UK Lawmakers Question Shein and Temu on Labor Practices Amid IPO Preparations - PRESS AI WORLD
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UK Lawmakers Question Shein and Temu on Labor Practices Amid IPO Preparations

share-iconThursday, January 02 comment-icon2 weeks ago 10 views
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UK Lawmakers Question Shein and Temu on Labor Practices Amid IPO Preparations

Credited from: SCMP

Fast-fashion online retailer Shein, aiming for a London IPO, is set to face scrutiny from UK lawmakers on January 7. The Business and Trade Committee will question Shein regarding worker rights within its supply chain. This hearing is part of a broader inquiry launched in October into employment rights under the government’s flagship bill.

The committee, chaired by Liam Byrne, aims to address how to eliminate poor labor standards exacerbated by the import of goods from countries with questionable labor practices. Alongside Shein, Temu, a global marketplace owned by Chinese firm PDD Holdings, is also under investigation.

Both firms have come under fire for allegations of poor working conditions and potential forced labor in their supply chains. Shein's Yinan Zhu, the company's General Counsel for the EMEA region, will testify, along with senior executives from Temu.

Despite facing allegations, Shein and Temu have both pledged to uphold human rights. Shein maintains a strict zero-tolerance policy on forced labor, while Temu emphasizes its prohibition of such practices.

Founded in China and now headquartered in Singapore, Shein has experienced rapid growth across the UK, US, and Europe, awaiting regulatory approval for its initial public offering, filed with the UK's market regulator last June.

Margaret Beels, Director of Labor Market Enforcement at the Department for Business and Trade, is also slated to give evidence, along with Eleanor Lyons, Independent Anti-Slavery Commissioner, who previously voiced concerns about Shein’s IPO.

Among the notable figures called to offer testimony are Alistair Macrow, CEO of McDonald's UK and Ireland, and Claire Lorains, Technical and Sustainability Director at Tesco.

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