World Stock Watch

UK Government Seeks Answers from Shein and Temu on Workers’ Rights

The UK’s Business and Trade Committee is taking a closer look at the employment practices of online retailers Shein and Temu, as part of its inquiry into the country’s employment laws. The committee has invited representatives from both companies to provide evidence and answer questions on January 7 at the House of Commons.

A Comprehensive Overhaul of Employment Law

The UK government is pushing for a major update to its employment laws, which it claims will be the most significant upgrade to workers’ rights in a generation. The proposed Make Work Pay: Employment Rights Bill aims to address several key issues, including:

• Banning exploitative zero-hours contracts
• Ending ‘fire and rehire’ and ‘fire and replace’ practices
• Making parental leave, sick pay, and protection from unfair dismissal a day one right
• Strengthening statutory sick pay and flexible working arrangements

A Call for Evidence

The committee has asked Shein and Temu to provide evidence to inform the later stages of the Bill’s passage through Parliament. This will help assess whether the proposed legislation will achieve its aims and identify any potential areas for improvement. The committee is also seeking input from other major employers, including McDonald’s, Tesco, and the British Retail Consortium.

Key Questions to Be Answered

Those providing evidence will be asked to consider several key questions, including:

• How the Bill will contribute to the government’s goal of achieving the fastest growth in the G7
• Whether the Employment Rights Bill will adequately protect workers and improve living standards across the country
• The impact of the Bill on businesses, including investment rates, start-up rates, and the supply of labor
• How to ensure adequate protection against exporting poor labor standards, including concerns over forced labor in international supply chains

Shein’s Planned London Flotation

This development comes as Shein is reportedly considering asking UK regulators to waive listing rules that would require it to sell at least 10% of its shares to the public in its planned London flotation. While Shein has refused to comment on the matter, analysts believe the scrutiny it is facing may be more related to China-West politics than its employment practices.

A Critical Moment for Workers’ Rights

As the UK government pushes for a major overhaul of its employment laws, the testimony of Shein and Temu will be closely watched. The outcome of this inquiry could have significant implications for workers’ rights in the UK and beyond.