Unseen Threads: Forced Labor Concerns Emerge in Taiwan's Textile Industry

Report Highlights Exploitation of Migrant Workers Supplying Major International Brands

Taipei, Taiwan – A recent investigation by the U.S.-based NGO Transparentem has brought to light concerning allegations of forced labor practices within Taiwan's textile industry, specifically targeting migrant workers. The report, released in February, sheds light on potential abuses within the supply chains of several well-known international fashion brands.

Transparentem's investigation, initiated in December 2021, involved interviews with 90 workers from Indonesia, the Philippines, Thailand, and Vietnam. These workers were employed at nine textile companies operating in Taiwan. The findings were presented in a report titled "Following the Thread: Labor Abuses in Taiwan's Textile Industry."

The report identified that the textile suppliers provide products for global fashion brands including Adidas, Puma, Nike, H&M, and Patagonia.

Debt, Threats and Wage Reductions

The investigation revealed that the most prevalent form of forced labor was the imposition of "recruitment fees," which are prohibited by the Taiwanese government. These fees, sometimes reaching NT$90,000 (US$2,716), were often coupled with monthly "service fees" of up to US$60. Recruitment fees, collected by agents in the workers' home countries, are often split with employment brokers in Taiwan, leading to debt bondage. Service fees are deducted from workers' monthly salaries by recruitment companies. The International Labor Organization (ILO) considers the practice of withholding wages an indicator of forced labor.

The ILO has classified both recruitment fees and service fees as indicators of forced labor.

Other concerning practices uncovered included instances where workers were pressured to continue employment against their will, faced intimidation and threats, were penalized for minor infractions, had their identity documents withheld, and experienced issues with wage discrepancies and deception.

Workers at four companies who sought to change employers were either prevented from doing so or warned of repatriation if they did not renew their contracts. At five other suppliers, workers were threatened with deportation, and deductions from their wages were used as punishment for minor offenses.

Path to Accountability

Transparentem reached out to 47 brands associated with the identified suppliers in February 2024, urging them to address the labor issues. Most of the brands have begun developing corrective action plans (CAPs) with their suppliers, including promises to reimburse migrant workers for recruitment and service fees.

However, as of the report's release in February, only two suppliers had initiated any fee refunds, with no comprehensive repayment plans in place.

Yuki Abe, Chief Counsel at YKK's Asia headquarters, stated that their audit of Lovetex, one of its suppliers, found "potential abusive practices" following the Transparentem report. YKK is currently working on a repayment plan for the migrant workers at Lovetex and ensuring that future recruits are not subjected to the same financial burdens.

A source from one of Patagonia's suppliers indicated that the company has been engaging in weekly online meetings with the American Apparel and Footwear Association (AAFA) and the Taiwanese Textile Federation to discuss the specifics of its CAP. Patagonia, in a written statement, confirmed that it has met with its suppliers and helped them to create improvement plans. One of the goals in the improvement plans is to "eliminate" recruitment fees.

The company also noted it has set high standards for working conditions for migrant workers at their supplier factories and will continue to demand these standards are met.

A Long-Term Solution?

Minister of Labor Hung Sun-han (洪申翰) has stated that the Labor Ministry will conduct a thorough investigation into the incidents highlighted by Transparentem and take action against any violations involving forced labor and human trafficking.

Hung pointed to the multilingual "Online Application and Inquiry Download System for Foreign Workers," a website where workers can download their employment and job transfer permits. Hung believes this will prevent identification documents from being withheld, and from workers from being charged fees when changing employers.

The government has also launched "migrant worker employment transfer service centers" in Taoyuan and Changhua County, offering counseling services in English, Bahasa Indonesia, Thai, and Vietnamese to eliminate the need for employment brokers. Hung advised migrant workers to utilize the 1955 hotline to report any instances of exploitation or abuse.

“International governments and brands have in recent years focused more on the issue of forced labor in supply chains. Therefore, the Ministry of Labor has introduced measures to tackle these issues and protect worker's rights," Hung said.

Lennon Wang (汪英達), director of migrant worker policies at the Serve the People Association (SPA), expressed "disappointment" at Hung's response.

"Migrant workers should not be asked to pay any fees, as employers have far greater bargaining power (with employment brokers)," Wang said.

“Furthermore, brands should contribute toward any applicable fees so suppliers do not have to shoulder the full cost. Only then, will it be truly fair," Wang concluded.