Chinese fast fashion giant Shein said it discovered two cases of child labor in its supply chain last year as it stepped up scrutiny of companies that produce the clothing it sells.
The company said it has temporarily suspended orders from the suppliers involved and will not resume business with them until they step up to resolve the issue.
in Revelation Shein’s 2023 Sustainability Report It is understood that the company is planning to sell shares on the stock market.
The company has been criticized for the conditions faced by factory workers in its supply chain.
“Both cases were resolved expeditiously with remedial measures including terminating the minor employee’s contract, ensuring payment of all unpaid wages, arranging medical examinations and assisting with the repatriation of the parent/legal guardian as needed,” Shein said.
“After appropriate remediation, contract manufacturers were allowed to resume operations.”
Shein said supplier policies have been tightened. Under the new regulations, any child labor or forced labor violations will be grounds for immediate termination.
The move comes as the company lays the groundwork for a possible stock market sale.
The British Broadcasting Corporation (BBC) understands, Shein filed preliminary documents for a London listing earlier this year.
In June, Marco Rubio, the leading Republican on the U.S. Senate Intelligence Committee and an ally of Donald Trump, wrote to then-British finance chancellor Jeremy Hunt warning him of “serious ethical concerns” and of Shein’s “Deep ties with the People’s Republic of China”.
“Slave labor, sweatshops and trade tactics are the dirty secrets behind Shane’s success,” Rubio wrote in a letter to Hunter.
At the time, a company spokesperson said: “Shein has a zero-tolerance policy against forced labor and we are committed to respecting human rights. We take transparency throughout our supply chain seriously and we require our contract manufacturers to only source cotton from approved regions.”
That was a few weeks later Report published by the Swiss advocacy group Public Eye Shein said excessive overtime is still common for many workers in Shein’s supply chain.
Responding to the report, Shein told the BBC it was “working hard” to address issues raised “in the public eye” and had “made significant progress in improving conditions”.
