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November 27, 2012

Samsung finds illegal work practices in Chinese facilities

The company's audit of Chinese suppliers found no evidence of child labour

By CBR Staff Writer

South Korea based Samsung Electronics has said that an internal audit of suppliers in China found "inadequate practices" at the facilities, including overtime hours in excess of local regulations.

The audit, which covered over 65,000 Samsung’s employees, follows allegations made by China Labor Watch, in August this year that the South Korean firm’s suppliers hired children to work.

The company found that about 105 suppliers checked in September this year were fining workers for being late or absent.

Samsung said it found no evidence of child labour after reviewing HR records of all workers aged below 18 and conducting face-to-face ID checks.

The South Korean firm said: "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," the company said.

The company is currently reviewing 144 more supplier firms in China, which is scheduled to be completed by the end of this year.

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"We have identified the need for initiatives to reduce employee overtime as a top priority, and we are researching and developing measures that will eliminate hours beyond legal limits by the end of 2014," Samsung said.

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