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Samsung finds 'inadequate practices' in China

Samsung has found ‘inadequate practices’ at some of its supplier factories in China, including overtime hours in excess of local regulations.

The company’s audit of conditions in China came in response to China Labor Watch’s reports. The New York-based labour rights group said in August that children younger than 16 were working in a factory that made phones and DVD players for Samsung.

Samsung conducted a four-week audit in September of 105 suppliers that manufacture Samsung products in China, covering more than 65,000 employees.

The company said it did not uncover any instances of child labour, but did find several instances of “inadequate practices at the facilities, including overtime hours in excess of local regulations, management of supplier companies holding copies of labor contracts, and the imposition of a system of fines for lateness or absences”.

Samsung said it was now implementing corrective actions to address the violations found at the facilities.

Samsung has demanded that suppliers adopt a new hiring process immediately, and warned contracts with suppliers who used child labour would be terminated.

The company is also researching and developing measures to eliminate hours beyond legal limits by the end of 2014. It also said a fines/penalty system had been abolished.

“Samsung takes concerns about working conditions in China seriously and, whenever an issue is identified, we take immediate and appropriate steps to correct it,” the company said in a statement.

Samsung is also reviewing 144 more of its suppliers in China, which would be completed by the end of the year.

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