Tue, Nov 27, 2012 - Page 15 News List

Suppliers violated regulations: Samsung

INSPECTION RESULTS:A China Labor Watch report in September found abuses at six factories owned by Samsung, but did not identify any cases of child labor

Bloomberg

A pedestrian walks past a Samsung Electronics Co retail store in Yangon, Myanmar, on Tuesday last week.

Photo: Bloomberg

Samsung Electronics Co, the world’s largest maker of TVs and mobile phones, said an internal audit of suppliers in China found “inadequate practices” that include employees working more overtime than allowed by law.

Samsung found that some of the 105 suppliers checked in September were fining workers for being late or absent and were holding copies of labor contracts, the company said in an e-mailed statement yesterday.

The review did not identify any instance of child labor at the suppliers, Samsung said.

A New York-based labor group said in August an assembler contracted by the South Korean company hired children.

Labor advocates are widening monitoring of electronics factories in Asia to Samsung, Dell Inc and Hewlett-Packard Co after suicides at a China plant of Apple Inc supplier Foxconn Technology Group (富士康科技集團) in 2010 drew increased attention to working conditions.

China Labor Watch said in a report in September it discovered “severe labor abuses” at factories owned and operated by Samsung and its suppliers.

“Samsung takes concerns about working conditions in China seriously,” the Suwon, South Korea-based company said in yesterday’s statement. “Whenever an issue is identified, we take immediate and appropriate steps to correct it.”

Samsung is developing and implementing corrective actions to address every violation, it said in the statement.

Those may include new hiring policies, work hours and overtime practices, it said.

The company said all candidates will be interviewed in person before hiring to strengthen identity verification measures and to detect fake IDs.

Measures to eliminate working hours beyond legal limits will be implemented by the end of 2014, the company said.

Samsung said it examined 105 companies in China, with a total of more than 65,000 workers, during a four-week period in response to China Labor Watch’s reports on its suppliers.

The company said it will review another 144 suppliers by year’s end.

The labor group said in August that seven children younger than 16 were working in a factory of HEG Electronics (Huizhou) Co (海格國利電子) that makes phones and DVD players for Samsung.

“Although we did not identify any child labor during our audits in September, we have demanded all suppliers to adopt a new hiring process immediately, and contracts with suppliers who use child labor will be terminated,” Samsung said in yesterday’s statement.

In a Sept. 4 report, China Labor Watch said it found abuses at six factories owned and operated by Samsung and two of its suppliers’ facilities.

The violations included forced overtime work amounting to more than 100 hours a month, unpaid work and 11 to 12 hours of standing, the group said.

The eight plants investigated by the labor group employed a combined 24,000 workers making mobile phones, DVD players, mobile displays and air conditioners, the Sept. 4 report said.

The base salary for workers at a printer factory owned by Samsung is about US$250 a month, the report said.

Samsung plans to have the Electronic Industry Citizenship Coalition (EICC), a Washington-based industry group, regularly check its own plants and all of its suppliers in China from next year.

The EICC is a group monitoring industry supply chains, with electronics and technology companies as members. Its current board members include officials from International Business Machines Corp, Dell, HP and Intel Corp, according to its Web site.

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