MP calls on fast-fashion chain to prove its ethical credentials

14th June 2019

Shadow Business Minister Bill Esterson MP has called on fashion retailer Boohoo to prove its ethical trading credentials by giving its workers “a voice” through trade union recognition.

The Union of Shop, Distributive and Allied Workers (Usdaw) maintains that the “fast fashion” firm had refused to meet the union to discuss official recognition, which would allow the union to negotiate pay, terms and conditions on behalf of workers.

The Sefton Central MP has questioned the firm’s response after bosses said their workers had “no interest” in union representation.

Mr Esterson said: “Boohoo have certainly been found wanting in respect of giving their workers the chance to speak with one voice.

“In 2018, the Environmental Audit Committee, chaired by my Labour colleague Mary Creagh MP, recommended that Boohoo engage with Usdaw on this. Yet we keep hearing that Boohoo has failed to do this.

“The company wants to be seen as an ethical trader, but this means treating workers in the UK fairly as well as ensuring overseas operations are up to scratch”.

Boohoo are reported to have actively discouraged their workers from joining a union.

Usdaw’s North West Divisional Officer Mike Aylward said: “This account of what Boohoo management are up to is shocking and a direct contradiction of the statements they have made in the media and to MPs. Boohoo want to convince everyone that they are an ethical trader, but they appear to be actively opposing their staff having a voice through an independent trade union.

“Ethical trading isn’t just about checking the terms and conditions of workers in the supply chain, as important as that is, it’s also about ensuring Boohoo’s directly employed staff are treated with dignity and respect.

“Boohoo staff clearly know that what managers are doing is wrong and they fear for their jobs if they speak out. This behaviour is a throwback to a Dickensian employer of 1819, rather than a modern ethical trader of 2019. We have received fantastic support from Boohoo employees asking us to keep up the campaign for recognition, which is simply at odds with what the company is saying.

“Usdaw’s campaign continues until Boohoo listens to reason, listens to our members and listens to the cross-party committee of MPs. Further to our campaigning activities of last week we have been inundated with support from the public signing our petitions asking for the business to meet with union representatives.

“I have written to Boohoo suggesting the company agree to meet with us in an attempt to understand each other’s opinion and to make this into a positive story of partnership and working together in that spirit.”

Boohoo’s head office is in Manchester and they have a warehouse in Burnley, where around 2,000 staff are employed.

Mary Creagh MP, in a letter to Boohoo joint chief executive Carol Kane, wrote: “I am writing to you following media reports that the Union of Shop, Distributive and Allied Workers (Usdaw) continue to experience difficulties in establishing trade union recognition discussions with Boohoo. This is contrary to the evidence you gave to my Committee last November where you committed to union recognition ‘if the workers would like it’.”

“As you will be aware, in our final report we recommended that Boohoo engage with Usdaw as a priority and recognise unions for your workers. I would therefore be grateful if you could tell me what steps you have taken to engage with Usdaw regarding formal trade union recognition at your Burnley warehouse site?

“When will formal recognition be forthcoming? What other progress have you made to recognise trade unions within your supply chain in the UK and overseas?” asked Creagh.

“Boohoo want to convince Parliament that they are an ethical trader, but when it comes to giving their staff a voice through an independent trade union they are found wanting,” said Usdaw divisional officer Mike Aylward.

“Ethical trading isn’t just about checking the terms and conditions of workers in the supply chain, as important as that is, it’s also about ensuring Boohoo’s directly employed staff are treated with dignity and respect,” he added.

Bill Easton

“MPs listened to Usdaw’s evidence that countered Boohoo’s assertion that there was no demand for union recognition and we welcomed the recommendation for the company to engage with us as a priority, but the company continues to decline to engage. Maybe Boohoo thought MPs would forget about their recommendations following the publication of their report, but that clearly is not the case,” said Aylward.

In April Boohoo revealed annual profits of £59.9 million.

Mr Esterson said: “Boohoo staff deserve to be properly represented in pay talks and other negotiations with their employer. They should be given the option to join the union and certainly should not be discouraged.”