Canada Investigates Nike Canada and Dynasty Gold for Alleged Use of Forced Uyghur Labor in China

Canada's corporate ethics watchdog has initiated separate investigations into Nike Canada and Dynasty Gold to examine allegations of their involvement in or benefit from forced Uyghur labor in China. These investigations follow an initial assessment of complaints filed by a coalition of civil society organizations regarding the overseas operations of 13 Canadian companies.

Background on Uyghur Labor Concerns:

The U.N. human rights chief's report last year raised concerns about China's treatment of Uyghurs, a Muslim ethnic minority, suggesting that it may constitute crimes against humanity. Beijing has repeatedly denied the use of forced labor against Uyghurs and emphasized the protection of workers' rights in Xinjiang.

First Investigation by Canadian Agency:

This marks the first investigation conducted by the Canadian Ombudsperson for Responsible Enterprise (CORE) since the launch of its complaint mechanism in 2021. No other Canadian agencies have previously launched investigations of this nature.

Status of Other Complaints:

Assessments of the remaining 11 companies' complaints are still ongoing, with reports expected to be released in the coming weeks, according to CORE's statement.

Allegations Against Nike Canada and Dynasty Gold:

Nike Canada and Dynasty Gold are specifically accused of having supply chains or operations in China associated with the use or benefit from Uyghur forced labor, according to the Ombudsperson's statement. Dynasty Gold has denied the allegations, deeming them unfounded, while Nike Canada has not yet responded to requests for comment.

Objective of the Investigations:

The Ombudsperson, Sheri Meyerhoffer, emphasized that the investigations' outcomes have not been prejudged, and the final reports with recommendations will be published. The agency expresses concerns about how the companies have chosen to address these allegations.

Role and Actions of CORE:

CORE, established in 2017, monitors and investigates human rights abuses primarily by Canadian companies in the garment, mining, and oil and gas sectors operating overseas. CORE lacks legal powers to prosecute, but it can refer findings to a parliamentary committee for further action if companies are found guilty.

Broader Context:

In recent years, several large multinational companies from the United States and Canada have faced accusations of involvement with Uyghur forced labor in their supply chains. Earlier this year, U.S. representatives urged the U.S. Securities and Exchange Commission to halt the initial public offering of Chinese-founded company Shein until clarifications were provided regarding its use of forced labor.

Specifics of the Investigations:

The initial assessment into Nike Canada focuses on the company's supply relationships with Chinese entities associated with Uyghur forced labor. Nike maintains that it has severed ties with these companies and has provided the watchdog with information on its due diligence practices.

Regarding Dynasty Gold, the complaint alleges that the company benefited from Uyghur forced labor at a mine in China where it holds a majority interest. Dynasty Gold stated last year that it does not have operational control over the mine and that the allegations arose after its departure from the region.