron on probation until it finishes taking corrective action.
Pegatron competes with Foxconn, another major Apple supplier. Both companies are headquartered in Taiwan, but have factories in China and other countries, and have faced scrutiny over their labor conditions. For example, workers have accused both companies of forcing them to work excessively long hours.
TechCrunch has contacted Apple and Pegatron for comment.