"Uniqlo parent to audit working conditions at third-tier suppliers" 5 April 2023

Uniqlo owner Fast Retailing has decided to inspect third-tier suppliers of clothing materials for working conditions and human rights compliance, extending checks currently run on higher-tier suppliers.

The Japanese company will apply its code of conduct to third-tier spinning mills that supply cotton threads for Uniqlo products, having them sign consent forms.

For example, third-tier suppliers will have to ensure that fire prevention measures are in place for buildings and that safety measures are in place for machinery. Weekly working hours for a laborer, including overtime, will not exceed 60.

Third-party investigators will check the suppliers roughly once a year for compliance with the code of conduct.

If a third-tier supplier is flagged as needing improvement, random follow-up audits will gauge progress.

Going forward, Fast Retailing will launch similar compliance checks for spinning mills for other materials, such as cashmere and wool, as well as mills serving other group brands like GU and Theory.

Fast Retailing currently does compliance checks on first-tier sewing plants and second-tier fabric mills.

The apparel industry's complex web of suppliers ranges from farms that produce raw materials to factories that spin, weave and stitch them into clothing. Each step in the supply chain often involves entirely different operators.

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Fast Retailing is working on traceability for fourth-tier suppliers on down that collect cotton and remove seeds, but it has not been decided whether to conduct audits on those operators, according to the company.

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