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Watchdog probing claims that Nike Canada, gold company benefiting from forced Uyghur labour

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Canada’s watchdog for corporate wrongdoing says she has enough to launch an investigation of allegations that Nike Canada and a gold mining company are benefiting from the forced labour of Uyghurs in China.

It’s the first time the office of the Canadian Ombudsperson for Responsible Enterprise (CORE) has launched an investigation since the federal government appointed Sheri Meyerhoffer to the role in April 2019.

“These are very serious issues that have been brought to our attention,” Meyerhoffer said Tuesday.

“Canadian companies are expected to respect Canadian standards for human rights and environmental protection when they work outside of Canada.”

A coalition of 28 civil society organizations, including the Uyghur Rights Advocacy Project, launched more than two dozen complaints with her office regarding forced labour practices.

In the first complaint, they alleged that Nike Canada Corp. has supply relationships with six Chinese companies that the Australian Strategic Policy Institute (ASPI) identified as using or benefiting from Uyghur forced labour.

The think tank released a report in 2020 estimating that more than 80,000 Uyghurs had been transferred to work in factories across China. It said some were sent directly from detention camps.

Last year, the United Nations concluded China had committed “serious human rights violations” against Uyghurs and other Muslim communities, particularly arbitrary detentions that may constitute crimes against humanity.

The coalition argued there is no indication that the popular clothing company has taken any concrete steps to ensure “beyond a reasonable doubt” that forced labour is not involved in its supply chain.

In a separate complaint, the group alleges that Dynasty Gold Corp. allows for forced labour at its gold mine in the Hatu district, close to what China has called “detention” centres or “re-education” camps.

The complainants point to a statement from the mine’s CEO in January 2021 that “many ethnicities, including Uyghur, were represented in all ranks of the work force.”

Meyerhoffer said she assessed the two complaints and decided there was enough to dig deeper.

“On their face, the allegations made by the complainants raise serious issues regarding the possible abuse of the internationally recognized right to be free from forced labour,” Meyerhoffer said in a copy of her initial assessment, made public Tuesday.

“I have decided to launch investigations into these complaints in order to get the facts and recommend the appropriate actions. I have not pre-judged the outcome of the investigations. We will await the results and we will publish final reports with my recommendations.”

Nike Canada denies the allegations

The complainants’ allege that Nike Canada is the primary customer of Qingdao Taekwang Shoes Co. Ltd., a factory that reportedly employs Uyghur workers who attend classes in the evening for “vocational training” and “patriotic education.”

It also said the clothing company has relationships with five other companies accused of using Uyghur forced labour:

  • Haoyuanpeng Clothing Manufacturing Co. Ltd.,
  • Esquel Textile Co. Ltd.,
  • Qingdao Jifa Group,
  • Huafu Fashion Co. Ltd.,
  • Texhong Textile Group.

Meyerhoffer’s office said it made several unsuccessful attempts to make contact with Nike Canada Corp beginning in the summer of 2022.

Earlier this year, Nike Inc., the parent company, turned down the ombudsman’s request for a meeting but sent a statement saying it is “committed to ethical and responsible manufacturing and we uphold international labour standards,” said the ombudsman report.

“We are concerned about reports of forced labour in, and connected to, the Xinjiang Uyghur Autonomous Region (XUAR). Nike does not source products from the XUAR and we have confirmed with our contract suppliers that they are not using textiles or spun yarn from the region,” said a copy of Nike’s statement.

The Nike logo is displayed at a Nike store in South Miami on Sept. 20, 2011. (The Associated Press)

Meyerhoffer said there is a conflict between what Nike says and what an Australian Strategic Policy Institute report said about the factories in the region.

For example, she said there is a contradiction with regard to Nike’s claim that Qingdao Taekwang Shoes Co. Ltd. stopped hiring new employees from Xinjiang after human rights abuses were reported in 2019 by the ASPI.

CORE said it will proceed with an investigation through independent fact-finding on the Nike assertions, but added that mediation is available at any stage of the complaint process.

“Given the high-risk context, there is a need for enhanced human rights due diligence to identify, prevent and mitigate the human rights-related risks of Nike’s operations,” said the initial assessment report.

“In this regard, Nike Canada Corp. has not provided a satisfactory response or remedy to the allegations in the complaint, nor satisfactorily demonstrated that it conducts human rights due diligence.”

Mining company ‘deliberately avoided’ participating: ombudsman

Meyerhoffer fared worse when trying to get Dynasty to respond despite multiple attempts

“DYG [Dynasty Gold Corp.] only provided its comments to the draft initial assessment report. Prior to that, DYG appears to have deliberately avoided participating in and cooperating with the CORE’s dispute resolution process without providing any explanation,” said the report.

The mining company eventually did send a comment denying it has operational control over the Hatu mine. Meyerhoffer said that might not be true given statements it has made in corporate documents and press releases.

“DYG’s assertion that it terminated its mineral exploration activities in Xinjiang in 2008 does not seem to be supported by its press releases dated January 25, 2021 and April 13, 2022,” says the report.

“Even if DYG does not have operational control, DYG is still responsible for ensuring that forced labour is not present in the Hatu mine over which it asserts 70 per cent ownership.”

Canadian Ombudsperson for Responsible Enterprise (CORE), Sheri Meyerhoffer, holds a news conference in Ottawa on Tuesday, July 11, 2023. Ottawa’s corporate-ethics watchdog has announced investigations into a mining corporation and the Canadian branch of Nike for possible forced labour in supply chains. (Sean Kilpatrick/The Canadian Press)

In a statement issued to CBC News, Dynasty’s CEO Ivy Chong called the initial assessment “totally unfounded.”

“Like many western companies, the wages that we paid to local workers were almost double the local wages. We gave them on-the-job training, such as how to use mining software etc. Everyone was happy working for us,” said Chong.

“We don’t understand on what evidence and basis that CORE conducts its investigation on Dynasty Gold Corp.”

Meyerhoffer said her team won’t be able to travel to the Xinjiang region to conduct their investigations.

China insists it’s not committing genocide

The coalition filed 13 admissible complaints with the CORE office, Meyerhoffer said Tuesday. Her assessments on the remaining 11 will be made public in the coming weeks.

“It is our mission to resolve human rights complaints in a fair and unbiased manner in order to help those impacted and to strengthen the responsible business practices of the companies involved,” she said.

In January 2021, the federal government announced a suite of new regulations to ensure that Canadian companies are not complicit in human rights abuses or the use of forced labour in China’s Xinjiang province.

Later that year, Canadian MPs passed a motion saying that China’s persecution of Uyghurs and other Turkic Muslim groups amounts to genocide, according to the definition set out in the 1948 UN Genocide Convention. Prime Minister Justin Trudeau and most of his cabinet were absent for the vote.

China has called the genocide allegations “the lie of the century.”

Conservative MP Garnett Genuis said it’s “shameful” that the federal government hasn’t recognized the Uyghur genocide.

“Over 600 shipments of goods have been denied entry to the United States over concerns about products tainted by Uyghur slave labour. Under Justin Trudeau, not a single shipment has been denied into Canada. Zero,” wrote the international development critic in a media statement.

“CORE has an important role to play, but more direct leadership from the government is also required.”

NDP MP Heather McPherson said Tuesday’s report shows that CORE lacks teeth.

“Clearly these companies don’t care. They don’t feel it will hurt their bottom line,” she said.

“This ombudsperson needs the power to compel testimony and witness and documentation and does not have that.”

 

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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The #1 Skill I Look For When Hiring

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File this column under “for what it’s worth.”

“Communication is one of the most important skills you require for a successful life.” — Catherine Pulsifer, author.

I’m one hundred percent in agreement with Pulsifer, which is why my evaluation of candidates begins with their writing skills. If a candidate’s writing skills and verbal communication skills, which I’ll assess when interviewing, aren’t well above average, I’ll pass on them regardless of their skills and experience.

 

Why?

 

Because business is fundamentally about getting other people to do things—getting employees to be productive, getting customers to buy your products or services, and getting vendors to agree to a counteroffer price. In business, as in life in general, you can’t make anything happen without effective communication; this is especially true when job searching when your writing is often an employer’s first impression of you.

 

Think of all the writing you engage in during a job search (resumes, cover letters, emails, texts) and all your other writing (LinkedIn profile, as well as posts and comments, blogs, articles, tweets, etc.) employers will read when they Google you to determine if you’re interview-worthy.

 

With so much of our communication today taking place via writing (email, text, collaboration platforms such as Microsoft Teams, Slack, ClickUp, WhatsApp and Rocket.Chat), the importance of proficient writing skills can’t be overstated.

 

When assessing a candidate’s writing skills, you probably think I’m looking for grammar and spelling errors. Although error-free writing is important—it shows professionalism and attention to detail—it’s not the primary reason I look at a candidate’s writing skills.

 

The way someone writes reveals how they think.

 

  • Clear writing = Clear thinking
  • Structured paragraphs = Structured mind
  • Impactful sentences = Impactful ideas

 

Effective writing isn’t about using sophisticated vocabulary. Hemingway demonstrated that deceptively simple, stripped-down prose can captivate readers. Effective writing takes intricate thoughts and presents them in a way that makes the reader think, “Damn! Why didn’t I see it that way?” A good writer is a dead giveaway for a good thinker. More than ever, the business world needs “good thinkers.”

 

Therefore, when I come across a candidate who’s a good writer, hence a good thinker, I know they’re likely to be able to write:

 

  • Emails that don’t get deleted immediately and are responded to
  • Simple, concise, and unambiguous instructions
  • Pitches that are likely to get read
  • Social media content that stops thumbs
  • Human-sounding website copy
  • Persuasively, while attuned to the reader’s possible sensitivities

 

Now, let’s talk about the elephant in the room: AI, which job seekers are using en masse. Earlier this year, I wrote that AI’s ability to hyper-increase an employee’s productivity—AI is still in its infancy; we’ve seen nothing yet—in certain professions, such as writing, sales and marketing, computer programming, office and admin, and customer service, makes it a “fewer employees needed” tool, which understandably greatly appeals to employers. In my opinion, the recent layoffs aren’t related to the economy; they’re due to employers adopting AI. Additionally, companies are trying to balance investing in AI with cost-cutting measures. CEOs who’ve previously said, “Our people are everything,” have arguably created today’s job market by obsessively focusing on AI to gain competitive advantages and reduce their largest expense, their payroll.

 

It wouldn’t be a stretch to assume that most AI usage involves generating written content, content that’s obvious to me, and likely to you as well, to have been written by AI. However, here’s the twist: I don’t particularly care.

 

Why?

 

Because the fundamental skill I’m looking for is the ability to organize thoughts and communicate effectively. What I care about is whether the candidate can take AI-generated content and transform it into something uniquely valuable. If they can, they’re demonstrating the skills of being a good thinker and communicator. It’s like being a great DJ; anyone can push play, but it takes skill to read a room and mix music that gets people pumped.

 

Using AI requires prompting effectively, which requires good writing skills to write clear and precise instructions that guide the AI to produce desired outcomes. Prompting AI effectively requires understanding structure, flow and impact. You need to know how to shape raw information, such as milestones throughout your career when you achieved quantitative results, into a compelling narrative.

So, what’s the best way to gain and enhance your writing skills? As with any skill, you’ve got to work at it.

Two rules guide my writing:

 

  • Use strong verbs and nouns instead of relying on adverbs, such as “She dashed to the store.” instead of “She ran quickly to the store.” or “He whispered to the child.” instead of “He spoke softly to the child.”
  • Avoid using long words when a shorter one will do, such as “use” instead of “utilize” or “ask” instead of “inquire.” As attention spans get shorter, I aim for clarity, simplicity and, most importantly, brevity in my writing.

 

Don’t just string words together; learn to organize your thoughts, think critically, and communicate clearly. Solid writing skills will significantly set you apart from your competition, giving you an advantage in your job search and career.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Politics likely pushed Air Canada toward deal with ‘unheard of’ gains for pilots

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MONTREAL – Politics, public opinion and salary hikes south of the border helped push Air Canada toward a deal that secures major pay gains for pilots, experts say.

Hammered out over the weekend, the would-be agreement includes a cumulative wage hike of nearly 42 per cent over four years — an enormous bump by historical standards — according to one source who was not authorized to speak publicly on the matter. The previous 10-year contract granted increases of just two per cent annually.

The federal government’s stated unwillingness to step in paved the way for a deal, noted John Gradek, after Prime Minister Justin Trudeau made it plain the two sides should hash one out themselves.

“Public opinion basically pressed the federal cabinet, including the prime minister, to keep their hands clear of negotiations and looking at imposing a settlement,” said Gradek, who teaches aviation management at McGill University.

After late-night talks at a hotel near Toronto’s Pearson airport, the country’s biggest airline and the union representing 5,200-plus aviators announced early Sunday morning they had reached a tentative agreement, averting a strike that would have grounded flights and affected some 110,000 passengers daily.

The relative precariousness of the Liberal minority government as well as a push to appear more pro-labour underlay the prime minister’s hands-off approach to the negotiations.

Trudeau said Friday the government would not step in to fix the impasse — unlike during a massive railway work stoppage last month and a strike by WestJet mechanics over the Canada Day long weekend that workers claimed road roughshod over their constitutional right to collective bargaining. Trudeau said the government respects the right to strike and would only intervene if it became apparent no negotiated deal was possible.

“They felt that they really didn’t want to try for a third attempt at intervention and basically said, ‘Let’s let the airline decide how they want to deal with this one,'” said Gradek.

“Air Canada ran out of support as the week wore on, and by the time they got to Friday night, Saturday morning, there was nothing left for them to do but to basically try to get a deal set up and accepted by ALPA (Air Line Pilots Association).”

Trudeau’s government was also unlikely to consider back-to-work legislation after the NDP tore up its agreement to support the Liberal minority in Parliament, Gradek said. Conservative Leader Pierre Poilievre, whose party has traditionally toed a more pro-business line, also said last week that Tories “stand with the pilots” and swore off “pre-empting” the negotiations.

Air Canada CEO Michael Rousseau had asked Ottawa on Thursday to impose binding arbitration pre-emptively — “before any travel disruption starts” — if talks failed. Backed by business leaders, he’d hoped for an effective repeat of the Conservatives’ move to head off a strike in 2012 by legislating Air Canada pilots and ground crew to stick to their posts before any work stoppage could start.

The request may have fallen flat, however. Gradek said he believes there was less anxiety over the fallout from an airline strike than from the countrywide railway shutdown.

He also speculated that public frustration over thousands of cancelled flights would have flowed toward Air Canada rather than Ottawa, prompting the carrier to concede to a deal yielding “unheard of” gains for employees.

“It really was a total collapse of the Air Canada bargaining position,” he said.

Pilots are slated to vote in the coming weeks on the four-year contract.

Last year, pilots at Delta Air Lines, United Airlines and American Airlines secured agreements that included four-year pay boosts ranging from 34 per cent to 40 per cent, ramping up pressure on other carriers to raise wages.

After more than a year of bargaining, Air Canada put forward an offer in August centred around a 30 per cent wage hike over four years.

But the final deal, should union members approve it, grants a 26 per cent increase in the first year alone, retroactive to September 2023, according to the source. Three wage bumps of four per cent would follow in 2024 through 2026.

Passengers may wind up shouldering some of that financial load, one expert noted.

“At the end of the day, it’s all us consumers who are paying,” said Barry Prentice, who heads the University of Manitoba’s transport institute.

Higher fares may be mitigated by the persistence of budget carrier Flair Airlines and the rapid expansion of Porter Airlines — a growing Air Canada rival — as well as waning demand for leisure trips. Corporate travel also remains below pre-COVID-19 levels.

Air Canada said Sunday the tentative contract “recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline.”

The union issued a statement saying that, if ratified, the agreement will generate about $1.9 billion of additional value for Air Canada pilots over the course of the deal.

Meanwhile, labour tension with cabin crew looms on the horizon. Air Canada is poised to kick off negotiations with the union representing more than 10,000 flight attendants this year before the contract expires on March 31.

This report by The Canadian Press was first published Sept. 16, 2024.

Companies in this story: (TSX:AC)

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