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Canada probes Walmart, Hugo Boss over Uyghur labor concerns

August 25, 2023

Canada's corporate ethics watchdog will look into whether the companies used forced labor by China's Uyghur Muslims. Western governments have raised concerns about rights abuses faced by the minority community.

An employee operates a weaving loom at a textile factory in China's western Xinjiang region, March 31, 2021
The clothing industry with well-known links to China's western Xinjiang region has scrambled to find alternativesImage: VCG/imago images

Canadian authorities on Thursday opened an investigation into alleged human rights violations by the Canadian units of companies Walmart and Hugo Boss. 

The Canadian Ombudsperson for Responsible Enterprise (CORE), which reviews complaints of human rights abuses, was looking into allegations of forced labor in their supply chains.

The probe focuses on whether operations of the two companies were run or goods made with forced labor from China's Uyghur Muslims.

The companies denied the accusations and declined to participate in the ombudsperson's preliminary assessments of the claims.

Crackdown on Uyghurs in Xinjiang

Human rights groups and Western governments have repeatedly accused Chinese authorities of carrying out an extensive crackdown on Uyghur Muslims and members of other ethnic groups in the western Xinjiang region.

They say over a million Uyghurs and other mostly Muslim minorities in the province have been held in so-called re-education camps, with a slew of abuses that include forced labor.

The UN High Commissioner for Human Rights has referred to the treatment of Uyghurs as crimes against humanity. 

Former Uyghur detainees of internment camps

02:44

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Lawmakers in Western nations, including Canada, have called the crackdown in Xinjiang a genocide.

But the Chinese government denies the accusations. It describes the facilities in Xinjiang as vocational centers designed to curb extremism.

Nike Canada and Ralph Lauren under scrutiny

CORE was looking into complaints filed by a coalition of 28 civil society organizations in June 22.

CORE will also investigate the Canadian unit of fashion firm Diesel, which is owned by Italy's OTB. It has already launched similar probes into Nike Canada, Dynasty Gold and Ralph Lauren.

"As mediation between the parties is not currently an option, we will be launching investigations into the allegations outlined in these reports," said Sheri Meyerhoffer, CORE's ombudperson.

Walmart Canada said it does not tolerate forced labor of any kind in its operations.

rm/sri (Reuters, AFP)

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