Apple stopped new business with supplier Pegatron after the Taiwan-based original equipment manufacturer misclassified student staff. Apple also said Pegatron broke its supplier code of conduct.
In a statement to Bloomberg, Apple said, “Pegatron has misclassified student workers in their program and forged paperwork to cover up violations of our Code, including allowing students to work nights and / or overtime, and in some cases, to do work not related to their major. ”
Apple has put Pegatron on parole pending corrective actions, according to Bloomberg.
Pegatron competes with Foxconn, another large Apple provider. Both companies are headquartered in Taiwan but have factories in China and other countries and have been scrutinized for their working conditions. For example, workers have accused both companies of forcing them to work excessively long hours.
TechCrunch has approached Apple and Pegatron for comment.