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Canadian ethics czar opens forced-labour probes against 3 big companies

Walmart, Hugo Boss, Diesel need to demonstrate products are free of slave labour: Ombudsperson
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Canadian Ombudsperson for Responsible Enterprise (CORE), Sheri Meyerhoffer, holds a news conference in Ottawa on Tuesday, July 11, 2023. Canada91裸聊视频檚 corporate-ethics watchdog has announced an investigation into whether Walmart, Hugo Boss and Diesel have forced labour in their supply chains. Sheri Meyerhoffer, who is the Canadian Ombudsperson for Responsible Enterprise, issued three reports Thursday that say each company hasn91裸聊视频檛 done enough to demonstrate the products they sell in Canada are free of slave labour. THE CANADIAN PRESS/Sean Kilpatrick

Canada91裸聊视频檚 corporate-ethics watchdog is investigating if Walmart, Hugo Boss and Diesel have forced labour in their supply chains.

Sheri Meyerhoffer, the Ombudsperson for Responsible Enterprise, issued three reports today saying none of the companies have done enough to demonstrate the products they sell in Canada are free of slave labour.

The Canadian subsidiaries of all three companies are accused of relying on suppliers who source materials from Uyghur people forced to work in China91裸聊视频檚 Xinjiang region.

Walmart Canada Corp.,Hugo Boss Canada Inc.and Diesel Canada Inc.all say they uphold strong anti-slavery protocols and investigate the source of their products, but Meyerhoffer said none provided enough information about specific allegations.

She said the main challenge is that products from Xinjiang are often processed in other countries, meaning that imports from countries like Vietnam could involve forced Chinese labour if they91裸聊视频檙e not carefully traced.

Meyehoffer said she91裸聊视频檚 probing Walmart Canada because the company would only say that it avoids forced labour and had removed products made in Xinjiang from its stores. The company did not respond to documented allegations that Walmart is relying on specific clothing and textile firms that operate in that region using forced Uyghur labour.

91裸聊视频淲hile Walmart Canada generally denied the allegations in the complaint, it did not provide a specific response,91裸聊视频 Meyerhoffer wrote, noting that Walmart opted against a dispute-resolution process.

Meyerhoffer noted that Hugo Boss doesn91裸聊视频檛 seem to use the level of fibre-tracing technology needed to ensure due diligence in a region widely exposed to cotton from Xinjiang.

In its response, the company noted it scrutinizes its 91裸聊视频渄irect suppliers,91裸聊视频 which concerned Meyerhoffer since its goods from Vietnam or Singapore could rely on various Chinese materials. 91裸聊视频淗ugo Boss91裸聊视频 response does not appear to consider fully the complex nature of the garment supply chain,91裸聊视频 she wrote.

Hugo Boss also noted a European rights group failed to gather enough evidence to convince German courts to hear allegations the firm had illegally benefited from Uyghur forced labour.

Meanwhile, Meyerhoffer took Diesel to task over what she deemed to be vague statements about its internal reviews of its supply chains, which she said didn91裸聊视频檛 indicate the timeline, scope or findings of such a review.

She noted the company91裸聊视频檚 insistence that it doesn91裸聊视频檛 source cotton from the Xinjiang region isn91裸聊视频檛 sufficient to ensure suppliers in other countries aren91裸聊视频檛 using such fibres.

91裸聊视频淒iesel Canada provided two brief responses to the complaint, did not provide any response to multiple requests for an initial assessment meeting and did not provide any comments on the draft initial assessment report,91裸聊视频 reads Meyerhoffer91裸聊视频檚 report.

91裸聊视频淒iesel Canada91裸聊视频檚 failures to respond 91裸聊视频 and to engage with the CORE for an initial assessment meeting raise questions about its transparency.91裸聊视频

Meyerhoffer said all three companies did not comply in her investigations.

She wrote that Walmart Canada questioned her jurisdiction, and provided general information that didn91裸聊视频檛 speak to the specific allegations. 91裸聊视频淭he company representatives also questioned what Walmart Canada would have to gain from participating in the process,91裸聊视频 Meyerhoffer wrote.

Hugo Boss took issue with an April 2022 media report that named the firm among 14 companies in a complaint alleging the use of forced labour in China. The company claimed that the media report violated the ombudsperson91裸聊视频檚 rules on confidentiality, and requested the complainants and Meyerhoffer sign a non-disclosure agreement.

The company also took issue with Canada91裸聊视频檚 freedom-of-information laws, which allow Canadians to learn about the workings of their government but generally exempt confidential corporate information. Hugo Boss 91裸聊视频渄id not respond to multiple requests to meet,91裸聊视频 Meyerhoffer wrote.

Her office says Hugo Boss was the only firm she91裸聊视频檚 investigated so far that raised issues with the April 2022 media report, and she said the company refused offers to meet until Meyerhoffer had drafted a report.

The Canadian Press has reached out to all three firms for comment.

A spokeswoman for Walmart Canada noted that none of the subsidiaries named in the complaint 91裸聊视频渁re in our active disclosed supply chain.91裸聊视频

91裸聊视频淥ur policies are diligently enforced,91裸聊视频 wrote Sarah Kennedy. 91裸聊视频淲almart Canada respects CORE91裸聊视频檚 mandate and will continue to ensure our standards and corporate mandate are being upheld.91裸聊视频

Hugo Boss reiterated much of its response to Meyerhoffer, with spokesman Matthias Jekosch noting the company no longer buys from the Chinese supplier cited in the complaint.

91裸聊视频淗ugo Boss does not source any goods in its direct supply relationship that originate from the Xinjiang region,91裸聊视频 he wrote. 91裸聊视频淎s a matter of principle, we do not tolerate forced or compulsory labour or any form of modern slavery.91裸聊视频

All seven of the initial assessments the ombudsperson has announced so far relate to accusations of forced labour involving the Uyghur people.

The Chinese embassy in Ottawa maintains that Beijing does not allow modern-day slavery, and that claims otherwise are based on lines meant to constrain China91裸聊视频檚 development.

The United Nations found in mid-2022 that China had committed 91裸聊视频渟erious human rights violations91裸聊视频 against Uyghurs and other Muslim communities that 91裸聊视频渕ay constitute international crimes, in particular crimes against humanity.91裸聊视频 Beijing has disputed this report.

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