Levi’s says forced labour investigation based on ‘outdated’ information | Retail News Canada

Canada’s corporate watchdog, the CORE (Canadian Ombudsperson for Responsible Enterprise), has commenced an investigation into Levi Strauss Canada concerning alleged supply chain ties with Chinese companies linked to Uyghur forced labour, despite claims by Levi’s that the information is based on outdated data.

The CORE’s decision to investigate follows an initial assessment report conducted in response to a complaint filed by a coalition of 28 civil society organisations last June. This coalition, which includes entities like Stop Uyghur Genocide Canada, the Uyghur Refugee Relief Fund, and the Uyghur Rights Advocacy Project, also filed similar complaints against the Canadian subsidiaries of Nike, Ralph Lauren, Diesel, Hugo Boss, and Walmart. These complaints prompted further inquiries into the operations of these companies.

The complainants relied on reports from the Australian Strategic Policy Institute and Sheffield Hallam University’s Helena Kennedy Centre for International Justice. These reports connected Levi Strauss & Company to suppliers such as Jiangsu Guotai Guosheng Co., Jiangsu Lianfa Textile Co., Huafu Fashion Co., Luthai Textile Co., and Xinjiang Zhongtai, alleging their involvement in state-sponsored labour transfers and the use of Xinjiang cotton, which constitutes a significant portion of China’s cotton supply. The complaint noted that some of these relationships are not direct but involve intermediaries from countries like India and Vietnam.

Levi’s has challenged the accuracy of this evidence, stating that it has no commercial relationships with the five named suppliers. During the initial assessment with the CORE, Levi’s dismissed the allegations, attributing them to “outdated and inaccurate data from 2017-2019” included in reports published in 2020 and 2021. It also argued that two of the allegations stem from suppliers self-reporting their connection with Levi’s for marketing purposes rather than being based on actual relationships or facts.

Notably, Levi Strauss Canada did not participate in an initial assessment meeting with the CORE and did not provide information to substantiate its response to the allegations. Additionally, mediation between the company and the complainants, who assert that Levi’s has not adequately addressed the alleged use of Uyghur forced labour in its supply chain, is not currently an option.

CORE’s head, Sheri Meyerhoffer, stated, “Considering the complex nature of garment supply chains and gaps in the information provided in the complaint, I have decided to launch an investigation. An investigation will allow us to review the facts independently.”