Shein said it was investing “tens of millions
of dollars” into strengthening compliance across its supply chain and released
an overview of its approach to supply chain governance.
Public Eye’s latest report was a
follow up to its previous investigation, “Toiling away for Shein,” which was published in 2021 and examined working
conditions in a Shein factory.
The 2021 report found that Shein factory employees
worked 75 hours a week, and the wages reported on Tuesday (21 May) were also
similar.
A living wage in China is about 6,512 yuan, per the
Asia Floor Wage Alliance. Public Eye said that because employees work more than 75 hours per week instead of 40 hours,
without overtime pay, their average salary is about 2,400 yuan per month.
“While we do not recognize many of the allegations
in this report, the discussion on working hours and wages raised by Public Eye
is important to us, and we have made significant progress on enhancing
conditions across our ecosystem,” a Shein spokesperson said in an email to
Fashion Dive.
The report says that Shein also
implements “rigid quality controls” among needleworkers.
Report authors stated that they saw toddlers and
young people in the workshops. Authors said teenagers “performed simple
tasks, such as packaging, or sat at the sewing machines themselves, instructed
by their parents, presumably to learn their trade,” although Shein has a strict zero tolerance policy for
child labor, per the report. Interviewees noticed an increase in the number
of surveillance cameras in and around suppliers, the report stated.
Authors also highlighted fire risks
in the factories because smoking bans weren’t enforced.
Public Eye’s report collected interviews from
employees across six factories in the Guangdong Province of China in summer
2023. The Shein spokesperson said that “though all voices in our supply chain
are important, this small sample size should be seen in the context of our
comprehensive ongoing process to continually improve our supply chain, which
involves engaging with thousands of suppliers and workers within the supply
chain.”
Beyond regulatory and government pressure, the
company has also faced legal challenges from individuals and competitors over
copyright infringement.
A group of independent artists sued the fast
fashion giant under federal racketeering laws last year, and the company is additionally
facing a class action lawsuit from other artists that claims
Shein has copyright infringement “baked into” its business model. Both Uniqlo and H&M have sued Shein in
international courts for similar claims. Meanwhile, Temu, perhaps Shein’s largest competitor, is suing
Shein for infringing on its intellectual property
rights as well as trying to “illegally interfere with Temu’s business.”