Toiling away for Shein

Willie Gomez is thrilled! The Caribbean pop singer loves “… that Shein is putting together a show like this. Really supporting all ethnicities, all shapes and sizes – you know – it’s so inclusive.”  Cut! We’re now backstage. “I’m ready” says Willie from behind his face-mask. “Let’s do this.”

Another cut! Willie gets out of a Cadillac and prepares to start performing a lively Latino tear-jerker. He is accompanied by a swiftly alternating troupe of extravagantly dressed dancers, carefully selected on the basis of diversity – tall or short, chubby or thin, with a range of origins and skin colours.

After Willie Gomez, it’s Blu DeTiger’s turn. The singer and bass guitarist from New York declares: “there’s no one else that I know of that sings and plays bass” (she’s obviously too young to know about Sting!) and considers that Shein is “really revolutionizing what a fashion show could be”. The dance-floor is marked out by colourful neon lights. Apart from this, everything is black except the huge white Shein logo on the floor. There is no audience. This place could be anywhere – or just as easily, nowhere.

In late 2020, Public Eye set itself the task of answering that very question. We contacted an organization that defends workers’ rights in South China (its name cannot be disclosed for security reasons). In April, two researchers started to seek out Shein’s suppliers in Guangzhou – a metropolis in the Pearl River Delta, located some 100 km north of Hong Kong.

In the subsequent weeks, they managed to locate a total of 17 companies that supply Shein. Seven of them are located in Nancun, a neighbourhood in the district of Panyu. In July, a researcher was able to interview three female and seven male workers in the area. They earn a living in six different companies – operating sewing and quilting machines, working in the quality control and packaging departments, or ironing or cutting fabric. They all originally come from the provinces and have years or decades of experience in the industry. Most have been working for their current employers for less than a year.

We obtained the findings of the research and statements of interviewees in writing, in the form of detailed reports illustrated with mobile-phone pictures. They depict factory corridors covered in bags, workers at standing tables, stacks of T-shirts packed in plastic “Shein” bags, and workstations lit by neon lights.

What we can say about her is that she has now been active as a researcher, activist and trainer for industry employees for approximately 20 years. She has in-depth knowledge of the textile sector in the region, though she had never heard of a brand called Shein until we asked about it.

Safety deficiencies in “Shein Village”

We follow her to Nancun Village; the place where the original village of Nancun was built. Several dozen workshops are located within just a few streets, most of them set up in former residential buildings. The researcher was told by a factory owner that the village produces clothing almost “exclusively” for Shein. She says that this surprised her, because such small, informal production sites would usually supply local brands. International companies generally prefer larger, better regulated companies.

It’s just as narrow in the production sites as it is in the small winding streets of this sprawling neighbourhood. Bags of clothes and rolls of fabric block corridors and stairways. This is not only the case in the numerous small workshops, but also in some of the several larger companies located in “Shein Village”; for example, in the company that according to employees owns seven workshops in which over 200 people work. On a poster pinned to the wall, it indicates that the company is a “main supplier to Zoetop”, Shein’s parent company, and produces 1.2 million articles of clothing a day.

In the discussion, the researcher reports that she didn’t see a single emergency exit, and that the entrances and stairs don’t allow workers to leave the premises quickly. Moreover, the windows in the upper floor are barred. “I don’t want to think about what would happen if a fire broke out there”, she concludes.

In September, Shein published a Supplier Code of Conduct on its website for the first time. It specifies, among other things, that “supplier partners shall provide a safe, hygienic and healthy workplace environment”. Clearly there is still much work to do in this regard.

Two full-time jobs in one

In one of the seven companies, the researcher was able to hold a long interview with one female and two male workers. The first point that stands out when you read the interview protocols is how many hours the three employees work. They all give similar working times: from 8 a.m. to 12 p.m. in the morning; then from 1.30 p.m. to 5.45 p.m.; and then in the evening from 7 p.m. to 10 or 10.30 p.m. They work after dinner every day of the week except one, with one day off per month.

This not only contravenes the requirement in Shein’s Supplier Code of Conduct for suppliers to “arrange working hours reasonably” – it’s also illegal on numerous counts. According to Chinese labour law, a working week can comprise a maximum of 40 hours, overtime cannot exceed 36 hours per month, and workers must have at least one day off per week.

The researcher tells us that such working hours are not unusual in the textile industry, and that many workers want to work these hours. For they are all “migrant workers”, i.e. women and men from the provinces, where wages are significantly lower. Many are only in the city for a limited time, without their families and with no responsibilities other than to earn as much money as possible. “You might find a local in the office of a company” notes the researcher, “but in the production departments there are only migrant workers”.

If they are prepared to effectively work two jobs in one, they can earn relatively good money. All three interviewees state on the record that they are paid per item of clothing – the more complicated the item, the higher the amount. One of the interviewees states that, in general, the wage per item of clothing is considerably lower here than in other places where he had worked. However, the quality expectations are not particularly high either.

Another point that stands out is that all three employees reported that they had not signed an employment contract. “Factories like these do not have to issue contracts”, or so the workers believe.

The researcher stated that it’s not surprising that in small, informal workshops there are no contracts. However, she was astonished that companies with over 100 employees did not issue contracts either. Chinese labour law requires them to do so and to provide employees with a copy. The researcher stated that companies of this size generally do not run the risk of being obliged to pay significant compensation payments if they are sued for failing to issue contracts.

Highly automated and hyper-flexible

There are numerous posts from Shein on the Chinese platform WeChat, where the company publishes production requirements that manufacturers can tender for. The manufacturing companies then purchase the fabric for the desired design themselves, once again from suppliers that Shein refers them to. This enables the company to control the entire supply chain without having to accept responsibility for the working conditions.

We don’t know whether Shein performs any kind of inspections in these companies. In a statement on its U.S. website, the company claims to invest “substantial efforts and resources” in its audit system. Shein states that in the past it conducted audits, with notice, and that it will be conducting additional internal audits, with and without notice, of manufacturing partners and finished product vendors. However, none of the ten employees who our researcher spoke to was aware of any audits having taken place.

In the larger factories there are posters on the walls that remind employees to clock in and out of work. We learn that the factory management shares the data with Shein, and that the company then issues contracts according to the factories workforce. This computer-supported, highly flexible supplier system appears to enable the hundreds of small production companies to be organized efficiently.

If a product sells well, Shein orders additional batches, usually from the supplier that manufactured the initial order.

This pleases the employees, who can produce an item of clothing that they are already familiar with, and can therefore complete the task more quickly, meaning that they ultimately earn more money. One of the most tiring things about working for Shein is that employees have to constantly get used to new cutting patterns, complicating the work of a cutter interviewed at one of the factories.

High expectations

The small quantities and the need for items to be produced very quickly make division of labour difficult. Seamstresses in factories have to be able to complete many different tasks on constantly changing patterns. This also explains why, in these factories, you mostly meet women and men who have years or decades of experience in the industry. Inexperienced workers simply wouldn’t be up to the task.

On the other hand, experts on the ground say that workers who are able to make relatively easy items of clothing quickly are unlikely to find many other jobs in the precarious Chinese textile industry, where they could earn more. The researcher reports that most of the workers she had spoken to were more or less satisfied with their job, “but I don’t believe they think about it all that much”.

According to Chinese media reports, in the municipality of Panyu, Shein relies not only on a network of 300-400 “main suppliers” but also on approximately 1,000 sub-contractors to whom orders are passed on. The carts used to transport textiles that are parked outside some factories are a clear sign of the lively subcontracting business. Many of the small companies here in Nancun Village only undertake the final touches – cutting the last threads, ironing, packaging and loading. However, there are no calls for tender for final assembly on the WeChat platform. So it’s fairly clear that these companies work as sub-contractors for Shein suppliers – and that in the event of an accident or outstanding wage payments, Shein would certainly not feel responsible.

No contract, no insurance

The Hongui Properties Building, a building full of textile workshops, is located half an hour’s walk west of Shein Village. Everything here is slightly more regulated – the corridors are wider, and the emergency exits are signposted. The factories here have up to 200 employees. The researcher is able to interview one female and one male employee from two different companies, and their reports are similar to the ones from Nancun Village.

They don’t have employment contracts. Although contributions from both employers and employees are a legal requirement, none of the latter are entitled to social security benefits.

The employees interviewed are far more concerned about the recent and ongoing reductions to the piece rates and about the fact that, at the same time, increasingly only complicated pieces are being produced at the location. Simple jobs were increasingly being outsourced to other provinces, they say – to Jiangxi, Guangxi or Hunan, where wages are lower. In fact, a minivan stands next to the building with the names of various municipalities in the province of Jiangxi written on its side. It‘s a kind of “taxi” for pre-cut pieces of fabric that are due to be produced in the interior of the country – we don’t know under what conditions or at what wage-rates.

We follow our researcher once again, a few kilometres to the West where numerous additional textile factories are located. These factories are generally slightly larger and have up to 300 employees. They usually have reasonably well-functioning ventilation systems and slightly larger workspaces, and there are employee canteens and accommodation in the vicinity. The five employees of larger companies with whom the researcher speaks describe similar working conditions to those already noted: 11 hours a day, no employment contract, and no social security contributions.

In one of the companies, we encounter something that we have not seen elsewhere – a guaranteed minimum income. A recruitment poster at the factory entrance states the minimum incomes for specific tasks: cutting threads: 4,000 yuan; packaging: 5,000 yuan; ironing: 7,000 yuan. The pay difference for ironing is explained by the fact that the workers iron the clothes in constant heat, due to the steam, and can seldom sit down.

In the factory hall, the researcher is able to view a snapshot of a girl’s dress. It’s a simple item – blue flowers printed on white polyester. The research estimates that, for a dress like this, the seamstress will probably be paid a maximum of 3 yuan (47 US cents) – per item. You can find it on Shein’s website. It costs CHF 11 and has already received over 200 ratings. That’s not surprising, because anyone who comments on clothing bought from Shein using the app receives points that can be used to make further purchases. Nearly all comments are written in Arabic, with a few in English: “I lovvveeeeee itttt”; “My baby like it so much”.

I order the dress on 7th September. Thanks to the “CH Special” promo code – there’s always some or other code available – the purchase price is reduced by CHF 1.10 to CHF 9.90. The postage cost is CHF 6.41! – the system is clearly not set up for individual purchases. The very next day I find out that the dress I ordered has been packed in an “international warehouse” and that the package has been disinfected, sterilized and despatched. There is no indication of the location of the international warehouse in my order summary or on Shein’s website.

Long hours in the warehouse

Researchers at the organization with whom we’re in contact also look into this question. They find out that Shein’s huge warehouse is called Ambo, belongs to the American logistics company Prologis, and is located in Foshan, approximately one hour’s drive from the factories in Guangzhou. It employs around 10,000 workers and operates 24 hours a day, 365 days a year.

The 12 interviews that the researchers conduct with employees of the logistics company paint the following picture. The working hours are extremely long here too – around 12 hours a day in normal times, and up to 14 in the high season. Employees work at least 22 days per month; most work 24 to 28 days a month. This is primarily because the unit price that they receive doubles from the 23rd day onwards. Thus, the following also applies to the warehouse:  anyone prepared to work two jobs in one can earn an attractive income: 7,000 yuan (approximately CHF 1,000) in normal times and up to 50 percent more in peak times. Yet these working hours contravene Chinese labour law.

A Prologis spokesperson responded to our request for comment by stating the following: “Our customers are responsible for the operations of their business within their leased premises on our property. With respect to the concern you raised, we have no knowledge of non-compliance.”

For the final leg of our journey, we return eastward – around 9,000 kilometres– from the small town of Thun to the mega-city of Guangzhou, and try to draw some conclusions. Anyone who had expected ultra-low wages in the light of the prices of Shein clothing would at first glance be astounded: you can earn quite good money producing clothes for Shein. Incomes are significantly above the monthly living wage of 5,410 yuan, as calculated by the Asia Floor Wage Alliance, a group of unions and civil society organizations from the Global South.

However, the comparison is fundamentally flawed, because all ten workers who we spoke to effectively work two jobs in one.

Shein systematically takes advantage of the fact that these employees are prepared to forgo even a minimum degree of safety, free time and quality of life, because they feel that they don’t really have an alternative.

None of those interviewed could show an employment contract. According to our information, no social security contributions are being paid for any of them, and many companies fail to comply with even the most basic safety standards.

In its Supplier Code of Conduct, Shein requires its subcontractors to “operate in full compliance with local laws, rules, governmental orders and regulatory requirements”.

As we confront Shein with our findings, we immediately receive an automatic confirmation: “The Shein Sustainability Team has received your suggestions and feedback, and we will follow up on related matters as soon as possible. Thank you.” In response to a reminder sent a few days later, we receive the same computer-generated message once again. We don’t know whether our mail was ever read by a person.

After editors of major media outlets confronted Shein with the results of our research, someone contacted us the day before publication: the Vice President for U.S. Public Affairs at “Shein Technology”. We forwarded our questions to him and received a short message a few hours later: “SHEIN has no comment at this time as we await a copy of the report and an opportunity to review. We take all supply chain matters seriously and look forward to hearing back.”

What does it say on a hoodie that’s for sale in six different colours for CHF 9 on Shein’s website? “Fun fact: I don’t care.”