Samsung in trouble again over overtime

SAMSUNG came under renewed criticism yesterday for illegal work practices at its Chinese suppliers, a day after the South Korean electronics giant admitted excessive overtime and fines for employees in China.

New York-based China Labor Watch said employees at one of Samsung's suppliers in China sometimes worked up to 16 hours a day, with only one day's rest a month.

Samsung Electronics Co, the world's largest maker of cellphones and televisions, said on Monday that a review of 105 of its Chinese suppliers, involving more than 65,000 employees, had found illegal work practices, but it said the companies involved would be given two more years to change their ways.

The audit followed allegations by China Labor Watch in August that seven children younger than 16 were working in one of Samsung's suppliers in China.

Samsung said the audit had found no evidence of child labor.

It did, however, concede several instances of inadequate practices, such as overtime hours in excess of legal regulations and the imposition of a system of fines for tardiness or absence.

"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," the company said in a statement on Monday.

However, China Labor Watch said yesterday that a follow-up investigation found that workers usually worked from three to six times the legal overtime limit.

"The worst situation is in a Samsung supplier factory called Chitwing Mould Industry (Dongguan) Co Ltd (in southern China), where workers' overtime hours surpass 220 hours per month. Workers there can work up to 15 or 16 hours per day with perhaps one day of rest per month," CLW said in a statement.

Samsung said yesterday that hotlines were being set up for workers at supplier firms for anonymous reports of any inhumane treatment or violations of labor laws.

The firm is reviewing 144 more suppliers in China and said the review would be completed by the end of this year.

Samsung also said that from next year, audits of its 249 suppliers in China would be conducted by an independent third party.