Walmart and Centric Brands Investigating Labor Practices in Cambodian Supply Chain
Walmart and Centric Brands are investigating labor practices in their supply chains in Cambodia over allegations that inmates at the largest women's prison in Cambodia were illegally employed to make garments, Reuters reported Aug. 21.
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The reviews came in response to two letters that the American Apparel and Footwear Association wrote to the Cambodian authorities regarding the allegations. The first letter, written in November 2022, asked the Cambodian Ambassador to the U.S. Keo Chhea to investigate "credible reports" that inmates from Cambodia's main women's prison, Correctional Center Two, were being used to produce garments and other textile products.
The second letter, written in February, was to Cambodian Deputy Prime Minister & Minister of Economy and Finance Dr. Aun Pornmoniroth and Cambodian Minister of Commerce Pan Sorasak. That letter said that after the first letter, the AAFA and Keo had two follow-up meetings and an interagency investigation on the issue. The letter asked for a representative to be appointed as an "ongoing point of contact" for engagement on the issue and that Pornmoniroth, Sorasak or that representative join a "virtual and confidential conversation" with the AAFA to discuss the matter immediately.
Walmart told Reuters in June it finds the allegations "very concerning." Centric told Reuters in June that it had "placed on hold" imports from a factory in Cambodia and would stop using any supplier found to be using prison labor, according to the Reuters report.
Walmart declined further comment. Centric Brands did not respond to our request for comment.