Fast fashion giant Shein uncovers cases of child labor in supply chain
Chinese fast-fashion giant Shein said it discovered two cases of child labor in its supply chain last year as it tightened oversight of the companies that make the clothes it sells.
The company said it has temporarily suspended orders from the suppliers involved and will not continue doing business with them until they have stepped up efforts to resolve the issue.
The revelation in Shein Sustainability Report 2023 is understood to be planning to sell shares on the stock market.
The company has been criticized for the working conditions workers face at factories in its supply chain.
“Both cases were resolved expeditiously, with remedial steps including terminating the underage employee, ensuring payment of any outstanding wages, arranging for medical examinations, and facilitating the repatriation of parents/legal guardians where necessary,” Shein said.
“After appropriate remediation, contract manufacturers were allowed to resume business.”
Shein said it has now tightened its supplier policies. Under the new regulations, any violation of child labor or forced labor becomes grounds for immediate termination.
The company said two of the cases were detected in the first nine months of 2023 and none were detected in the final quarter of the year.
The event comes as the company is laying the groundwork for a possible public offering of shares.
BBC understands that Shein filed initial paperwork to list in London earlier this year..
In June, Marco Rubio, a top Republican on the US Senate Intelligence Committee and an ally of Donald Trump, wrote to then-British Prime Minister Jeremy Hunt warning him of “serious ethical concerns” and Shein’s “deep ties to the People’s Republic of China”.
“Slave labor, sweatshops and business practices are the dark secrets behind Shein’s success,” Mr. Rubio wrote in his letter to Mr. Hunt.
At the time, a company spokesperson said: “Shein has a zero-tolerance policy on forced labor and we are committed to respecting human rights. We value transparency across our entire supply chain and require our contract manufacturers to source cotton only from approved regions.”
It was just a few weeks later a report published by Swiss advocacy group Public Eye said excessive overtime remains common for many workers in Shein’s supply chain.
Responding to the report, Shein told the BBC that they were “working hard” to address the issues raised by Public Eye and had made “significant progress in improving conditions”.
