British online fashion group Boohoo has opened an investigation into two factories in Faisalabad after The Guardian released a report that suppliers had paid their workers’ wages despite making a fair profit.
Earlier, British newspapers reported that workers at two factories in Faisalabad who made clothes for Boohoo earned PKR 10,000 or £ 47 (US $ 62) a month and the monthly minimum for such work was PKR 17,500.
The newspaper said it had “video and photo evidence of potential safety issues”.
Responding to the allegations, Boohoo said he had opened an investigation with the help of auditors and law enforcement experts at Bureau Veritas to see if the allegations were true or not.
The statement reads: “As we have stated, we will not tolerate harassment or bribery of garment workers.”
Boohoo has previously experienced a similar situation when it was hit by allegations that one of its UK suppliers was paying workers far less than the country’s minimum wage.
Boohoo said the company has suspended its supplier JD Fashion and AH Fashion factory from its chains while the investigation continues.
The statement stated, “Any supplier that does not treat its employees with the respect it deserves has no place in the Boohoo supply chain.”
Another factory, Madina Gloves, whose working conditions were criticized in the Guardian report, also denied the allegations, saying they were “baseless and contradictory”.
Glove owner Madina Mohamed Salim Shahzad told AFP: “The situation at the location is very different. The reporter never visited my factory and I asked him to give a single quote from the factory workers. I’m thinking about it, take him to court.”
Shahzad criticized the report, saying, “I would like to ask what service this report has done to my colleagues who are now going to lose their jobs.”
The report comes after Boohoo hired Brian Levson in November to ensure “lasting and meaningful change” in the group’s supply chain and business practices.