huizhoufactory Samsung to audit Chinese suppliers for labour violations

Samsung has revealed plans to investigate all of its suppliers in China over allegations of labour violations, a problem that has plagued many top technology firms in recent years.

Samsung has revealed plans to investigate all of its suppliers in China over allegations of labour violations, a problem that has plagued many top technology firms in recent years.

 
There are 105 Chinese companies exclusively supplying the Korean electronics giant and all of them will be subjected to an audit this month. Additional reviews of the records of another 144 contracted companies in the country will also be conducted, with room for on-site inspections if deemed necessary.
 
The probes follow accusations that one supplier, HEG Electronics, hired underage workers, which forced Samsung to conduct an investigation of the company. It found no child labourers, but it did find other abuses of labour laws, prompting this wider look at how its suppliers treat staff.
 
huizhoufactory Samsung to audit Chinese suppliers for labour violations
 
Samsung threatened that it may terminate contracts with suppliers found to violate labour laws, though this is likely undesirable, as Chinese suppliers help keep production costs low for many of its products.
 
Bitter rival Apple was in a similar boat in recent months, with poor living conditions and a spate of suicides at supplier Foxconn's factories resulting in staunch criticism. Apple has attempted to rectify the problem with Foxconn, with recent reports that it will subsidise staff wages. Samsung may have to do something similar if conditions and pay at its suppliers are also not up to scratch.
 
Image Credit: HEG Electronics