Samsung Corp. has to be feeling a little picked on these days. Mere weeks after it lost a patent battle with Apple Inc. (Nasdaq: AAPL), a watchdog agency has reported that Samsung is violating workers' rights.
According to Wall Street Journal and BBC reports, China Labor Watch found incidents of forced overtime, underage workers, and poor working conditions in a number of Samsung factories. Samsung owns several factories in China and outsources to others.
The charges are similar to those that have been directed at Apple, which outsources much of its manufacturing to Foxconn Electronics Inc. After its accusations surfaced, Apple agreed to let a third party audit Foxconn's facilities. The BBC says Samsung has not agreed to third-party audits. This is clearly a mistake. Already a high-profile company, Samsung will be in the spotlight for the foreseeable future as it battles the Apple verdict. The labor charges won't just disappear. Even if Samsung weren't in the spotlight, investigating these allegations would be the right thing to do.
Samsung hasn't faced nearly as much outrage as Apple did, and I have to wonder why. Is it because Apple is a US company and should know better? Is it because Apple is a bigger target? Or is it because people are no longer surprised these conditions exist?
I'm going with the last reason. There seems to be a kind of apathy around the topic now that Apple is fixing its problems. (For one thing, Foxconn has raised its wages.) But if we are to accept the California court's decision that Samsung's products are just like Apple's, it's not a stretch to assume they are built in factories just like Apple's.
The last time EBN was covering this issue, a reader made a good point. Instead of haranguing companies, shouldn't we be putting pressure on the Chinese government? It's no coincidence that all these reports are coming out of China. If you look hard enough, you'll find workers being abused at a lot more factories that are associated with brand names.
As bad as things look for Samsung, the company should be pressured to improve its working conditions. At the very least, it should let a third party inspect the factories.
Does someone know why Samsung didn't allow a third party inspection?
When this same happened to Apple a lot of people critized the company. On Facebook there were comment saying if you have or buy a product from Apple you are supporting worker abuse. What do people say now about Samsung? I don't think consumers have anything to do with any of this in any way.
Yes, the Chinese government is the one to watch concerning worker abuse in any company in China, foreign or not. The companies are not to blame but they should investigate.
"The last time EBN was covering this issue, a reader made a good point. Instead of haranguing companies, shouldn't we be putting pressure on the Chinese government? "
Excellent point !!!!
I believe the same, the "working environment" in China leave the companies to act with similar way. Of course that doesn't give forgiveness to the companies and I strongly believe that we will hear soon and from another company about worker abuse.
Strict labor laws and adherence to those laws are the only option. But if it remains only on paper then the situation will remain same. In these regions laws can be easily altered and certain things are not even considered unlawful. The people working in the plant are mostly affected. People also give in to the adverse situation of the employers as unemployment, poverty and population are the burning factors. If one person resigns or gives in there are many more to work in the same stingy conditions and when it comes to emplyers its the output and revenue that matters. As long as they keep getting the output that passes the quality threshold they wont care how the labor conditions are. I guess the individual thinking must change.
Totally agree with you Bolaji. This problem is there but I guess no big company wants to talk about it or bring it in open. Hats off to Apple that they put the third party audit. When ever there is a problem its better to first accept it and then act on it. I guess if Samsung keeps denying or be defensive it will affect them.
I have close friends that work at Samsung Mexico and they pretty much comfirmed your article, not only to chinese or mexican workers but amoung them, phisical contact between managers is not out of the equation, most of the times they end up being OK, with that kind of behaivor and it seems to be normal practice in Korea ( don't quote me on that ).
I hope goverment see this as an opportunity to grow their human rights audits.
Seems to me it is high time to start demanding from SmartPhone Vendors ( Apple, Samsung, .. ) some sort of REAL & VERIFIABLE commitment to maintain good working condition ( by local standards ) at their Chinese assembly shops. This should include :
1. a written promise at the back of the SmartPhone that " No Slave Labor was used to mfg your Smart Phone " sort of like No Net Tuna or Blood Diamonds
2. Use technology to allow anyone to monitor Factory condition at random, public websites with real time YouTube videos that show the interior of those factories and their dorms
3. set aside a $ 10 ( ? ) surcharge per phone for decent treatment of fellow humans ( the Chinese workers ), funds to be administered by Apple / Samsung HR Dept. till the slave drivers at Hon Hai ( FoxConn ) learn & practice compassion.
Bolaji: good point. There was a missed opportunity here. In fact, red flags should have gone up when Nike and some clothing lines started getting heat for labor conditions in China. That has to be at least a decade ago. (Anyone remember the Kathi Lee Gifford clothing line?) Yet manufacturers flocked to China.
Right. Why wait for more than two years with all the heat directed through that period on Apple? It's not just Samsung. All the equipment manufacturers in China were aware the searchlight was on manufacturing conditions in the country. Why didn't they take steps immediately to counter the problem instead of waiting until being targeted by the labor activists?
The belief that Apple would be the only company to come under the spotlight of environmental and labor activists was flawed from the start. Once Apple started taking steps to rectify the problems identified by these groups it was inevitable they would direct their attentions to the next in the group. Samsung and companies like Dell, HP, Nokia and their Japanese counterparts are next and rightly so.
To give my views to the point raised that Samsung hasnt faced the heat Apple faced in similiar condition. I agree that main reason is because Apple is a US company while Samsung is not from US. The minimum standard of living is widely different in US and other Asian countries. The working condition too are also especially for people working in manufacturing plants. I am not surprised that some watchdog company has pointed out this. And its not just with Samsung I guess many companies in these regions normally compromise because social culture is different, labor laws are not as strict as in US. I guess that's why these companies can generate better revenue from having their plants in China or other Asian countries.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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