Shein reports 2 cases of child labor in its supply chain

Dive Brief:

• Shein found two cases of child labor in its supply chain last year, according to its annual sustainability and social impact report released Friday.
• The instances occurred from Q1 to Q3 of 2023, and upon discovery, the company said it suspended orders from the manufacturers and “undertook investigations.” The errant suppliers were given 30 days to remediate their offenses, Shein said. The company did not identify any cases of child or forced labor in Q4.
• Shein said it terminated contracts with the underage employees and confirmed payment of outstanding wages. The company added that it ensured its manufacturers strengthened their new hire screenings, and following “appropriate remediation, the contract manufacturers were permitted to resume business.”

Dive Insight:

Forced labor has long been the subject of increased skepticism toward Shein. U.S. lawmakers launched an investigation into the fast fashion giant over these concerns, and similarly asked the Securities and Exchange Commission to halt any potential IPO bid from Shein until it confirmed it didn’t use forced labor.

The cases of child labor were uncovered through the company’s Shein Responsible Sourcing (SRS) audits, which are conducted in partnership with third-party verification agencies, according to the report.

“We remain vigilant in guarding against such violations going forward, and in line with current policies, will terminate any noncompliant suppliers,” Shein said in the report.

A Shein spokesperson didn’t immediately respond to Fashion Dive’s request for additional comment.

Beyond forced labor and underage labor, Shein employee wages and working hours have also been a subject of concern. Earlier this year, environmental advocacy organization Public Eye released a report that found that Shein employees worked long hours for below a living wage. In response to that report, Shein said it was investing “tens of millions of dollars” into strengthening compliance across its supply chain.

In its recently released sustainability report, Shein said its policy requires suppliers to pay employees at least the legal minimum wage and compensate them for overtime. During the SRS audits, the company said auditors collect workers’ payslips and timesheets and interview workers about compliance with company policies.