By C. Perera, JadeTimes News
Chinese fast fashion giant Shein has disclosed two incidents of child labor within its supply chain last year, as the company intensifies its oversight of the firms producing its clothing. In its 2023 sustainability report, Shein stated that it temporarily halted orders from the implicated suppliers, only resuming business after they had taken steps to address the issue.
This revelation coincides with Shein’s preparations for a potential stock market debut. The company has faced widespread criticism for the working conditions in factories tied to its supply chain.
In response to the child labor findings, Shein reported swift action, including the termination of contracts with the underage employees, ensuring all owed wages were paid, arranging medical examinations, and, where necessary, facilitating their return to their parents or legal guardians. Following these remediation efforts, the suppliers were allowed to continue doing business with Shein.
The company has since implemented stricter supplier policies, which now mandate the immediate termination of contracts in cases of child or forced labor violations. Shein noted that both child labor cases were discovered in the first nine months of 2023, with none detected in the final quarter of the year.
As Shein lays the groundwork for a potential stock market listing, reports suggest that the company filed initial documents for a London listing earlier in the year. In June, US Senator Marco Rubio raised concerns in a letter to then UK Chancellor Jeremy Hunt, criticizing Shein for its alleged use of "slave labor, sweatshops, and trade tricks" and highlighting the company's ties to China.
In response, a Shein spokesperson emphasized the company's zero tolerance policy towards forced labor and its commitment to human rights. They also noted that Shein closely monitors its supply chain and ensures that contract manufacturers source cotton only from approved regions.
These developments followed a report by Swiss advocacy group Public Eye, which highlighted the prevalence of excessive overtime for many workers in Shein's supply chain. Shein responded by affirming its commitment to improving conditions, stating it had made significant strides in addressing the concerns raised by the report.
