Samsung Philippines Official Statement on alleged piracy of 700 TSI employees

Copied Verbatim from Samsung PH PR

OFFICIAL STATEMENT

Employees of Samsung Electronics Philippines Corp. (SEPCO), a division of Samsung Electronics, are facing charges of syndicated and large-scale illegal recruitment involving economic sabotage, estafa and theft filed by manpower agency Temps & Staffers Inc. (TSI). The charges stemmed from the alleged “piracy” of 700 of TSI’s employees by SEPCO.

SEPCO is engaged in the marketing and distribution of Samsung brand electronic products. It is not in the business of manpower recruitment of promo-merchandisers who are assigned to sell Samsung products to consumers as support to accredited Samsung dealers nationwide. SEPCO contracts third-party manpower agencies to supply the promo-merchandisers, which clearly constitutes no employer-employee relationship between SEPCO and the promo-merchandisers. At present, SEPCO engages the services of five (5) Filipino-owned manpower agencies to meet its requirements.

There is no truth to the allegation of “piracy”, as mentioned in newspaper articles. The contracts between TSI and its promo merchandisers is co-terminus with TSI’s contract with SEPCO. As early as June 13, 2010, TSI served termination notices to their promo-merchandisers effective June 30, 2010. Given this, the affected promo-merchandisers decided on their own whether to wait for a new job contract from TSI or seek employment elsewhere.

Samsung Electronics is committed to acting as a responsible corporate citizen in the Philippines. We conduct our operations in accordance with international labor standards and we maintain a rigorous compliance program.

Respect for our employees is one of our key business principles. We will provide them with our full legal support and assistance to clarify this matter.