News
| Dec 19, 2022

SHEIN pledges US$15 million to improve workers’ conditions after reports of exploitation

Tamoy Ashman

Tamoy Ashman / Our Today

Reading Time: 3 minutes
SHEIN’s first permanent physical location in Tokyo. (Photo: Inside Retail Asia)

Fast-fashion giant SHEIN is pledging US$15 million to improve conditions in its Chinese factories after an investigation proved that workers were being overworked and underpaid.

In a release by the company last week, it said the funds would go towards its newly established Supplier Community Empowerment Programme (SCEP). SHEIN will also seek to make physical enhancements to its factories.

SHEIN is an online clothing store based in China, shipping millions of its products globally. The company is particularly known for its inexpensive products that drive many people to its website.

The company gained traction in 2018, dominating the fast-fashion industry and seeing a swift rise in ecommerce.

According to an article by United Kingdom-based Observer, in addition to the US$15 million, SHEIN will also pledge $4 million to conduct spontaneous inspections, expanding its Responsible Sourcing programme. 

The information comes two months after an investigative series in the United Kingdom (UK), Untold: Inside the SHEIN Machine, revealed that workers at two factories in Guangzhou, China were being paid four cents per garment made.

Workers inside a SHEIN factory sewing garments for the fashion company. (Photo: The Business Fashion)

Workers were also doing 18-hour shifts with no fixed days off, a violation of Chinese labour laws.

There have been several reports of workers’ rights violations by the clothing company, but according to UK’s Observer this was the only report that it addressed in its press release.

SHEIN also conducted an investigation of its own, claiming the wages quoted in the investigative series were significantly less than what is actually paid to its workers.

The company, however, reportedly shut down operations at both factories until the matter is resolved.

Consumers continue to purchase

There are thousands of Jamaicans who purchase from SHEIN, with some opening clothing stores to re-sell the items bought.

SHEIN tag with the words ‘need your help’ printed in between washing directions. (Photo: RTL Infor)

When news about the allegations began to circulate, many Jamaicans on social media expressed that they would still continue to purchase items from SHEIN, because they are so inexpensive.

Among the allegations were videos circulating on social media with people sharing that the tags on their clothes had “help me” written on them. But this did not stop the consumers from making their purchases.

SHEIN’s revenue has steadily increased, with reports speculating the company’s valuation at US$100 billion.

Reports also arose that the company was exploiting child labour, to which some Jamaicans and others globally responded by saying they could only pray for the children.

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