Former Chinese Inmate Sues Milwaukee Tool for Forced Labor in Supply Chain
A former prisoner at the Hunan Chishan Prison in China sued Milwaukee Electric Tool Corp. and Techtronic Industries Co. in the Eastern District of Wisconsin for importing goods made with forced convict labor. The individual, using the pseudonym Xu Lun, alleged that the firms violated the Trafficking Victims Protection Act, which allows for civil suits against parties that knowingly benefit from taking part in a venture which the party "knew or should have known was engaged in forced labor" (Xu Lun v. Milwaukee Electric Tool Corp., E.D. Wis. # 24-803).
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The former detainee said that during his time in Chishan Prison, he was "forced to make work gloves bearing the distinct 'Milwaukee' logo." Xu's complaint said that all prisoners at Chishan Prison were forced to make various textiles, including the Milwaukee Tool gloves, for 11-13 hours a day with only one to three days off a month.
Xu claimed that Milwaukee Tool, which is a subsidiary of co-defendant Techtronic Industries, a Hong Kong-based firm, "had unique reason to know of and either knew of or recklessly disregarded the forced labor." Counsel for Xu sent the companies a letter on Jan. 31, 2023, alerting them to the presence of forced labor in their supply chain, to which the companies said they carried out an internal investigation and found no forced labor.
In July 2023, the Congressional-Executive Committee on China sent the firms a letter asking about their supply chain due diligence efforts. To this, the companies admitted that they weren't able to "adequately audit its suppliers" in China and were planning on moving its suppliers to Southeast Asia, the complaint said. If Milwaukee Tool and Techtronic Industries weren't aware of the use of forced labor prior to Jan. 31, 2023, "they were indeed reckless in failing to detect it given they had ample opportunity and the ability to do so," the brief said.
Xu alleged that the use of forced labor in China is "widely known" and that Techtronic Industries "has deep and unique knowledge of labor and manufacturing issues" in China. Despite this special knowledge, Milwaukee Tool and Techtronic Industries advertise themselves as "devoting more attention and care to the manufacturing process than their competitors" and "carefully audit suppliers for forced labor," the brief said.
Proper due diligence efforts could have detected the forced labor in Milwaukee Tool's supply chain, Xu alleged. Citing a response from Jill Tucker, a former Reebok executive with a history of auditing supply chains, Xu said "commercially reasonable" practices such as interviewing workers at foreign facilities, visiting the facilities and requiring suppliers to agree to unannounced audits of their facilities would have prevented the use of forced labor.
The complaint noted CBP's move in April 2024 to block the import of work gloves made by Milwaukee Tool's supplier, Shanghai Select Safety Products Co., and two of its Chinese subsidiaries. Xu alleged that the facts show that Milwaukee Tool and Techtronic Industries knew or should have known that forced labor was being used, entitling him to monetary, consequential and punitive damages for his "unpaid wages" and "mental anguish and pain and suffering."
A spokesperson for Milwaukee Tool said that, while it can't comment on active litigation, it hasn't found any evidence of forced labor in its supply chains "despite rigorous investigations" and has ended its relationship with the "accused supplier." The company "takes allegations regarding the use of forced labor by a supplier very seriously and does not endorse such practices. We empathize deeply with those affected by such practices and remain committed to ensuring ethical standards throughout our operations."