Samsung scraps business with Chinese supplier over child labour employment

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by CBR Staff Writer| 14 July 2014

China Labor Watch found ‘at least five child workers’ (under the age of 16) without contracts at Dongguan Shinyang Electronics.

Samsung Electronics has temporarily halted business with one of its Chinese suppliers, Dongguan Shinyang Electronics, over alleged reports of child labourers employed.

The move comes after Samsung conducted a probe into the supplier, following child labour accusations by the New York-based campaign group, China Labor Watch.

Calling Samsung's monitoring system "ineffective", China Labor Watch alleged that 'at least five child workers' (under the age of 16) worked without contracts at Dongguan Shinyang Electronics.

Samsung said in a statement that the Chinese authorities are also looking into the case and, if it is proved that the factory has employed children unlawfully, the business suspension will become permanent.

"Following the investigation, Samsung decided to temporarily suspend business with the factory in question as it found evidence of suspected child labor at the worksite," Samsung added.

Vowing to further strengthen monitoring to prevent similar cases in the future, Samsung added: "It is unfortunate that the (CLW) allegation surfaced despite Samsung's efforts."

The watchdog also reported other breaches at the same plant, including unpaid overtime wages, extreme overtime and a deficiency of social insurance and training.

The South Korean firm noted that it conducted three audits since 2013 of the supplier, with the latest one ending on June 25.

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