China Daily Global Edition (USA)

Samsung: Suppliers fell short on safety

- By BLOOMBERG

Samsung Electronic­s Co said 59 suppliers failed to provide adequate safety equipment for workers as the world’s largest smartphone­makerstrug­gles to improve labor standards at plants inChina.

Amajority of Samsung’s suppliers do not comply with China’s legally permitted overtime hours while no instances of child labor were found, the Suwon, South Korea-based company said in its annual sustainabi­lity report published on its website on Monday. Additional training is being provided to suppliers to prevent injuries to workers and improve standards.

Samsung and Apple Inc are among companies auditing their supply chains to improve worker conditions, avoid use of so-called conflict minerals and reduce the impact on the environmen­t. The Galaxy smartphone­makercameu­nderfire in 2012 for conditions at supplier plants and promised to end hiring discrimina­tion and ensure adequate safety equipment and trainingby­theendof that year.

“Labor costs are rising inChina so it’s becoming more difficult for companies operating there,” said LeeMoon-hyung, a Beijing-based director at the Korea Institute for Industrial Economics & Trade. “They also have to meet their social responsibi­lity standards. That’s not optional.”

An inspection checklist to measure Samsung supplier compliance will be fully implemente­d this year and will expand its monitoring to other areas, includingS­outheastAs­ia, the company said in Monday’s report.

Samsung said 40 suppliers did not conduct evacuation drills and 50 showed “inadequate efforts” to establishe­mergency response programs. Three suppliers exceeded permissibl­e limits on environmen­tal factors such as dust and noise at worksites, according to the report.

In December, Samsung was criticized by worker rights group China Labor Watch, which said a supplier was not paying overtime to some employees while discrimina­ting against pregnant women, older applicants and ethnic minorities.

In February, Apple uncovered labor violations in its supply chain, including the use of underage workers and abuses of migrant laborers lured by recruiters to work in factories making its devices.

Apple conducted 451 reviews of multiple levels in its supply chain covering facilities where nearly 1.5 million people work, according to its eighth annual internal audit. The company saidit’smoreaggre­ssivelytry­ing to remove the use of so-called conflictmi­neralsandh­asgotten 95 percent of the facilities to keep work to less than 60 hours per week.

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