Nike is investigated for using forced labor in China – 07/11/2023 – Market

Canada’s corporate ethics watchdog on Tuesday launched separate investigations into Nike Canada and Dynasty Gold into allegations that the companies used or benefited from Uighur forced labor in their supply chains and operations in China.

The investigations were initiated following an initial assessment of allegations about the overseas operations of 13 Canadian companies filed by a coalition of 28 civil society organizations in June 2022.

A report by the UN human rights chief last year said China’s treatment of the Uighurs, a mostly Muslim ethnic minority numbering some 10 million people in Xinjiang, in the country’s far west, could amount to crimes against humanity. . Beijing has repeatedly denied the use of forced labor against Uighurs.

This is the first investigation of its kind launched by the Canadian agency since launching its grievance mechanism in 2021. No other Canadian agency has opened such investigations in the past.

Complaints against the other 11 companies are still being evaluated, and reports are expected in the coming weeks, according to a statement from the corporate human rights watchdog Canadian Ombudsperson for Responsible Enterprise (Core).

Nike Canada and Dynasty Gold are accused of having or having had supply chains or operations in China identified as using or benefiting from the use of Uighur forced labor, the organization said in the statement.

Dynasty Gold said in an emailed response that the allegations are “utterly unfounded”.

Nike Canada did not immediately respond to Reuters requests for comment.

“I have not pre-judged the outcome of the investigations. We will await the results and publish final reports with my recommendations,” ombudsperson Sheri Meyerhoffer said in the statement, adding that the watchdog is “very concerned” about how these companies chose to respond to these allegations. .

The Core organization was launched in 2017 to monitor and investigate human rights abuses primarily by Canadian apparel, mining, and oil and gas companies operating overseas.