Boohoo: 18 factories fail to prove minimum wage pay, say auditors

Boohoo has been selling clothes made by at least 18 factories inLeicester that can’t prove they are paying workers minimum wage, accordingto third-party auditors.

An investigation by The Guardian found that over the past four yearsaudits have reported “critical issues” concerning record-keeping andworking hours at the time they were written, and suggest some workersacross the fast-fashion company’s supply chain may be paid as little as 3 -4 pounds per hour.

The report also claimed workers were not clocking in and out of shifts,that there were discrepancies in working-hours records, and that hours wererecorded using informal handwritten notes instead of digital timesheets.

There were also concerns about inadequate health and safety policies,fire safety issues, missing or expired ‘right to work’ documents,non-payment or furlough pay and no records of holiday pay.

'Critical issues' at Boohoo supplier factories

Responding to The Guardian’s investigation, Boohoo said the reportsappear to be “a selection of commentary from a limited number of thethird-party audits that have been completed”. However, it added that itsown investigations “have highlighted similar issues” with some of the samesuppliers with which it has suspended trading until the concerns areresolved.

In July, an undercover investigation by The Sunday Times alleged thatsome of Boohoo’s supplier factories in Leicester were paying just 3.50pounds per hour - the minimum wage is 8.72 pounds for those aged 25 - andforcing some to work while sick.

Boohoo, whose portfolio includes brands Pretty Little Thing and NastyGal, has since launched an independent review of its UK supply chain, theresults of which will be shared alongside its half-year results inSeptember.

Last week, the Ethical Trading Initiative (ETI) declined to completea questionnaire as part of the public call for evidence relating tothe review because it said the review - which is being commissioned andpaid for by Boohoo - “can't be fully independent”.

Photo credit: Boohoo