The Canadian Ombudsman for Responsible Enterprise (CORE), Sheri Meyerhoffer, announced on Tuesday the launch of two investigations into allegations of forced labor by Uyghurs. The two targeted companies, Nike Canada Corp. and Dynasty Gold Corp., allegedly used or profited from worker abuse in their own operations or through their supply chains.
In the case of Nike, the plaintiffs, based on a report by Australia’s Strategic Policy Institute, suspect the company has “supply chain relationships or links” with six companies they themselves linked to the forced labor of the Uyghurs, this minority persecuted by the Chinese government. This Australian report, published in March 2020, estimated that more than 80,000 Uyghurs worked in factories supplying well-known companies, including Nike, in conditions akin to forced labor.
Dynasty Gold, meanwhile, allegedly benefited from forced Uyghur labor at a mine in northwest Xinjiang located near “detention” or “re-education” centers, according to the complaint.
In April 2023, the company replied to OCRE that the allegations are not supported by any evidence, that it has no operational control over the mine and that it has ceased its mining exploration activities. in Xinjiang in 2008. An argument that does not convince the ombudsman’s office, which judges that the company’s response “raises questions of fact that justify an investigation”.
OCRE indicates that in the context of the two complaints, mediation is not possible at the moment, a situation that the ombudsman considers worrying. The latter also mentioned that the investigators could not go to the field. The investigation will therefore rely on experts who “understand the context of the region”.
Limited powers
The announcement follows the filing, in June 2022, of 13 complaints relating to the activities of Canadian companies abroad by a group of 28 organizations, including several human rights NGOs. This Tuesday, OCRE made public its “initial assessment reports” for 2 of these 13 complaints and decided to go ahead with investigations. The other 11 complaints are still under analysis.
CORE investigates complaints from individuals or organizations about alleged human rights abuses by Canadian companies in the apparel, mining, oil and gas sectors operating abroad. However, the federal agency does not have the power to compel companies to testify or provide information.
“The true power of OCHER,” explains Mr.me Meyerhoffer, is precisely to draw attention to situations involving human rights violations that would not normally come to the attention of the public or the Canadian government. »
She adds that she can investigate even without the participation of the companies. OCRE can also make recommendations, such as withdrawing government support from an offending company or encouraging it to pay compensation to the injured parties.
Enough bite?
A power that is largely insufficient, according to Emily Dwyer, director of policy at the Canadian Network on Corporate Accountability. “The government thinks that voluntary mechanisms, mediation mechanisms, are an answer to this problem even though the evidence is that we really need something more binding,” she says. However, it recognizes the complexity of putting in place laws governing business across borders.
Mme Dwyer also laments the slowness of the process. She doubts the survey will provide answers to questions raised in June 2022 until OCRE can force companies to cooperate. “What is the added value of this kind of exercise? she asks.
A criticism shared by Lori Waller, of the organization Above Ground, an NGO ensuring the respect of human rights by Canadian companies abroad. “It takes more than transparency, she says, it takes accountability. Regardless of the results of these investigations, the more than [l’ombudsman] can do is recommend that a company change its processes. »
She also doubts the possibility of obtaining information on what is happening in Xinjiang, especially if companies are not forced to open their books. “There have been discussions to give these powers [à l’ombudsman], she recalls. Now would be a good time to do so. »