The Canadian Ombudsperson for Responsible Enterprise (CORE) has launched on Tuesday investigations into Nike Canada and Dynasty Gold to probe allegations of using or benefiting from forced Uyghur labour in their supply chains and operations in China.
The investigations were launched following initial assessment of complaints about the operations of 13 Canadian companies filed by a coalition of 28 civil society organisations in 2022.
Nike Canada and Dynasty Gold are alleged to have had supply chains or operations in China identified as using or benefiting from the use of Uyghur forced labour, said CORE in a statement.
“I have not pre-judged the outcome of the investigations. We will await the results and we will publish final reports with my recommendations, CORE is very concerned about how these companies have chosen to respond to these allegations,” said Ombudsperson, Sheri Meyerhoffer in the statement.
China’s treatment of Uyghurs, a Muslim ethnic minority of 10 million in Xinjiang, may constitute crimes against humanity, according to a UN human rights chief report in 2022.
While Beijing denies the use of forced labour against Uyghurs, a stance backed by the Chinese embassy in Ottawa, stressing on the protection of workers’ rights of all ethnic groups Xinjiang.
This is CORE’s first investigation since its launched complaint mechanism in 2021, making it the first Canadian agency to launch such investigations.
The initial assessment of Nike details supply relations with Chinese companies that use or benefit from Uyghur forced labour, while Nike stated it no longer has any ties with these companies, providing CORE with information on its due diligence practices.
The complaint against Dynasty Gold claims it benefited from the use of Uyghur forced labour at a mine in China, which the company holds a majority interest in.
Dynasty Gold has denied the allegations, calling them unfounded, while stating a year ago that it does not have operational control over the mine, with the allegations surfacing following its departure from the region.
The Canadian corporate ethics watchdog is assessing the complaints against 11 other companies, and is expected to release reports in the upcoming weeks.
