Canada Probes Nike Over Forced Uyghur Labor Claims

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Facts

  • On Tuesday, Canada's corporate ethics watchdog launched separate investigations into allegations that sporting goods company Nike Canada and the mining firm Dynasty Gold used and benefited from forced Uyghur labor in China.1
  • The Canadian Ombudsperson for Responsible Enterprise's probe is based on complaints filed last year by a coalition of 28 civil society organizations about the overseas operations of 13 Canadian companies.2
  • While Nike Canada is suspected of having supply relationships with Chinese companies allegedly connected to Uyghur forced labor, Dynasty Gold is alleged to have benefited from it at a mine in the PRC in which it holds a majority interest.3
  • It's also alleged that Nike Canada had not taken "any concrete steps to ensure beyond a reasonable doubt that forced labor is not implicated in their supply chain."4
  • However, Nike Canada maintains that it no longer has any ties with the companies accused of using forced Uyghur labor, and Dynasty Gold asserts that the allegations arose after it left the region.5
  • The PRC has been repeatedly accused of detaining millions of Uyghurs and forcing the Muslim minority group to attend re-education detention camps in the northwestern region of Xinjiang. Beijing, however, denies the allegations.6

Sources: 1BBC News (a), 2Al Jazeera, 3Reuters, 4GAC, 5DW, and 6BBC News (b).

Narratives

  • Pro-establishment narrative, as provided by Reuters. The federal government has taken steps to eradicate forced labor from the country's supply chains — including enacting modern slavery laws and banning imports produced by forced labor — which is why allegations of using forced Uyghur labor in Canadian firms' supply chains and operations in China are particularly concerning and must be fully investigated. Canada is committed to respecting human rights in every market.
  • Establishment-critical narrative, as provided by The Breach. While there's evidence that the treatment of Uyghurs in China amounts to international crimes, particularly crimes against humanity, Canada has become a dumping ground for forced Uyghur labor products. With toothless laws, Ottawa's inaction, and a watchdog with no legal powers to prosecute even if companies are found guilty, businesses will continue to reap the benefits of supply chain complexities and escape punishment.

Predictions