Quiz ‘concerned’ by link to cheap labour probe
The firm has launched an investigation into the allegations
Scottish fashion retailer Quiz says it is “extremely concerned” by reports linking the firm with cheap labour malpractices in Leicester.
The company became the latest to be named in an investigation into the use of workers being paid below the National Living Wage.
Online retailer Boohoo has already hired a leading QC to look into the allegations, and today Glasgow-based Quiz said it was “very grateful” to the press for highlighting these alleged breaches.
In a statement to the stock exchange, the group said it is currently investigating the reported allegations in The Sunday Times which, if found to be accurate, are “totally unacceptable”.
The company said that it believes that one of Quiz’s suppliers based in Leicester has used a sub-contractor in direct contravention of a previous instruction from the company. It is this sub-contractor that is subject of the National Living Wage complaint. Quiz has immediately suspended activity with the supplier in question pending further investigation.
“The board is aware that Quiz has clear-cut social responsibilities and legal obligations and understands the critical importance of ensuring the group’s products are sourced from manufacturers whose business operations conform to appropriate standards.
“All suppliers to Quiz must comply with the group’s Ethical Code of Practice. Relationships with any suppliers who fail to comply with this code or meet the Group’s standards will be terminated.
“Quiz monitors its supplier base through audits and site visits and is in the advanced stages of appointing an independent third-party partner to provide more regular audits of suppliers in the Leicester region.”
The board said it is committed to a full review of its auditing processes to ensure they are robust enough to ensure on-going compliance with our Ethical Code of Practice throughout the Group’s supply chain.
Tarak Ramzan, chief executive of Quiz, said: “We are extremely concerned and disappointed to be informed of the alleged breach of National Living Wage requirements in a factory making QUIZ products. The alleged breaches to both the law and Quiz’s Ethical Code of Practice are totally unacceptable.
“We are thoroughly investigating this incident and will also conduct a fuller review of our supplier auditing processes to ensure that they are robust. We will update our stakeholders in due course.”