Employee Relations

MPs call on Boohoo to link bonuses to workers’ rights

However, the EAC said it ‘welcomes a number of positive steps that the fashion group is taking’ such as signing up to three ‘leading sustainability initiatives’

Boohoo’s chairman, Mahmud Kamani has once again been called on by MPs to improve working conditions for its employees and operate in a more environmentally sustainable manner.

The Environmental Audit Committee (EAC) has written to Kamani urging for the head to link its bonus scheme for senior executives -which is worth up to £150m- to its previous pledges on “workers rights and environmental sustainability”.

Back in December, Kamani pledged to the EAC that he would “make Boohoo better” after the online retail tycoon was accused of paying staff at its Leicester factory less than half of minimum wage.

In addition, the group was also criticised for the environmental impact of its business model after the MPs launched a wider investigation into the effects of fast fashion.

In the letter, the EAC said it “welcomes a number of positive steps that the fashion group is taking” such as signing up to three “leading sustainability initiatives”.

However, the group said Boohoo’s rapid expansion after the acquisition of the remaining Arcadia brands and Debenhams makes it more crucial that it takes a “strong position against abuse in these areas”.

Philip Dunne MP, chairman, EAC said: “Boohoo’s rapid growth has taken the UK garment industry by storm. It has been linked to poor pay and conditions in UK garment factories. But to its credit, it has pledged to clean up its act.

“We have written to Mr Kamani to seek updates on a range of issues, including on supply chain transparency.”

He added: “We are asking Boohoo to put its money where its mouth is and link the multi-million pound bonuses it has lined up for its bosses to the achievement of its ethical and environmental pledges.”

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