Li & Fung named in human rights report

Hong Kong - Hong Kong sourcing specialists Li & Fung have been rated poorly on efforts to eradicate sweatshops.

Human rights charity Oxfam released a report researching 26 major Hong Kong-based clothing companies and rated them on how seriously they are tackling the issue of sweatshops.

The report gives low ratings to Li & Fung, saying that while the sourcing company has a code of conduct covering labour rights, the company refuses to disclose how the code is monitored, neither the names and addresses of its supplier factories. This makes it impossible for other organisations to verify workers' conditions.

Li & Fung recently signed a contract with Liz Claiborne, under which the Hong Kong company will handle Liz Claiborne's entire sourcing operations.

Industry players are also keeping watch to see if Australia's Pacific Brands, maker of brands like Bonds and Berlei, will engage Li & Fung when it moves its operations to China.

The Oxfam report also gave low ratings to Giordano, Esprit, Bossini and Chickeeduck, all of which are sold in Australia.