Shein vows to invest $15m in factory worker standards

Chinese fashion retailer Shein has vowed to invest $15 m 12.2 m in improving standards at its supplier factories as it admitted working hours at two sites breached local regulations.

The online brand said an independent investigation, launched after allegations of labour abuse made in a recent UK documentary, had revealed that employees at two of its Chinese sites were working hours that were longer than allowed.

The staff at one of the factories were working up to 13 and-a-half hours a day, with two to three days off a month, while those at the second site were working up to 12 and-a-half hours a day, with no fixed structure for days off.

Shein said that these are significantly less than claimed in the documentary, but they are still higher than local regulations permit. Shein has cut orders from the manufacturers that operate the sites by three quarters and given them a deadline of 31 December to address their working hours or face possible further action.

The undercover investigation by Channel 4 employees at factories revealed they were working up to 18 hours a day, throughout weekends, and were paid as little as 3 p.a., with just one day off a month.

The documentary, called Untold: Inside the Shein MachineShein Machine, has seen the group come under heavy fire, with it recently launched a licensed collection with The Rolling Stones having its contract terminated over the allegations.

Shein denied the other allegations made over factory working practices in the documentary after the findings of the investigations commissioned by the firm and carried out by experts at Intertek and TUVR.

It said that wages at the Chinese factories at the centre of the claims were both significantly higher than the local minimum wage in Guangzhou and more than the average wage of workers in the region s clothing production sector.

It added that factories withhold workers'salaries or illegally deduct wages are untrue.

The firm denied that workers were only paid pence for each completed item, insisting that they were paid for each step of the garment's production process.

It comes after Shein is said to be selling hundreds of products for just 1 p. over Black Friday, and shines the light on working practices in budget clothing retail.

Shein said it would see hundreds of factories upgraded over the next three to four years and that it will double its spending on responsible sourcing to $4 m 3.3 m a year.

This will allow it to increase spot checks and invest more in training suppliers to meet its code of conduct rules.

Adam Whinston, global head of ESG environmental, social and governance for Shein said: Through Shein s responsible sourcing of SRS, we have been working diligently with our contracted partners to improve welfare and working conditions.

We are looking to double our investment in the SRS programme to improve supplier management.