Mobile handset manufacturer Motorola has confirmed that one of its second-tier suppliers has broken Motorola's guidelines for supplier conduct and says that it will make relevant rules to regulate the future behavior of its suppliers.
Shenzhen Hivac-Startech Film Technology Company, a high-tech corporation which specializes in the manufacture of film equipment and vacuum photo film material, is also a supplier of film material to one of Motorola's suppliers. Several days ago, it was reported that nine workers at Hivac-Startech had fallen sick after coming into contact with toxic chemicals. A female worker reportedly also suffered a miscarriage from complications caused by the poisonous chemicals.
Upon learning of the workers' allegations, Motorola says it immediately retained an independent, third-party audit firm to conduct a detailed corporate responsibility audit of labor, health, safety and environmental conditions at Hivac-Startech as well as numerous employee interviews.
Motorola says it continues to work with both its direct suppliers and second-tier suppliers like Hivac-Startech to ensure an appropriate and thorough response to issues identified in the audit's findings as well as a workplace that complies with labor rights and standards consistent with the Motorola Business Conduct Expectations for Suppliers policy, which includes requirements relating to compliance with laws, anti-discrimination, humane treatment of workers, safe and healthy working conditions, freedom of association, and working hours and wages.
A spokesperson from Motorola China says many of the health and safety issues identified by the workers already have been addressed. Specifically, Hivac-Startech was using n-hexane to clean lenses prior to packing for shipment. Motorola verified during a follow-up visit in November that Hivac-Startech now is using an off-the-shelf Pledge-brand furniture cleaner and a locally sourced, alcohol-based cleaner to complete the procedure.
Because Motorola was concerned about the nine women who wrote to them, they say they asked an independent, third-party audit firm to interview the women to better understand the situation. According to the Motorola spokesperson, the women were very cooperative and helpful.
Motorola has verified that Hivac-Startech paid all related medical treatment expenses to the hospital and provided regular wages with allowance to the affected workers. Motorola says it also learned that all nine workers have independently reached settlement agreements for compensation relative to this situation with Hivac-Startech.
A new research report from the Centre for Research on Multinational Corporations shows that there are often poor working conditions in China among the suppliers of the five main handset manufacturers Nokia, Motorola, Samsung, Sony Ericsson and LG. The report says that there are often no proper measures taken to ensure the security and health of workers, nor the special training offered to workers before they touch harmful chemicals at these suppliers. Though the five handset manufacturers have issued rules and regulations, the suppliers, especially the second or third-tier ones, seldom maintain them, leading companies like Motorola to always keep a watchful eye to ensure full compliance.
Established in 1973, the Centre for Research on Multinational Corporations (SOMO) is a Dutch non-profit research and advisory bureau. SOMO investigates the consequences of Multinational Enterprises' policies and the consequences of the internationalization of business, particularly for developing countries.
