Canada Initiates Investigations into Nike Canada and Dynasty Gold over Forced Uighur Labour Allegations

Canada’s corporate ethics watchdog, the Canadian Ombudsperson for Responsible Enterprise (CORE), has initiated investigations into Nike Canada and Dynasty Gold. These investigations are in response to allegations that the companies used or benefitted from forced Uighur labour in their operations and supply chains in China.

The decision to investigate these two companies follows a 2022 complaint by a coalition of 28 civil society organizations, which highlighted concerns about the overseas operations of 13 Canadian companies. This marks the first investigation of its kind by CORE since its complaint mechanism was introduced in 2021.

The United Nations human rights chief, in a report last year, raised the possibility that China’s treatment of Uighurs, a mainly Muslim ethnic group in Xinjiang, could amount to crimes against humanity. The Chinese government has consistently denied allegations of forced labour.

CORE’s investigation into Nike Canada revolves around the company’s supply relationships with Chinese firms suspected of using or benefitting from Uighur forced labour. Nike has stated that it no longer maintains ties with these companies and has provided information on its due diligence practices to CORE.

As for Dynasty Gold, the investigation focuses on allegations that the company benefitted from Uighur forced labour at a mine in China in which it holds a majority interest. Dynasty Gold has denied the allegations, stating that it does not have operational control over the mine and left the region before these claims emerged.

Sheri Meyerhoffer, the Ombudsperson, emphasized that CORE has not pre-judged the outcomes of these investigations and will publish final reports with recommendations based on their findings. While CORE cannot legally prosecute, it can refer cases to a parliamentary committee for further action if necessary.

This investigation aligns with growing international scrutiny of companies’ supply chains, especially concerning human rights abuses. Recently, US representatives called on the US Securities and Exchange Commission to halt the initial public offering of Shein until it clarified its stance on forced labour. The Chinese embassy in Ottawa has not commented on these developments.

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