Walmart, Diesel and Hugo Boss face federal probe for alleged sale of items made with forced labour

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Walmart, Diesel and Hugo Boss face federal probe for alleged sale of items made with forced labour
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Ombudsperson for responsible enterprise is investigating whether the retailers are selling products made with the use of forced Uyghur labour in China

The federal watchdog is investigating all of the companies in response to complaints filed last year by a coalition of human rights groups. Those organizations asked for a probe into allegations that some products sold by 14 Canadian companies – most of them subsidiaries of large U.S. businesses – are made with forced labour in. CORE is expected to decide whether to investigate the remaining complaints in the coming weeks.

The complaint to CORE cited a March, 2020 Australian Strategic Policy Institute report, which identified two Chinese companies the group had found were operating factories in Walmart Canada’s supply chain. Those facilities, the report said, were subjecting Uyghurs to work under conditions “that strongly suggest forced labour.

CORE said Diesel Canada denies that it purchases material from Xinjiang or is involved in human rights abuses. But the company did not participate in an initial assessment process after the complaint was lodged, according to CORE. The watchdog said this raised questions about the degree of transparency in the company’s human rights due diligence practices.

Hugo Boss Canada denies the allegations, but, CORE said, its “response does not appear to consider fully the complex nature of the garment supply chain.” The watchdog said it has decided to conduct an investigation “using independent fact finding to consider these complexities as well as the indicators of risk relevant to working in high-risk contexts.”

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