Online fashion retailer Shein has disclosed two cases of child labour and multiple instances of suppliers failing to pay minimum wage in its 2023 sustainability report, as it seeks approval for a potential £50bn listing on the London Stock Exchange.
The admission comes amid calls from workers' rights campaigners for the UK government to oppose the listing, citing concerns over supply chain transparency and ethical practices. The British Fashion Council has also described the potential flotation as a 'significant concern' for the industry.
An investigation by Swiss non-profit Public Eye found workers producing garments for Shein routinely worked over 70-hour weeks, with allegations of forced labour in China's Uyghur region and a 'cavalier approach to design appropriation' leading to multiple lawsuits.
Shein tightened its supplier policies in October 2023, making child or forced labour violations grounds for immediate contract termination. The company suspended orders from the Chinese suppliers involved for 30 days, resuming business only after they implemented measures to prevent recurrence.
Shein's report stated that both child labour cases were 'resolved swiftly', including terminating underage employees' contracts, paying outstanding wages, arranging medical checkups, and facilitating repatriation. Additionally, 0.5% of suppliers audited failed to pay minimum wage, with Shein claiming all issues were addressed promptly.
The retailer, founded in China but now based in Singapore, reportedly filed papers for a London listing in June and secured Labour party support before the July election. Plans may include offering shares to shoppers, similar to Deliveroo's 2021 IPO.
