Chinese fast-fashion giant Shine announced two cases of child labor in its supply chain last year as it ramps up scrutiny of the companies that make the clothing it sells.
The company said it had temporarily suspended orders from the suppliers involved and would not resume trading until it had stepped up its efforts to address the issue.
The revelations in Shein’s 2023 Sustainability Report come amid knowledge that the company plans to sell its shares on the stock market.
The company has been criticized for the conditions faced by workers at factories in its supply chain.
“Both cases were quickly resolved and corrective measures were taken, including terminating the contracts of the minor employees, securing payment of unpaid wages, arranging for medical examinations, and facilitating repatriation to parents/legal guardians as appropriate. ” said Shane.
“After appropriate remediation, the contract manufacturer was allowed to resume operations.”
Shein said it is currently tightening its supplier policies. Under the new rules, violations related to child labor or forced labor are grounds for immediate termination.
The company said the two incidents were discovered in the first nine months of 2023 and none in the last quarter of this year.
This comes as the company lays the groundwork for a possible sale of its shares on the stock market.
The BBC understands that Shane filed initial documents for a London listing earlier this year.
In June, Marco Rubio, the ranking Republican on the U.S. Senate Intelligence Committee and an ally of Donald Trump, sent a letter to then-British Prime Minister Jeremy Hunt, citing “serious ethical concerns.” It warned of Mr. Shein’s “deep ties to the People’s Republic of China.” ”.
“Slave labor, sweatshops and trade fraud are the dirty secrets behind Shayne’s success,” Rubio wrote in a letter to Hunt.
At the time, a company spokesperson said: “Shane has a zero-tolerance policy against forced labor and is committed to respecting human rights. We take visibility across our supply chain seriously and require our contract manufacturers to only source cotton.” It is from an approved region. ”
It comes just weeks after a report published by Swiss advocacy group Public Eye said excessive overtime remained common for many workers in Schein’s supply chain.
In response to the report, Mr Shane told the BBC that he was “working hard” to address the issues raised by Public Eye and that there had been “significant progress in improving conditions”.
