Shein reveals child labor cases at its suppliers

Fast fashion retailer Shein found two cases of child labor at its suppliers last year, it said in its 2023 sustainability report, as it stepped up audits of manufacturers in China to assuage criticisms of its low-cost business model ahead of a planned flotation.

Shein said in the report on Thursday it had suspended orders from the suppliers that had employed children under 16, sourcing from them again only after they had strengthened their processes, including checking workers’ identity documents.

The company said both cases had been “resolved swiftly,” with remediation steps including ending underage employees’ contracts, arranging medical checkups, and facilitating repatriation to parents or guardians as necessary.

Shein tightened its supplier policy last October after the child labor cases were found, so that any severe breaches — called “Immediate Termination Violations” — would result in ending the relationship with the supplier immediately.

Previously, suppliers such as those that employed minors had 30 days to resolve the issue, failing which Shein would cut ties.

Annabella Ng, senior director of global government relations at Shein in Singapore, said the updated supply chain policy took into account feedback from regulators and suppliers.

The company had not previously reported the number of cases of child labor, citing only the percentage of audits that found minors in the workplace. That violation was found in 1.8% of supplier audits in 2021, 0.3% of audits in 2022, and 0.1% in 2023.

“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.

Shein, which has grown rapidly selling $5 tops