Shein finds child labour cases as it steps up audits

Chinese-founded fastfashion giant Shein found two cases of child labour at its suppliers in 2023, 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 Aug 22 that 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 in October 2023 after the child labour 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.

Ms 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 moved its headquarters from China to Singapore in 2022.