Tech firms accused of child labour and exploitation

Kogan and Lenovo are among the 50 electronics companies that have failed to make the cut when it comes to looking after their workers' welfare, a charity group has claimed.

Both companies received a D grade in the latest installation of the 2016 Electronics Industry Trends report released by Baptist World Aid today.

When contacted by CRN, a Kogan spokesperson had no official comment on the matter while a Lenovo spokesperson did not come back in time for publication.

Baptist World Aid Australia’s advocacy manager, Gershon Nimbalker, said: “Forced labour, child labour and exploitation remain as significant problems in the supply chain of the electronics industry. This is the most valuable industry in the world, worth in the trillions. If anyone can afford to ensure they have an ethical supply chain, it’s our big tech companies.”

Now in its second year, the report graded 56 companies from A to F on the practices and policies these companies had in place to mitigate the risk of forced labour, child labour and exploitation. 

The grading reflects the levels of visibility and transparency the companies have across their supply chain.

Nimbalker added that the survey was conducted based on the readily available public information on these companies’ websites such as CSR reporting, as well as via personal approaches done via emails, letters and phone calls.

“Some companies were willing to engage with us while some didn’t. We have kept all the records on this,” he told CRN.

Nimbalker also noted that while 64 percent of companies showed some improvement since the report’s first release in 2014, not a single company had managed to improve its practices and policies enough to earn an A grade.

Some of the highest-rated companies included Acer, LG, Intel, Samsung, Microsoft and Motorola Mobility, which all received a B+.

“The median grade for the 2016 report was C, suggesting workers remain overworked and underpaid working long shifts with no overtime pay, little rest and wages so low families struggle to make ends meet. This lack of a living wage was a top concern as it meant workers still would not be able to afford the basics such as food, water, shelter and electricity,” Nimbalker said.

Baptist World Aid Australia is an international aid and development organisation, established in 1959. The organisation works in 17 countries in Asia, Africa and the Pacific across four key areas, child-centred community development, community development, disaster management and advocacy.

2016 Electronics Industry Trends report