Canada probes Nike over alleged use of forced Uyghur labor

A corporate ethics watchdog in Canada launched separate investigations into sporting goods company Nike and the mining firm Dynasty Gold over allegations of using forced labor from China's Uyghur minority.

Nike Canada and Dynasty Gold, based in Vancouver, are both "alleged to have or have had supply chains or operations in the People's Republic of China identified as using or benefitting from the use of Uyghur forced labor," a statement from the Canadian Ombudsperson for Responsible Enterprise (CORE) said.

The probes were launched after a coalition of 28 civil society organizations lodged several complaints in June last year about the overseas business of 13 Canadian companies.

Since setting up its complaint mechanism in 2021, this is the first such case where the Canadian agency has initiated an investigation, and no other agencies in Canada have launched such investigations.

Meanwhile, CORE is investigating complaints against the other 11 companies and is expected to release their reports in the coming weeks.

"I have not pre-judged the outcome of the investigations," Ombudsperson Sheri Meyerhoffer said in a statement, adding that the watchdog is "very concerned" about how these companies have chosen to respond to these allegations. We will await the results and we will publish final reports with my recommendations."

CORE was established in 2017 to investigate human rights violations mainly by Canadian garment, mining and oil and gas companies operating abroad. It does not have legal powers to prosecute the companies if found guilty.

How have Nike and Dynasty Gold responded to the allegations

Nike Canada is suspected of having "supply relationships with Chinese companies identified as using or benefitting from the use of Uyghur forced labor," adding, "Nike maintains that they no longer have ties with these companies and provided information on their due diligence practices," the statement by the agency said.

Dynasty Gold is alleged to have "benefited from the use of 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 arose after it left the region," the statement continued.

In an email Dynasty Gold responded to Reuters news agency calling the "totally unfounded."

In recent years several US and Canadian companies have been accused of using forced labor from the Uyghur Muslims, an ethnic minority in China.

The UN High Commissioner for Human Rights has referred to the treatment of Uyghurs in China as crimes against humanity. 

Beijing denies the accusations, describing the facilities as vocational centers designed to curb extremism.