Gen Z favourite and fast fashion Chinese company SHEIN is facing allegations against its business practices which involves 18-hour shifts, penalising employees and withholding salaries, according to an investigation by UK broadcaster Channel 4.
SHEIN, which also runs its operations in the UAE, was reported to penalise its employees by cutting two-thirds of their daily wage if they made a mistake on a clothing item.
Channel 4, sent an undercover worker to film inside two of SHEIN’s factories in Guangzhou.
According to a report in US-based magazine The Cut, “in one factory, Channel 4 found that workers receive a base salary of 4,000 yuan per month – roughly $556 – to make 500 pieces of clothing per day and that their first month’s pay is withheld from them; in another factory, workers received the equivalent of four cents per item. Workers in both factories were working up to 18-hour days and were given only one day off a month.”
As per China’s labour laws, the reported working hours and conditions have been violated.
SHEIN did not immediately respond to The Cut’s request for comment.
The fast fashion company had previously told Business Insider, “Any non-compliance with this code is dealt with swiftly, and we will terminate partnerships that do not meet our standards,” when it was accused of illegal labour practices in previous years.
The fashion company has surpassed global retail brands such as H&M and Zara, with a valuation of $100 billion in April, reportedly greater than that of the two combined.
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