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Samsung finishes initial Chinese factory audits, plans long-term solutions to labor woes
Samsung faced some serious allegations surrounding the plants of its Chinese contractor HEG Electronics earlier this month, including potentially dire accusations that HEG was employing child labor. The Korean firm promised audits to set the record straight, and we're seeing the first fruits of those inspections today. The results were decidedly mixed. While there weren't any underage workers when Samsung visited, it did find HEG staff working excessive overtime, some unsafe practices and a system that punished late workers with fines. Samsung's response will go beyond just asking HEG to shape up, though: it plans to finish auditing all 105 of its exclusive Chinese contractors by the end of September, determine whether inspections of non-exclusive contractors are needed and set up a long-term audit schedule past 2013 that includes tougher requirements. While there's no certainty that the reforms will lead to the intended results, we're glad to hear that Samsung wants to turn things around at such a rapid pace.
Samsung accused of, denies employing child labor through Chinese contractor
Despite improvements, working conditions are still a sore point in China -- and China Labor Watch wants to emphasize that no company is exempt from scrutiny. The rights advocacy group claims that, on top of pushing mandatory overtime and poor overall conditions, Samsung contractor HEG Electronics has allegedly been employing at least seven underage workers at a Huizhou plant making phones and DVD players. Not surprisingly, Samsung has been quick to defend itself, asserting that it found "no irregularities" in two separate inspections this year and that it plans a third as a response to the new accusations. Who's telling the truth is still up in the air, although China Labor Watch is taking aim only after going undercover; it's long been suspected that contractors whitewash their labor practices when they see corporate inspectors coming from a mile away. If there's any substance to the allegations, Samsung may be the next tech giant taking action to mend a bruised public image.
