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Monday, November 26, 2012

Samsung discovers inadequate practices but no child labour at Chinese factories

Samsung Electronics has completed a review of suppliers based in China after a report from China Labor Watch criticised working conditions at one of Samsung’s Chinese suppliers. CLW said that child labour appeared to be a common practice in one factory, also noting that it had additional concerns about working hours, employment contracts and working conditions.

The new Samsung report didn’t find any evidence of child labour. However, it did identify “several instances of inadequate practices at the facilities” that affected working conditions for staff.

Full details of the Samsung statement issued today are below.


Samsung Electronics Co., Ltd, holds itself and its supplier companies to the highest standards. In response to China Labor Watch’s reports on our suppliers, we conducted an audit over a four-week period in September of 105 suppliers that manufacture Samsung products in China, covering more than 65,000 employees.

The Samsung audit team, comprising 121 trained and certified employees, undertook this urgent and broad-scale action to ensure our suppliers in China are compliant with applicable labor laws and Samsung’s Supplier Code of Conduct.

Samsung did not identify any instance of child labor during the audits after reviewing HR records of all workers aged below 18 and conducting face-to-face ID checks. However, the audit identified 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 is currently reviewing 144 more supplier companies in China, which will be completed by the end of this year. From 2013, Samsung will ensure the independence of the audits and continue to monitor working conditions at 249 Samsung suppliers in China through the Validated Audit Process of the Electronic Industry Citizenship Coalition, a third party audit program.

We are now designing, researching, and/or implementing corrective actions to address every violation that was identified. Corrective actions include new hiring policies and work hours and overtime practices, among other steps, to protect the health and welfare of employees.

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Opinion Articles

Hanging on the Telephone

Are we waiting for mobile marketing to make a move?

Mark Bridge writes:

At the beginning of the 21st century I moved from Vodafone to work for its Vizzavi multimedia portal, wooed by talk of context-specific advertising that would one day use a customer’s location and search history to ensure any ads were precisely targeted. And I’m not the only person who’s been seduced. Consumers, ad agencies, client companies and mobile networks have all been promised much by mobile marketing.

Yet more than a decade later that kind of sophistication seems to be lacking from most mobile marketing messages.

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Last week at The Fonecast: 29th April 2013

Money, messaging, microphones and M2M

Mark Bridge writes:

This week there was only one set of financial results that attracted the mainstream tech media. Apple reported the first drop in quarterly profit for several years as figures fell by 18% to around £6.1 billion. On the positive side, it made around £6.1 billion profit. It also announced dates for its developer conference in June and promised a new version of iOS.

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Fixed line nightmares vs simple mobile

...and why Mobile Termination Rates need to fall

James Rosewell writes:

Due to growth in staff numbers my business (51Degrees.mobi) is in the process of moving offices. Coincidentally I'm also moving our home broadband. It’s not been a pleasant experience.

This got me thinking, because a few weeks ago on thefonecast.com we discussed why Ofcom isn’t treating Mobile Termination Rates (MTR) in the same way as fixed-line termination rates. The mobile industry justifies higher MTRs on the assumption that a mobile network costs more to run than a fixed-line network. It was certainly true when the fixed costs of running a mobile network had to be shared across a relatively small number of customers, even if they did pay a fortune for their contracts and terminals. Intuitively I'd say that’s just not true anymore.

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Last week at The Fonecast: 22nd April 2013

Spring in the air

Mark Bridge writes:

The past few days have seen the arrival of two familiar seasons. Not only has the sun peeked its head from behind the clouds in an approximation of Spring but the mobile industry has been releasing its quarterly results.

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Last week at The Fonecast: 15th April 2013

Going up...

Mark Bridge writes:

It’s claimed there’s recently been some dodgy equine activity in the mobile industry. No, I’m not talking about the dancing pony that promoted Three UK. I’m not even making lasagne jokes. I’m talking about the ‘Trojan horse’ threatening to monopolise the mobile marketplace.

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