China: Shein discloses two child labour cases in supply chain, reports temporary supplier suspensions & policy tightening ahead of potential IPO
"Shein reveals child labour cases at suppliers" 23 August 2024
Chinese fast fashion giant Shein says it found two cases of child labour in its supply chain last year as it tightens scrutiny of the companies that make the clothes it sells.
The firm says it temporarily suspended orders from the suppliers involved and did not resume business with them until they had stepped up efforts to tackle the issue.
The revelation in Shein's 2023 sustainability report comes as it is understood to be planning to sell shares on the stock market...
"Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups and facilitating repatriation to parents/legal guardians as needed," Shein said.
"Following appropriate remediation, the contract manufacturers were permitted to resume business."
Shein said it has now tightened its supplier policies. Under the new rules, any child labour or forced labour violations have become grounds for immediate termination of contracts.
The firm said the two cases were uncovered during the first nine months of 2023 and none were found in the last quarter of the year...