Following the discovery of two instances of child labour in its supply chain, SHEIN has temporarily paused supplier orders. Prior to its first public offering (IPO) on the London Stock Exchange, the company is currently taking tough measures against its apparel producers.
The shop produces new clothes in a few of weeks by relying on thousands of contract manufacturers and third-party suppliers close to its Guangzhou headquarters. The working conditions that the company’s employees endure in factories that are part of its supply chain have drawn criticism.
“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 told the BBC.
SHEIN claimed to have strengthened its supplier policies after receiving criticism. It now guarantees that contracts will be immediately terminated for any violations involving forced labour or underage labour. In 2023, there were two cases discovered in the first three quarters, but none in the final quarter.
SHEIN faced criticism once more in May of this year when it was discovered that employees of some of its suppliers were continuing to put in 75-hour work weeks in spite of assurances that working conditions would be improved.
This announcement coincides with the company’s efforts to deflect criticism as it gets ready for a possible initial public offering (IPO) on the London Stock Exchange.
The retailer and its contentious business methods have gained attention due to the possible float.
