Modern slavery claims could see US trade ban
THREAT TO BOOHOO’S AMERICAN MARKET WILL IMPACT CITY FIRMS
FASHION firm Boohoo and some of its suppliers - including those in Leicester - could be banned from exporting goods to the United States due to allegations over the use of slave labour.
US Customs and Border Protection believes it has grounds to launch an investigation into the company’s practices following a campaign by an organisation called Liberty Shared, which fights modern-day slavery.
Duncan Jepson, who runs the campaign, said Boohoo is not doing enough to stop the use of forced labour in the Leicester factories which make many of its clothes, according to reports by Sky News.
Mr Jepson told the broadcaster: “The evidence of Boohoo and forced labour is quite compelling.
“I think it will be a wake-up call for British institutions about how they’re handling modern slavery (and) enforced labour, particularly in a community like Leicester East.
“What we’d all like, those of us interested in improving labour conditions, is for Boohoo to really get to grips with governance of their supply chain to ensure there is no wage theft and people have proper contracts.
must look at all 11 indicators the International Labour Organisation sets out for forced labour and see there is compliance with those.” Last year Boohoo’s sales in the US were £263.6 million – more than a fifth of the company’s total revenue – according to Sky.
The UK’s former anti-slavery commissioner, Kevin Hyland, said: “If they do identify this in the supply chain in Leicestershire, the potential sanctions to not trade in the US are enormous.
“The aim of the petitions is very clear, that companies which think they can benefit from forced labour and the exploitation of others are shown that they cannot, and will face a sanction that they can’t trade in the world’s largest economy.
“But what it will do as well is create a gap for good businesses to come in and pay people properly.”
Last summer a Sunday Times investigation exposed evidence of illegally low wages and poor working conditions in Boohoo’s supply chain in Leicester, where 40 per cent of its clothes were reportedly being manufactured.
The government set up a multiagency task force, including the National Crime Agency, to investigate the claims.
Boohoo asked lawyer Alison Levitt QC to review the working practices of its clothing manufacturers and she produced a damning report which found the allegations of poor working conditions “substantially true”.
Her review prompted Home Sec“It retary Priti Patel to say: “I am deeply concerned by the findings in this review, of illegal and unsafe working conditions.”
Saeed Khilji, chairman of the Textile Manufacturers Association of Leicestershire, said a US import ban would hurt, but insisted factory working conditions had improved.
He said: “If the American government took action and if they have enough evidence to do that, yes there will be an effect, but I’m sure now on there won’t be a problem in Leicester. I’m 100 per cent confident.”
Boohoo told investors in a stock market announcement that it was confident with the actions it is taking to ensure its products meet customs criteria to halt items made using forced labour from entering the US.
The company said it was not aware of an investigation by the US authorities and said it was continuing to fulfil orders for US customers.
It said it would “work with any competent authority to provide assurance that products from its supply chain meet the required standard”, the Press Association reported.
In a statement, it said: “Over the past eight months the group has been working closely with UK enforcement bodies.
“If the group were to discover any suggestion of modern day slavery it would immediately disclose this to the relevant authorities.
“In addition, Alison Levitt QC’s independent review into Boohoo’s Leicester supply chain, published in September 2020, stated that ‘there is no evidence that the company itself or its officers have committed any criminal offences.’”
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If they do identify this in the supply chain in Leicestershire, the potential sanctions are enormous Kevin Hyland