Samsung to Improve Conditions at Chinese Supplier Factories

Samsung, 11/26/12

Korean consumer electronics maker Samsung has recently released a statement regarding the results of an internal audit of Samsung and Samsung-contracted production facilities in mainland China. The audit was spurred by a September investigation into labor practices at Samsung manufacturing facilities by China Labor Watch. Samsung has outlined the following corrective actions in progress to improve working conditions for its China-based factory employees:

New Hiring Process to Avoid Child Labor

All candidates will be interviewed in person before hiring to strengthen identity verification measures and to detect fake IDs.
Samsung now requires that all suppliers purchase an electronic device to effectively detect fake IDs by the end of November 2012.
Special guidelines on the banning of child labor have been distributed to all suppliers with necessary training provided. The guidelines include Samsung's strong commitments to prevent circumstances of child labor and its pre- and post-actions to prevent employment with fake IDs.

Immediate Actions to Complete by the End of 2012

Hiring discrimination will continue to be prohibited.
Samsung has demanded all suppliers to correct irregularities in labor contracts and distribute one copy to all employees.
A fines/penalty system has been abolished.
Samsung has enforced all suppliers to provide adequate safety equipment and sufficient safety training.
Samsung has demanded all suppliers to provide first-aid kits at manufacturing facilities and dormitories.
Samsung has recommended all suppliers to provide additional training for managers on sexual harassment and physical and verbal abuse.
Hotlines at Samsung subsidiaries are being established for workers at supplier companies to report anonymously any inhumane treatment or violations of labor laws.

Commitments to Address Working Hours

Samsung will develop a longer term plan to resolve working hour practices by the end of 2012.
Samsung will demand all suppliers to cap temporary workers at a maximum of 30% of full-time employees.
Samsung will financially support suppliers in China to increase investment in equipment and to hire additional workers.
Corrective action plans tailored to each supplier are currently under development.

Editor's Note: For more background on this topic, please see "Samsung Audit Finds No Child Labor at Huizhou Facility" MD 9/03/12 issue.

Keywords: scandal contract manufacturer consumer electronics Samsung wireless production facility HR

Marbridge Daily