Samsung finds evidence of child labour, suspends business with supplier in China

Since 2012, the labour practices at Samsung suppliers have come under intense scrutiny, when the watchdog accused one of Samsung’s suppliers of using child labour

Since 2012, the labour practices at Samsung suppliers have come under intense scrutiny, when the watchdog accused one of Samsung’s suppliers of using child labour

Samsung Electronics Co Ltd said it had temporarily suspended business in one of its facility in China after finding evidence that its supplier was employing child workers. The move comes less than a week after a US watchdog report accused the supplier of using under-aged workers and criticised Samsung’s monitoring of labor practices at suppliers was inadequate.

The South Korean smartphone maker said it conducted three audits of the supplier since 2013, an entirely owned subsidiary of South Korea’s Shinyang Engineering Co Ltd, the latest of which was completed on June 25. However, another investigation induced by the watchdog’s report led to evidence of what Samsung called an illegal hiring process at Dongguan Shinyang Electronics Co Ltd, pointing to holes in the world’s biggest smartphone maker’s potency to impose its labour guidelines for Chinese suppliers.

“The Chinese authorities are also looking into the case,” Samsung said in a statement today, adding that it would cut all ties with the supplier if the allegations were true. “If the investigations conclude that the supplier indeed hired children illegally, Samsung will permanently halt business with the supplier in accordance with its zero-tolerance policy on child labour,” it said.

US-based activist organisation, China Labor’s disturbing new report alleging that the Chinese firm used child labour within a Samsung supplier’s factory claims that a number of their seasoned workers on the assembly line are minors without contracts at the supplier. Not only that, the report also says that child labourers it found working at Dongguan Shinyang were being paid nearly two-thirds of what adult workers would be paid in weekly wages despite working seven days a week, 11 hours a day, with no paid overtime. The report also speaks of poor living and dangerous working conditions in which the child workers also had trouble eating proper food at the factory cafeteria due to their night shift hours.

It was also reported that the supplier’s personnel at Dongguan Shinyang did not follow the required facial recognition system meant to corroborate whether the applicant’s face matched the ID provided.

Samsung pushes for suppliers to adopt a hiring process that includes face-to-face interviews and the use of electronic scanners to spot fake IDs, to ensure no child workers are employed.

Since 2012, the labour practices at Samsung suppliers have come under intense scrutiny, when the watchdog accused one of Samsung’s suppliers of using child labour, it was reported that seven children younger than 16 were working for one of Samsung’s China-based suppliers. The electronics giant subsequently denied of any under-aged workers at the facility. Even the Chinese labour law forbids hiring workers who are under 16.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Ticketing app Dice raises $122 million from SoftBank and ex Apple veteran

Ticketing app Dice raises $122 million from SoftBank and ex Apple veteran

Dice is looking forward to expand more after its latest funding round raised $122 million, led by Tony Fadell.
7 hours ago
The chip shortage is a ‘short-term’ problems, says Elon Musk

The chip shortage is a ‘short-term’ problems, says Elon Musk

The CEO’s outlook is far more optimistic than other automotive industry leaders who believe it may last up to 2023-24.
2 days ago
Supply chain crisis bad news for automotive industry leaders

Supply chain crisis bad news for automotive industry leaders

The world’s biggest car companies are on track to lose production of 7.7 million vehicles in 2021. The forecast advices automakers on supply chain and other issues.
5 days ago
Scammers dupe Apple fans with free bitcoin lure

Scammers dupe Apple fans with free bitcoin lure

Savvy scammers used a fake event stream, a fake Apple website, and the promise of free bitcoin to lure fans into opening up their wallets.
6 days ago
Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

The total amount of cash to be received as part of MUFG Union Bank’s sale to Bancorp is $7.3 billion (800 billion yen).
1 week ago
Evergrande: A black swan event that could spook markets

Evergrande: A black swan event that could spook markets

EverGrande is now known as the “world’s most indebted property developer” and serves as a symbol of corporate excess.
1 week ago