Chinese fast fashion giant Shein has recently disclosed that it discovered two cases of child labor in its supply chain last year. This revelation comes as the company tightens its scrutiny of the companies that manufacture the clothes it sells. In response to these findings, Shein temporarily suspended orders from the suppliers involved and only resumed business with them once they had taken steps to address the issue.
According to Shein’s 2023 sustainability report, both cases of child labor were swiftly resolved. Remediation steps included terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups, and facilitating repatriation to parents or legal guardians as needed. The contract manufacturers were only permitted to resume business after appropriate remediation measures were implemented.
In an effort to prevent such incidents from occurring in the future, Shein has tightened its supplier policies. Under the new rules, any violations related to child labor or forced labor are now grounds for immediate termination of contracts. The company stated that the two cases of child labor were uncovered during the first nine months of 2023, with none reported in the last quarter of the year.
As Shein prepares for a potential sale of shares on the stock market, it faces scrutiny over the conditions faced by workers in its supply chain. In June, US Senator Marco Rubio raised concerns about Shein’s ties to China and alleged ethical issues, including slave labor and sweatshops. In response, Shein reiterated its zero-tolerance policy for forced labor and commitment to respecting human rights.
Despite these assurances, a report by Swiss advocacy group Public Eye highlighted ongoing issues of excessive overtime in Shein’s supply chain. Shein acknowledged the concerns raised in the report and stated that it was actively working to address them. The company claimed to have made significant progress in enhancing working conditions for its employees.
Overall, Shein’s acknowledgment of child labor in its supply chain underscores the importance of transparency and accountability in the fast fashion industry. As the company continues to grow and potentially go public, it will be crucial for Shein to uphold its commitment to ethical sourcing practices and ensure the well-being of workers throughout its supply chain.