Samsung Electronics (BC94.LON, 005930.KRX) is launching a large-scale inspection of its Chinese suppliers after the company said Monday that it found problems with working conditions at one of its subcontractors, The Wall Street Journal reported. Samsung said an audit of supplier HEG Electronics, a company that assemble mobile phones, uncovered “several instances of inadequate management and potentially unsafe practices,” including excessive overtime and inadequate safety measures. As a result, the company will send 100 of its employees to inspect conditions at its 105 Chinese suppliers. Samsung demanded that HEG immediately improve their working conditions and said contracts will be terminated with any Chinese supplier failing to comply with company guidelines. The HEG audit did not find any illegal workers under the age of 16 as the non-governmental organization Child Labor Watch had claimed after its own investigations in June and July.
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