Samsung Suspends Business with Chinese Supplier Over Child Labor Accusations

Published By : 14 Jul 2014 | Published By : QYRESEARCH

Samsung Electronics Co Ltd has shelved business with a Chinese mobile phone supplier after it suspected the company of employing under-aged workers. This comes less than a week after a U.S. watchdog accused the supplier of engaging in child labor on finding at least five child workers employed without contracts.

Dongguan Shinyang Electronics, the Chinese company that supplies mobile phone covers and parts is also being looked into by the Chinese authorities. If investigations reveal that the allegations are indeed true, the South Korean smartphone maker will permanently suspend business with the supplier.

Samsung has a zero-tolerance policy on child labor and ensures that suppliers hire candidates after a face-to-face interview and a scanner that detects fake IDs to fully eliminate child labor. However, the U.S.-based China Labor Watch stated that Samsung’s monitoring system was not effective. It also found that underage employees were hired who worked for 11 straight hours a day for a pay of USD 1.20 per hour. The children received neither overtime pay nor social insurance. In 2012, Samsung was under fire when the watchdog claimed that the smartphone maker was ignoring cases of child labor at its suppliers in China.
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