Samsung to review 250 Chinese suppliers for labour violations

SEOUL Mon Sep 3, 2012 7:42pm IST

Workers prepare the booth for Samsung at the Consumer Electronics Show opening in Las Vegas January 9, 2012. REUTERS/Rick Wilking/Files

Workers prepare the booth for Samsung at the Consumer Electronics Show opening in Las Vegas January 9, 2012.

Credit: Reuters/Rick Wilking/Files

Related Topics

Stocks

   

SEOUL (Reuters) - Samsung Electronics Co said on Monday it would inspect 250 Chinese companies which make products for the South Korean firm to ensure no labour laws are broken after a U.S.-based group accused one of its suppliers of using child labour.

Samsung also said its audit into working conditions at an HEG Electronics facility in Huizhou in southern China found no under-aged workers. New York-based China Labor Watch said last month seven children younger than 16 were working in the factory that makes phones and DVD players for Samsung.

But Samsung said the audit identified several instances of inadequate management and potentially unsafe practices such as overtime beyond local regulations, improper safety measures and a system of fines for tardiness or absences.

"Samsung has demanded that HEG immediately improve its working conditions... If HEG fails to meet Samsung's zero tolerance policy on child labour, the contract will be immediately severed," Samsung said in a statement.

It said it would conduct inspections for all 105 supplier companies in China which produce goods solely for Samsung by the end of September, and review, via documentation, by the end of the year another 144 suppliers that makes products for it and other firms.

"If supplier companies are found to be in violation of our policies and corrective actions not taken, Samsung will terminate its contract with those supplier companies," Samsung said.

The move follows allegations earlier this year that Apple Inc's (AAPL.O) products were assembled in China amid multiple violations of labour law, including extreme hours.

Apple and its main contract manufacturer Foxconn Technology Group, whose subsidiary Hon Hai Precision Industry assembles Apple devices in China, later agreed to tackle violations of conditions among the 1.2 million workers assembling iPhones and iPads. That landmark decision could change the way Western companies do business in China.

(Reporting by Miyoung Kim; Editing by Ron Popeski)

FILED UNDER:

Reuters Showcase

Putin Critic Killed

Putin Critic Killed

Russians march in memory of murdered Putin critic.  Full Article 

Pakistan's First Win

Pakistan's First Win

Irfan bounces Zimbabwe out as Pakistan claim first win.  Full Article 

Budget 2015

Budget 2015

Full coverage of 2015/16 budget.  Full Coverage 

Hacked to Death

Hacked to Death

Bangladesh pays tribute to U.S. blogger killed in machete attack.  Full Article 

The Apple Car

The Apple Car

Apple car rumours fuel Geneva debate about car of future.  Full Article 

Movie Review

Movie Review

"Dum Laga Ke Haisha" is rooted in reality, writes Shilpa Jamkhandikar.  Full Article | Related Story 

Crowded Market

Crowded Market

China's Huawei enters smartwatch frenzy with round-face models.  Full Article 

Lathmar Holi

In Pics: Lathmar Holi

Images of "Lathmar Holi" at Nandgaon in Uttar Pradesh.  Full Coverage 

World Cup 2015

World Cup 2015

Full coverage of cricket world cup in Australia and New Zealand.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage