Proponents of workers’ rights have demanded that the upcoming UK government block Shein, an online fashion company, from listing in London on the FTSE, citing it as “yet another betrayal to working people everywhere and the planet.”
Labour Behind the Label’s campaigns head, Alena Ivanova, stated that the organization was “dismayed” to see that prominent British politicians were courting Shein’s £50 billion listing due to what she perceived to be a lack of supply chain transparency and ethical issues.
She cited reports alleging forced labor in the Uyghur region of China, an investigation conducted last month by the non-profit organization Public Eye, based in Switzerland, which found that workers producing clothing for Shein frequently work more than 70-hour work weeks, and the company’s “cavalier approach to design appropriation,” which has resulted in a number of lawsuits pertaining to purportedly copied clothing.
“Shein shouldn’t be rewarded with the credibility of being listed in the City, or anywhere else, given the lack of transparency in their supply chain and shocking reports of severe labor violations,” stated Mathias Bolton, head of commerce at UNI Global Union, which represents service industries worldwide.
The Singapore-based company was created in China and currently operates primarily from that country. There are rumors that it will soon produce documentation detailing its intention to float on the London Stock Exchange.
Reports from this past weekend, however, indicated that it might wait until September—after the election—to try to enter the London market, when a Labour government is anticipated to take office.
The British Fashion Council (BFC), whose members include Burberry, Mulberry, and Victoria Beckham’s fashion company, issued a warning that Shein’s planned float on the London Stock Exchange posed a “significant concern” to the sector, prompting the campaigners to voice their concerns.
The BFC’s chief executive, Caroline Rush, stated that the government would need to provide “greater clothing market regulation and due diligence to ensure a level playing field for all businesses in the sector” if it allowed Shein to join the British fashion community.
In remarks first published by the Mail on Sunday, she stated, “Whilst we appreciate that Shein has committed to meeting acceptable industry standards, questions remain about the ethicality and sustainability of a business model and supply chain that consistently undercuts British designers and retailers.”
“We have a zero-tolerance policy for forced labor, and we are committed to respecting human rights,” a spokeswoman for Shein stated. We have spent millions of pounds bolstering governance and compliance because we take supply chain transparency seriously.
The business said that “a consistent improvement in performance and compliance” was evident in its supplier audits, with “improvements in ensuring that workers are compensated fairly for what they do” among other things.
It stated that basic salaries at Shein supplier facilities in China were, on average, twice the local minimum wage, according to research done by independent auditors.
“It is not our intent to infringe anyone’s valid intellectual property and it is not our business model to do so,” Shein stated, adding that copyright infringement was taken seriously by the company.
The business responded, “As a global company serving customers across more than 150 countries, we believe it is healthy to attract scrutiny and transparency and we want to be held to the highest standards.” It had posted a Modern Slavery statement on its website, as required by UK legislation.
Some regard Shein’s potential listing in London as a ray of light for the City following the decision of several other large corporations to list elsewhere.
Jeremy Hunt, the chancellor, spoke with the company earlier this year, and Shein’s prospective London listing—possibly the largest stock market float in UK history—has garnered support from the Labour party.
But some prominent lawmakers have questioned the attempts to court Shein, voicing concerns about working conditions in its supplier chains, among them the leaders of three parliamentary committees.
As the party views “raising investment, productivity and growth” as a crucial goal for the government, Labour said it had spoken with Shein. It also stated that it expects “the highest regulatory standards and business practices from any company operating in the UK.”
