Forced Labor Allegations Prompt Investigation of Nike and Dynasty Gold
Canadian ethics watchdog, the Canadian Ombudsperson for Responsible Enterprise (CORE), has initiated investigations into Nike Canada and Dynasty Gold following allegations of their involvement or benefit from Uyghur forced labor in their Chinese operations. The investigations were launched based on complaints filed by a coalition of 28 civil society organizations, assessing the overseas operations of 13 Canadian businesses. Nike Canada is alleged to maintain supply chain relationships with Chinese companies that use or benefit from Uyghur forced labor. Nike, however, stated that it no longer has ties with those companies and provided information on its due diligence practices.
Dynasty Gold, on the other hand, is accused of benefiting from Uyghur forced labor at a Chinese mine where it holds a majority interest. The company responded by clarifying that it no longer has operational control over the mine and that the allegations arose after its departure from the region. The Canadian Ombudsperson, Sheri Meyerhoffer, stated that mediation between the involved parties is not currently an option. The investigations aim to gather facts and make appropriate recommendations based on the findings. The CORE's mission is to resolve human rights complaints impartially and promote responsible business practices among the companies involved.
On May 11, 2023, Canada passed the Fighting Against Forced Labor and Child Labor in Supply Chains Act, which requires Canadian businesses to demonstrate due diligence in minimizing the risks of forced and child labor in their supply chains.