Canada probes Nike, Dynasty Gold over alleged use of forced labor in China By Reuters

By Ismail Shakil and Divya Rajagopal

OTTAWA (Reuters) -Canada’s corporate ethics watchdog on Tuesday launched separate investigations into Nike (NYSE:) Canada and Dynasty Gold to probe allegations that they used or benefited from forced Uyghur labor in their supply chains and operations in China.

The investigations were launched after an initial assessment of complaints about the overseas operations of 13 Canadian companies filed by a coalition of 28 civil society organizations in June 2022.

Complaints against the other 11 companies were still being assessed, with reports expected in the coming weeks, according to a statement from the Canadian Ombudsperson for Responsible Enterprise.

Nike Canada and Dynasty Gold are alleged to have or have had supply chains or operations in China identified as using or benefiting from the use of Uyghur forced labor, the Ombudsperson said in the statement.

Nike Canada and Dynasty Gold did not immediately respond to Reuters requests for comment.

The initial assessment into Nike details supply relationships with Chinese companies identified as using or benefiting from the use of Uyghur forced labor.

Nike maintains that they no longer have ties with these companies and provided the watchdog information on their due diligence practices, according to the watchdog’s statement.

The complaint against Dynasty Gold is that it benefited from the use of Uyghur forced labor at a mine in China in which the company holds a majority interest. Dynasty says it does not have operational control over the mine and that these allegations arose after it left the region.

“I have decided to launch investigations into these complaints in order to get the facts and recommend the appropriate actions,” Ombudsperson Sheri Meyerhoffer said in the 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,” Meyerhoffer said.