The Canadian Ombudsperson for Responsible Enterprise (CORE) launched two investigations into allegations of Uyghur forced labor in the supply chains and operations of two Canadian companies, Nike and Dynasty Gold.
CORE alleged that Nike Canada Corp. (Nike) and Dynasty Gold Corporation (Dynasty Gold) have, or have had, supply chains or operations in the People’s Republic of China identified as using or benefitting from Uyghur forced labor.
The decision by Sheri Meyerhoffer, the Ombudsperson, to launch the investigations follows the completion of its Initial Assessment reports, published on July 11, 2023. These reports relate to two of thirteen admissible complaints about the overseas operations of Canadian companies. A coalition of 28 civil organizations filed the complaints in June 2022.
The Nike Canada Corp. Initial Assessment report details the allegation that Nike has supply relationships with Chinese companies identified as “using or benefitting from the use of” Uyghur forced labor. Nike maintains they no longer have ties with these companies and provided information on their due diligence practices.
The Dynasty Gold Corporation’s Initial Assessment report details the allegation that the Canadian mining company, Dynasty Gold, benefited from using Uyghur forced labor at a mine in China in which Dynasty Gold holds a majority interest. Dynasty Gold’s response to the complaint is that it does not have operational control over the mine and that these allegations came after it left the region.
As the two published reports identified, mediation between the parties involved in both complaints is not currently an option.
“I have decided to launch investigations into these complaints in order to get the facts and recommend the appropriate actions,” said Meyerhoffer. “I have not pre-judged the outcome of the investigations. We will await the results, and we will publish final reports with my recommendations.”
Concerning the remaining eleven complaints, the CORE said it would publish its Initial Assessment reports in the coming weeks with the Ombud’s decision on moving each complaint forward.
“It is our mission to resolve human rights complaints in a fair and unbiased manner in order to help those impacted and to strengthen the responsible business practices of the companies involved,” added the Ombudsperson.
Photo courtesy VCG/Imago