US electronics firm struck deal to transport and hire Uyghur workers

By Cate Cadell

QINZHOU, China (Reuters) -U.S. remote-control maker Universal Electronics (NASDAQ:) Inc told Reuters it struck a deal with authorities in Xinjiang to transport hundreds of Uyghur workers to its plant in the southern Chinese city of Qinzhou, the first confirmed instance of an American company participating in a transfer program described by some rights groups as forced labor.

The Nasdaq-listed firm, which has sold its equipment and software to Sony (NYSE:), Samsung (KS:), LG, Microsoft and other tech and broadcast companies, has employed at least 400 Uyghur workers from the far-western region of Xinjiang as part of an ongoing worker-transfer agreement, according to the company and local officials in Qinzhou and Xinjiang, government notices and local state media.

In at least one instance, Xinjiang authorities paid for a charter flight that delivered the Uyghur workers under police escort from Xinjiang’s Hotan city – where the workers are from – to the UEI plant, according to officials in Qinzhou and Hotan interviewed by Reuters. The transfer is also described in a notice posted on an official Qinzhou police social media account in February 2020 at the time of the transfer.

Responding to Reuters’ questions about the transfer, a UEI spokeswoman said the company currently employs 365 Uyghur workers at the Qinzhou plant. It said it treated them the same as other workers in China and said it did not regard any of its employees as forced labor.

Sony Group Corp, Samsung Electronics (OTC:) Co Ltd, LG Corp and Microsoft Corp (NASDAQ:) each say in social responsibility reports they prohibit the use of forced labor in their supply chains and are taking steps to prevent it.

Sony declined to comment on specific suppliers. In a statement to Reuters, it said if any supplier is confirmed to have committed a major violation of its code of conduct, which prohibits the use of forced labor, then “Sony will take appropriate countermeasures including request for implementing corrective actions and termination of business with such supplier.”

A Microsoft spokesperson said the company takes action against any supplier that violates its code of conduct, up to termination of its business relationship, but that UEI was no longer an active supplier. “We have not used hardware from the supplier since 2016 and have had no association with the factory in question,” the spokesperson said.

A Samsung spokesman said the company prohibits its suppliers from using all forms of forced labor and requires that all employment be freely chosen. He declined to comment on UEI.

LG did not reply to requests for comment.

The UEI spokeswoman said the company covers the cost of the transfer of workers to its Qinzhou plant from a local airport or train station in Guangxi, the region…