July 12 (UPI) — Canadian regulators have initiated separate investigations into Nike Canada and Dynasty Gold following claims that their supply chains and operations benefit from or utilize forced labor among the Uyghur minority in China.
The investigations were announced in response to allegations lodged against various Canadian companies by a coalition of 28 human rights organizations in 2022. The Canadian Ombudsperson for Responsible Enterprise released preliminary findings on two complaints and stated that further assessments would be made in the coming weeks.
The assessments revealed specific accusations against Nike Canada, including its association with Chinese suppliers implicated in Uyghur forced labor. Dynasty Gold, on the other hand, is alleged to have benefitted from forced Uyghur labor at a mine in northwest China.
Ombudsperson Sheri Meyerhoffer emphasized that the investigations will provide a comprehensive understanding of the situation before making any recommendations. She reiterated the commitment to impartially address human rights complaints and promote responsible business practices.
Both Nike Canada and Dynasty Gold have denied the allegations. Nike stated that it no longer has ties with the implicated Chinese companies, while Dynasty Gold claimed it ceased operations in the region before the accusations were made.
The complaint against Nike accuses the company of maintaining relationships or supply chain links with six Chinese suppliers identified by the Australian Strategic Policy Institute and Sheffield Hallam University as utilizing forced Uyghur labor. The complaint alleges that Nike has not taken sufficient measures to ensure the absence of forced labor in its supply chain.
One of the suppliers, Qingdao Taekwang Shoes, employs Uyghur workers who attend coercive “vocational training” and “patriotic education” classes. Haoyuanpeng Clothing Manufacturing, which advertises its connection to Nike, exports Uyghur workers to its headquarters and factory, both involved in exploiting Uyghur labor.
Nike is also accused of importing shipments from Esquel Textile, a company known to utilize Uyghur forced labor. Similarly, its relationship with Huafu Fashion and Texhong Textile raises concerns about Xinjiang cotton and state-sponsored labor transfers.
The complaint highlights Nike’s failure to respond to requests for human rights due diligence and the severing of ties with implicated Chinese companies. Nike previously denied any involvement with three of the suppliers, stating efforts to ensure the exclusion of Xinjiang-sourced materials.
The complaint against Dynasty Gold focuses on allegations of Uyghur forced labor at its Hatu gold mine. Despite ongoing legal disputes over ownership and operational control, the complainants argue that the company is responsible for ensuring the absence of forced labor in its overseas mining operations.
With limited information on Dynasty Gold’s due diligence activities, it is suspected that the company has not adequately addressed the risks associated with forced labor. The complainants urge Dynasty Gold to bolster its human rights due diligence efforts.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
