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18 Jan 2022

ASOS' Response


We are deeply concerned by reports of the non-payment of the minimum wages in the Karnataka supply chain and have been engaging with this issue...our code of conduct clearly states that the nonpayment of minimum wage is a critical issue for ASOS, with business implications for suppliers identified as not meeting our expectations...

We have a consolidated indirect supply chain (through agents) in Karnataka (Appendix A). Our first action on this issue was to contact all our suppliers to get clarity on the situation. We asked them to provide an update on whether their factories have paid workers 100% of wages since 2020, including Variable Dearness Allowance (VDA). We are conducting desktop reviews where suppliers have confirmed that they paid 100% wages, including VDA. We plan to visit the sites on the ground in the coming months to complete an on-site verification by reviewing documentation and carrying out worker interviews.

While our suppliers await a new hearing on the subject on 7th Feb, we have informed them that as a responsible business we expect any outstanding dues to be cleared and will work with them to achieve this.

To support our efforts, we are collaborating with our peers in other brands sourcing from the region, the Ethical Trading Initiative, and Worker’s Rights Consortium. We will continue to keep all relevant parties updated as we proceed with the next steps on this issue...

[The full response is attached]