The Canadian Ombudsperson for Responsible Enterprise (CORE) has published a report on the proceedings between Zara Canada and 28 Canadian human rights organizations. The organizations had accused Zara Canada of having supplier relationships with three Chinese factories that use Uighur forced laborers. This allegation is based on findings by the Australian Strategic Policy Institute (ASPI) in March 2020 and the Helena Kennedy Center for International Justice (HKCIJ) in June 2022, which identified the Chinese companies in question as factories that use or profit from forced Uyghur labor. According to the allegations, Zara’s use of Uyghur forced labor at its suppliers began before May 1, 2019 and is ongoing. The complaint to CORE was filed in June 2022.
The process is not yet completed. Zara Canada argues that the complaint is frivolous or vexatious because it is factually unfounded and contains insufficient factual information. Zara Canada repeats previous arguments, particularly that it has no business relationship with any factory in Xinjiang and that the complaint does not contain any information linking Zara Canada to the factories in Xinjiang.
The proceedings therefore raise the fundamental question of whether a national subsidiary of a company headquartered in Spain – as is the case with Zara – can be held responsible for the parent company’s supply chain relationships.
Zara also refers to Inditex’s own supply chain traceability systems and Inditex’s use of due diligence procedures.
The Ombudsman Office was established by the Canadian government. It is intended to give people and organizations the opportunity to prosecute human rights violations by Canadian companies in the clothing, mining and oil and gas industries outside Canada.