Samsung To Do Less Business With Chinese Supplier After Child Labor Issues Surface
Ren Benavidez | | Aug 07, 2014 03:34 AM EDT |
(Photo : REUTERS/Kim Hong-Ji)
Samsung Electronics declared that it will make fewer orders with its China-based supplier after finding out the supplier employed child workers.
The IT giant will reportedly lessen its orders with the parts supplier in China by 30 percent following Samsung's discovery of the child labor practices within the factory.
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Samsung deferred doing business with Dongguan Shinyang Electronics Co. Ltd. in July when the China Labor Watch told the IT giant that the supplier hired at least five child workers.
The U.S. based labor watch group informed Samsung that Dongguan Shinyang hired the child workers through an agency.
"Samsung has decided to still take measures against Dongguan Shinyang to hold the supplier responsible for failing to monitor its subcontractors, in accordance with Samsung's zero tolerance policy on child labor," Samsung said in a statement released in July.
The penalty imposed by Samsung on the Chinese supplier came following an increased pressure on the IT giant to guarantee that its suppliers abide by the labor law.
In China, its labor law prohibits the employment of workers who are under 16.
However, it is not only Samsung Electronics that has been reported to employ underage workers.
In 2012, the China Labor Watch has also discovered child workers in another Chinese supplier company that has ties with a different South Korean firm.
The report by China Labor Watch exposed that the children were found working for the supplier has preempted the suspension of business that Samsung imposed.
Samsung conducted an independent investigation against the supplier, but found no proof that it hired underage workers.
In a statement released by Samsung Electronics on Tuesday, the company said it will observe all the necessary protocols to ascertain that the issue does not happen again.
"We will ensure that similar incidents do not recur," a Shinyang Engineering officer said.
Tagschild labor
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