Popular Online Retailer Admits Cases of Child Labor Found in Its Supply Chain
Shein, the fast-fashion retailer, reported two instances of child labor within its supply chain in its recent sustainability report. The company, which sources primarily from China, discovered minors under 15 working for its manufacturers. Upon learning of these cases, Shein suspended orders from the involved suppliers and resolved the issues swiftly by terminating contracts with underage workers and ensuring they received any owed wages.
Shein has faced scrutiny from advocacy groups like Amnesty International UK, especially regarding potential listings on the London Stock Exchange, citing labor and environmental concerns. The company has also reportedly sought a confidential IPO with the U.S. Securities and Exchange Commission in the past year. In response to the child labor incidents, Shein updated its policies in October 2023, shifting from a 30-day remediation period for violations, to an immediate termination of relationships with suppliers found engaging in such practices.
Fast-fashion giant Shein said it discovered two cases of child labor in its supply chain last year.
In its annual sustainability report, Shein disclosed this week that it found minors under age 15 employed by manufacturers that make products for the company. Shein, which mainly sources its products from China, did not say where it found the child labor cases.
The company said it suspended product orders from the suppliers when it discovered the violations. Both cases were resolved “swiftly” and involved remediation steps, such as ending contracts with underage employees and paying them any outstanding wages, Shein said. The online retailer resumed working with the manufacturers after they strengthened screening for new hires.
The disclosure comes as some advocacy groups – such as Amnesty International UK – are pushing back on a possible listing of Shein on the London Stock Exchange due to labor and environmental concerns.
The company, which was founded in China, but is now based in Singapore, had also reportedly attempted to file a confidential IPO application to the U.S. Securities and Exchange Commission last year.
Shein said in its report that it updated its policies around labor violations in October 2023.
Before, suppliers engaging in practices like child or forced labor had their orders suspended and were given 30 days for remediation. Now, the company says it will “immediately proceed to terminate” ties with suppliers who engage in these violations.
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