Canadian Tire Corp. failed to pay living wages for garment workers at its South Asian suppliers factories, claim labour organizations in a lawsuit filed before a federal corporate watchdog.
Canadian Labour Congress (United Steelworkers Union) filed Tuesday’s complaint to the Canadian Ombudsperson for Responsible Enterprise. The office was asked to investigate claims of human rights violations in the retail retailer’s supply chains.
It is alleged that Bangladeshi workers who supply Canadian Tire subsidiary Mark’s clothing under brands like Wind River and Dakota Hayes are given “poverty level wages”.
“Mark’s’ failure to ensure a living wage is paid to workers in its supply chain is a human rights abuse,” the complaint addressed to Ombudsperson Sheri Meyerhoffer said.
Canadian Tire stated that it is committed to ensuring its suppliers adhere to all laws in their respective jurisdictions, and even compensate them for any violations.
In an emailed statement, the company explained that Canadian Tire regularly records wage rates and partners with trusted third parties to audit factories which produce our brand-name products.
Kalpona Akter from the Bangladesh Center for Workers Solidarity, stated that while the suppliers might pay slightly higher than Bangladesh’s minimum wage, average wages for garment workers are less than $1 per hour.
According to her, workers are forced into overcrowded homes and cannot afford food while working up to six days per week.
Akter spoke at a news conference, “Many are in constant struggle to feed themselves or their families. They live just one step away form abject poverty.”
The average garment worker earns about $173 a month — an amount that would have to increase four or five times to pay workers a living wage, she said.
Marty Warren (Canadian national director for the United Steelworkers Union) stated that Canadian Tire’s suppliers violate international human rights standards.
He said that Bangladeshi garment factories, like the ones used by Marks’s and Canadian Tire, are a source of poverty for both women and men.
Warren stated that Canadian Tire had the resources and influence to make sure rights were respected. It is up to them to take on their responsibility.”
It is requested that the federal corporate watchdog investigate the “ample of human rights violations” in Bangladesh by the ready-made garment company and “failure of workers to receive living wages in the supply chain.”
Labour groups have asked the watchdog for recommendations to ensure that Canadian Tire commits publicly to paying living wages to workers across its entire global supply chain.
Bangladesh is one of the world’s largest garment exporters.
Lululemon Athletica Inc., Loblaw Companies and many other Canadian apparel stores are available. Ltd’s Joe Fresh apparel brand has sourced clothing from South Asia.
Lululemon opened an investigation into allegations of worker abuse in Bangladesh’s factory, which supplied the retailer.
Joe Fresh was founded in 2013 after a Bangladeshi factory collapsed, killing over 200 workers.
Loblaw claimed at the time that its vendor standards ensured products were manufactured in a “socially responsible” manner.
The Canadian Press published this report Nov. 22, 2022.
The following companies are featured in the story (TSX.CTC.A and TSX.CTC).
Brett Bundale, The Canadian Press