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Samsung and Panasonic Accused Over Supply Chain Labour Abuses in Malaysia (theguardian.com)

Samsung and Panasonic, two of the world's leading electronics brands, are facing allegations that workers in their supply chains are being duped, exploited and underpaid in Malaysia. From a report on The Guardian: The two companies have launched investigations into allegations of abuse made by Nepalese workers after a Guardian investigation raised multiple concerns about their treatment. The men said they had been deceived about pay, had their passports confiscated and had been told that they must pay large fines if they wanted to return to Nepal before the end of their contract. They also claimed they were forced to work for up to 14 hours on their feet without adequate rest, and with restricted toilet breaks, in an attempt to settle recruitment fees of up to pound 1,000 -- they said they had to pay this money to secure their jobs. They said they felt "cheated" and trapped in their factory jobs making or assembling components for household electrical goods sold on the global market. "My heart is aching," said one young man who works in a factory making Samsung microwaves. "I was not given the job I was promised. I am doing very difficult work. I haven't got the salary they said I would get."

50 comments

  1. I have my doubts by Anonymous Coward · · Score: 0

    These companies have been in business for so many decades, and if they knew their suppliers would be doing this, they would've demanded change long ago. If this is true - and I doubt it is - then it's not on Samsung or Panasonic, but the supplier who hires the workers.

    1. Re:I have my doubts by ShanghaiBill · · Score: 3, Insightful

      it's not on Samsung or Panasonic, but the supplier who hires the workers.

      Samsung and Panasonic should be auditing their supply chains, including inspection of supplier factories. That is basic corporate ethics, and is a necessity in our modern interconnected world. That being said, we shouldn't jump to any conclusions: Many accusations like this in the past have turned out to be fabricated.

    2. Re:I have my doubts by messymerry · · Score: 1

      Wat? You mean like,,, "fake news"???

      --
      Dear Microlimp: I give you 2 valid product keys for win7 and you reject both of them. Piss off you wankers!!!
    3. Re:I have my doubts by Anonymous Coward · · Score: 0

      These companies have been in business for so many decades, and if they knew their suppliers would be doing this, they would've demanded change long ago. If this is true - and I doubt it is - then it's not on Samsung or Panasonic, but the supplier who hires the workers.

      Wrong. Samsung and Panasonic know what is going on and always have. More importantly, it's *EXACTLY* the reason why they built factories in Malaysia instead of Korea and Japan.

    4. Re:I have my doubts by jrumney · · Score: 1

      Knowing something about the situation in Malaysia, I doubt the stories are fabricated, but I also doubt that a supply chain audit would have uncovered the issue, so I'm not sure Panasonic and Samsung really are to blame for the problem, though their pressure to correct the situation once it is uncovered will be valuable. Abuses of this type are rife in Malaysia, especially since the immigration dept clamped down on legal immigration for factory workers from Indonesia, Vietnam and other countries that formerly provided most of the immigrant workforce a couple of years ago, making it difficult for small and medium sized businesses to get the workforce they need to run their factory. But supply chain audits are announced in advance, so workers can be asked to stay home on that day (without pay) and the auditors do not have the access to immigration systems to authenticate any fake documentation that is presented to them.

      One sad thing for the victims of the trafficking is that they will now be held in immigration detention facilities, under inhumane conditions, until fines are paid. The company that hired them will not have the money immediately available, and probably hired them under a contract from an agent that is explicitly designed to give all parties some level of deniability for responsibility for the immigration status of the employees, so they are prepared to drag the case to court, extending the detention period of their victims for many months. Pressure should be put on Panasonic and Samsung to at least pay fines in advance so the workers can be deported back to their home country and resume their lives, hopefully wiser now, and able to spread the word around their village about the real situations that the agents are selling them into.

    5. Re:I have my doubts by jrumney · · Score: 1

      Sorry having read TFA now, I have to take back the bit about supply chain audit not being able to uncover the issue. These were not workers in a smaller factory supplying components to Samsung and Panasonic as the summary makes it out to be, they were working directly in the companies factories, hired through a labour supply agency. The factory HR dept needs to be sacked and replaced with people who know what labour laws are, and why they should be followed.

    6. Re: I have my doubts by Anonymous Coward · · Score: 0

      Labour laws? Malaysia?
      They may be in the statutes but ugnired, especially by a government desperate to keep big corporations onside.

  2. This is news? by Anonymous Coward · · Score: 3, Insightful

    Samsung and Panasonic, two of the world's leading electronics brands, are facing allegations that workers in their supply chains are being duped, exploited and underpaid in Malaysia.

    This is the *ONLY* reason you build a factory in Malaysia.

  3. The crown has been passed... by Oswald+McWeany · · Score: 1

    As the crown passes from Microsoft to Apple and now to Samsung for biggest computer company, so does the number of "scandal stories". Can't make it to the top without a pile of bodies to climb upon.

    --
    "That's the way to do it" - Punch
    1. Re:The crown has been passed... by Anonymous Coward · · Score: 0

      Say what you want about MS and Apple, but the buggiest software all else equal belongs to Samsung. Their sad attempt at a Alexa/Cortanna/Siri clone is utterly useless. Their TV's crash. I have to unplug my TV once a week to get it to reboot because Netflix crashes. Their Smartthings hub wont talk to their TVs 9 times in 10 or for that matter wont recognize their own Smartcam product 7 times in 10 and I have literally bricked 2 Smartcam's just by connecting them to Smartthings and the Smartcam app at the same time and both apps suck. And I do mean BRICKED -- had to return both. They wouldnt even take curl commands. You couldn't connect to the cams locally and this is before the firmware update which killed local access to Smartcams entirely They have sooo many subsidiaries who don't talk to each other so there is never a consistent looking UI across products and even with appliances the buttons don't have the same look and feel across different products. Google has a similar problem in that their product teams don't talk much to each other too and so the APIs are a giant mess but somehow at least the UI's all have a Google look and feel (except Nest) but Samsung is even worse.

      They make good hardware but the software is pretty much always bad even when they get it "more right" than everyone else like with Smartthings -- it's still half finished and bad.

  4. Need more forced labor by Anonymous Coward · · Score: 0

    And child labor. Beat those fuckers into submission. Make those fucking shoes people! Merchandise isn't going to make itself.

    The restricted toilets breaks... who cares. You don't need to poop every 4 minutes. If you need that option, I'm pretty sure the laws allow you to shit yourself at your convenience.

  5. Yay "free" trade by Anonymous Coward · · Score: 0

    Disposable Asian workers.

  6. Coming here soon by Hognoxious · · Score: 1

    But gig economy, and apps!

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  7. Ship them off to Thailand by Anonymous Coward · · Score: 0

    Sew some volleyballs into their chests and they can be ladyboy hookers.

  8. This is the Dubai model... by wbr1 · · Score: 5, Informative
    Have a third party 'recruit' in poor areas with the promise of a highly skilled job. Transport to another country where you are at a disadvantage everywhere, take the passport, and give a menial, low-paying job with no means to easily contact family or repay your 'transport' debt.

    Welcome to 21st century slavery.

    http://www.vice.com/video/the-...

    --
    Silence is a state of mime.
    1. Re:This is the Dubai model... by Anonymous Coward · · Score: 0

      I never understood how this could work given that there are no slave masters standing their with whips and guns like in the old days. What keeps these people from lynching their managers right on the factory floor?

    2. Re:This is the Dubai model... by penguinoid · · Score: 2

      I never understood how this could work given that there are no slave masters standing their with whips and guns like in the old days. What keeps these people from lynching their managers right on the factory floor?

      That would be the men with truncheons, tasers, and guns.

      --
      Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
    3. Re:This is the Dubai model... by wbr1 · · Score: 3, Insightful

      You are in a foreign country with no passport and no proof of your right to be there. You do not speak the language. Many of your co-slaves and you have similar language barriers. Raise a ruckus, go to 3rd world hellhole jail. No money for bribes, illegal worker, etc. Now, if you manage to get out, you have more obligations and fines. That is if the armed security force at the factory does not break a few of your ribs first.

      --
      Silence is a state of mime.
    4. Re:This is the Dubai model... by Ichijo · · Score: 1

      Your description sounds a lot like the H-1B program, except H-1B workers get paid a little more.

      In both cases, if you don't like your job, you're kind of screwed. Knowing that gives employers all the more incentive to exploit their workers.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    5. Re:This is the Dubai model... by Anonymous Coward · · Score: 0

      You apparently don't understand the difference between "their" and "there", so I'm not surprised.

      Are you a niggar?

    6. Re: This is the Dubai model... by Anonymous Coward · · Score: 0

      Can someone explain how withholding someones passport works? People lose passports, you go to the embassy to get a replacement.. not a big deal?

    7. Re: This is the Dubai model... by wbr1 · · Score: 1

      Oh you sweet summer child.

      --
      Silence is a state of mime.
    8. Re: This is the Dubai model... by Mr+Foobar · · Score: 1

      you go to the embassy to get a replacement.. not a big deal?

      Well, you still have to get to your embassy or consulate. Oh, wait, that's in a city the other side of the country, a nice long trip. You have to travel to that office. If you can get past the armed guards whose primary job is not to let you leave the compound. And replacements cost money. Money that is being withheld from you until you pay certain job "fees" that just never seem to get paid. And you need to show proof of citizenship. Fun thing when you only have the clothes on your back.

      Yea, not a big deal...

      --
      -> I dislike sigs...
    9. Re: This is the Dubai model... by Anonymous Coward · · Score: 0

      If they have their passport, still costs money to leave the country, and likely more than cost of a replacement passport? As far as proof of citizenship goes, that's just as much of a problem for someone who had their passport stolen. A hassle to be sure, but neither of these things are showstoppers. Even so, it should be a serious criminal offence to withhold someone's passport, it's a real shame such bully tactics aren't met with stiff penalties (jail time).

  9. Wait, I thought only Apple was ever guily of this? by King_TJ · · Score: 1

    Seriously though .... I'm not especially well versed in the details of Malaysian government, but it seems they're a Constitutional Monarchy.

    As an American citizen, I've never felt that comfortable with a monarchy or any kind of dictatorship securing the rights and freedoms of individuals. At best, a "benevolent dictatorship" is just a temporarily condition, happened upon by the citizens as "pure luck". A monarchy where the appointed king or queen follows a constitution is better, assuming a well written constitution. But again, enforcement of it would fall to the discretion of the ruler, vs. a whole system of checks and balances to help ensure some of it takes place EVEN if the leader isn't too keen on enforcing it.

    This unfortunate situation sounds like it's common practice in Malaysia right now, which tells me nobody with the ability to change it in government really has an interest in taking action to do so.

  10. Re:Wait, I thought only Apple was ever guily of th by Anonymous Coward · · Score: 0

    The slashdot kool-aid is strong in this one

  11. We've seen this before. by Anonymous Coward · · Score: 0

    Isn't that Nike's old excuse too?

  12. not free markets by any stretch by magarity · · Score: 1

    Before anyone rants about how this is an example of how free markets stink, let us be reminded that a key ingredient to free markets, whether they are the sales of the good or the hiring of the labor, is accurate information. Neither the laborers selling their labor nor the customers making the final purchases were much aware of what was going on here until it was too late. In a free (labor) market these people wouldn't be conned into slavery working there in the first place

    1. Re:not free markets by any stretch by Anonymous Coward · · Score: 0

      Actually markets only work on the basis of opaqueness of information. If you had perfect pricing information what would happen is you would have a situation where no one makes an economic profit in the long term. It's arbitrage -- the ability to buy something for less than what you think you can sell it for that drives markets. If the other guy knew your margins or knew he was selling for less than what you were going to get he would either not participate or demand a higher price. OEMs would lose their entire profit to their suppliers. This is just an extreme example of opaqueness.

    2. Re:not free markets by any stretch by K.+S.+Kyosuke · · Score: 1

      Actually markets only work on the basis of opaqueness of information.

      Maybe the opaqueness of some information is permissible, but free market definitely requires a lot of transparent information. Perfect competition requires perfect information. So this is actually an example of market failure.

      --
      Ezekiel 23:20
    3. Re:not free markets by any stretch by Anonymous Coward · · Score: 0

      Perfect competition = no economic profit in the long term. If we had perfect competition everyone would actually drop out of the market. It's the imperfection of competition and the promise of long term economic profits that drives market participation.

    4. Re:not free markets by any stretch by Hognoxious · · Score: 1

      Fucking rubbish. I would say you're a DeVry grad, but maybe you're a professor at Trump-U.

      If I'm away in some city I don't really give a fuck what a hotel's margins are - the decision weighs on whether I think it's worth paying the rate rather than sleeping in my car or under a bridge.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  13. Wow by Pollux · · Score: 3, Insightful

    I'm genuinely disappointed.

    I've seen numerous internet articles showing the wide array and quality of Samsung campuses in South Korea, and I've always told my friends and coworkers to buy Samsung, because you're buying Korean, and you're voting for a company with a good track record of clean production facilities and high wages for workers.

    I guess Samsung is just as bad as Apple. Or Nike. Or that company that built the Burj Khalifa. I wonder who built it...

    Wikipedia.org...Burj Khalifa...

    Oh, wait...

    Well, that just ruined my day.

    1. Re:Wow by Anonymous Coward · · Score: 0

      It's already a nightmare to verify where your components come from in the electronics industry. It's not a big surprise to any EE that Samsung can't control this deep in the supply chain, quite often it's near impossible to go more than two levels deep in supply chain verification actually.

  14. Trump! by Joe_Dragon · · Score: 1

    We need to do something about trade where works rights are not in place.

    1. Re:Trump! by sit1963nz · · Score: 1

      Well that excludes the US then too. American Farmers depend on undocumented immigrants that they exploit and abuse to keep costs down. Tipping is another excuse to pay some people less than the minimum wage And how many americans get and take 4 weeks of paid leave a year ?

    2. Re:Trump! by Princeofcups · · Score: 1

      We need to do something about trade where works rights are not in place.

      Like Walmart?

      --
      The only thing worse than a Democrat is a Republican.
    3. Re:Trump! by Hognoxious · · Score: 1

      We should do something about it - when it happens somewhere else. There, it's unfair competition and they're literally raping our lunch. Here, it's the free market gig economy and if you don't like it yurracormanust.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    4. Re:Trump! by jrumney · · Score: 1

      The problem is - how do you define workers' rights as being in place? Malaysia has all the right laws in place on paper. Company directors can in theory get the death penalty if they are found to be using trafficked labour (confiscating passports and paying below minimum wage are sufficient for this to be considered a human trafficking case, even if the victims were were issued proper visas and brought to the country legally, which would not be the usual case). And yet cases like this, much worse than this, are commonplace, and seldom prosecuted.

  15. Exploding batteries? by Narcocide · · Score: 1

    Could this be related?

    1. Re:Exploding batteries? by dasgoober · · Score: 1

      Yes, little notes asking for help were being concealed in the phones, which also caused the phones to catch fire and then explode..

  16. Re:Wait, I thought only Apple was ever guily of th by Hognoxious · · Score: 1

    The political science isn't.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  17. Re:Wait, I thought only Apple was ever guily of th by Anonymous Coward · · Score: 0

    A "constitutional monarchy" is not any kind of dictatorship. The Malaysian system has separation of powers following the American model (i.e. separation between executive, judicial, legislative branches), and the king is neither attached to, nor has any authority over, any of them.

  18. Re:Wait, I thought only Apple was ever guily of th by tlhIngan · · Score: 2

    Seriously though .... I'm not especially well versed in the details of Malaysian government, but it seems they're a Constitutional Monarchy.

    As an American citizen, I've never felt that comfortable with a monarchy or any kind of dictatorship securing the rights and freedoms of individuals. At best, a "benevolent dictatorship" is just a temporarily condition, happened upon by the citizens as "pure luck". A monarchy where the appointed king or queen follows a constitution is better, assuming a well written constitution. But again, enforcement of it would fall to the discretion of the ruler, vs. a whole system of checks and balances to help ensure some of it takes place EVEN if the leader isn't too keen on enforcing it.

    This unfortunate situation sounds like it's common practice in Malaysia right now, which tells me nobody with the ability to change it in government really has an interest in taking action to do so.

    No, there's no king or queen in Malaysia. There's a Prime Minister though. But while there are elections in Malaysia, it's widely believed they are rigged and the whole political process is corrupt. They would be closer to an Authoritarian Democracy.

    And the person in power stays in power - over 15 years ago, the opposition party leader was getting VERY popular with the people (who were sick and tired of the governing party). So just before the elections, said opposition leader is arrested and charged with homosexuality (and homosexual acts). Now, Malaysia is an Islamic country, so yes, they were forbidden.

    The key evidence though was a "semen stained mattress". Last I heard (a couple of years back) it's STILL being fought in the courts. And this was around 1998 or so. Effectively he's being jailed until he keels over.

    And the other part is who is allowed to vote - basically Malaysians (by race) only - if you're Chinese, Indian, etc., you're excluded from the vote.

  19. Re: Wait, I thought only Apple was ever guily of t by Anonymous Coward · · Score: 0

    You've got the vote part wrong there. Malaysian Chinese.... Malaysian Indian definitely do have a vote.. as do certain foreigners that are chartered in, handed ICs and told to vote.

  20. Re:Wait, I thought only Apple was ever guily of th by Anonymous Coward · · Score: 0

    While you're correct about the Authoritarian Democracy part, and the treatment of the former leader of the opposition, there is no exclusion of ethnicities from the right to vote. There is gerrymandering to ensure a larger number of rural (largely uneducated Malay) seats and fewer urban seats where the number of Chinese, Indian and educated Malay voters is larger. And there is a King of Malaysia - he is elected from a pool of 9 state Sultans every 5 years.

  21. Who cares? by RalphSlate · · Score: 1

    If it makes our goods cheaper, who cares what they do? Most people seem to agree that cheap goods should be the #1 concern. If slaves can make thing cheaper, the pain they feel isn't as bad as the savings everyone else gets. On average, we are all better off. /s

  22. Re: Wait, I thought only Apple was ever guily of t by Anonymous Coward · · Score: 0

    Thank you for clearing up the ignorance of the previous poster. Who obviously have no knowledge of what constitutional mornarchy means and draw all sorts of conclusions based on that. He probably doesn't even know UK is a constitutional monarchy system just like Malaysia.

    Malaysia does have a king. But the King have very limited powers just like UK. The difference from U.K. Is that the king is actually voted in by the council of rulers (state rulers) and serve limited terms. It's basically the state rulers taking turns to be king. That's because Malaysia is like a federation of states with their own "kings" then when they merge into Malaysia they agree to take turns to vote each other in as the ultimate king. In tradition, they usually just vote each states ruler in turns, but if they fell out with each other then they could vote against tradition.

    Additional correction thought.... the very popular opposition you refer to was actually the back then Deputy Prime Minister of the ruling party who fell out with the then PM and got charged with homosexuality then formed a new party and became opposition. Of course he continued to be charged with similar issues even after he became opposition (so you are not totally wrong there). Now the ex PM who the DPM fell out with has also quit the ruling party and started a new party and they are now on the same boat campaigning against the current PM.

  23. Re:Wait, I thought only Apple was ever guily of th by Anonymous Coward · · Score: 0

    The Malaysian system has separation of powers following the American model

    More like both Malaysia and America have separation of powers following the British model. Malaysia, as a Commonwealth country, did not get its system of government from the USA, despite the similarities in the flag designs and the makeup of both countries from states.

  24. Some info on the situation on foreign labour... by Anonymous Coward · · Score: 0

    So the passports r usually taken n held in a company safe somewhere for the basic reason that Malaysia has a large amount of illegal immigrants. Many many maids n factory workers come here n within a week run away. Extremely common (no really). Both the agent from the foreign country n the local agent suddenly are out the money n resources invested to do the paperwork n bring a person over.

    Regarding the fines, as related to the above, they don't want non serious workers to sign up n suddenly decide to go home. Its supposed to be stated clearly at the start of the recruitment. Some even require them to put up a bond (like from indonesia) due to higher risk of flight. ...

    I used to work at the back of my factory with my Nepalese workers and occasionally eat lunch with them some years ago. Very happy bunch of people, mostly hardworking. They LOVE working overtime (they know why they are here for) and enjoy taking the cheap public trains to the twin towers on the weekends.
    They get a paid return ticket to nepal every 2 years as per contract.
    Its not that bad as i know. But i work for a good company.

    (i can finally post something interesting to /. Yay)