Cotopaxi repays workers at Taiwan mills for predatory recruitment fees
Source: HR Dive โ
The outdoor apparel and accessories brand has been working to remediate unethical recruitment practices initially identified at two fabric mills in the country in 2024. Managing forced labor risks is a key issue for U.S. fashion companies in regard to sourcing and trade compliance, according to a 2026 Fashion Industry Benchmarking Study published by the U.S. Fashion Industry Association. The issue ranked as survey respondentsโ No. 6 top concern for the year, up from 10th in 2025, per the report. Several apparel companies have grappled with the risk of modern slavery across their supply chains. Ultra-fast fashion brand. Shein, for instance , in 2023 was probed by U.S. senators whether the companyโs goods were made using forced labor. In 2024, Shein reported that it found two cases of child labor in its supply chain, which prompted the brand to suspend orders from those suppliers and conducted investigations.
In 2024, a Skechers supplier was also accused of using forced labor. In 2024, human rights investigation nonprofit Transparentem interviewed more than 90 migrant workers employed by textile suppliers in Taiwan, which revealed that there were forced labor indicators tied to predatory recruitment practices at those facilities, according to Cotopaxiโs 2024 Impact Report . Cotopaxi was one of more than 40 buyers linked to nine Tier 2 and Tier 3 Taiwan-based suppliers with evidence of labor abuses. According to the International Labour Organization , predatory recruitment practices can occur during the recruitment process and lead to forced-labor conditions. This can include workers being charged recruitment fees and debt bondage linked to repayment of those fees as well as deception around the nature and conditions of the work. Cotopaxi maintains third-party audits of all its Tier 1 and Tier 2 suppliers while conducting โnumerousโ onsite visits to help create better transparency and monitoring of its supply chain, per the brandโs 2025 ESG report. Cotopaxi has a total of five fabric suppliers in Taiwan, according to its annually updated supplier data . Aside from facility-level remediation, Cotopaxi said it is working to address the โroot causesโ of forced labor at the systems level by engaging with industry associations and policymakers as well as leveraging its own resources and grant-making activities, according to the 2025 report. Cotopaxi has supported legislation including Californiaโs Garment Worker Protection Act and the New York Fashion Sustainability and Social Accountability Act to combat human rights violations common in the apparel industry. In regard to the labor abuse discovered in Taiwan, Cotopaxi visited suppliers based in the country in December 2024, per the 2024 report. Cotopaxi was also one of many companies seeking to have in-person conversations with the Taiwanโs government, the Taiwan Textile Federation and other government and foreign policy officials to root out abuses at the policy level.
This year, Cotopaxi also worked with the AAFA and peer brands to advance a โNo Recruitment Feesโ standard across Taiwan, advocating for suppliers to bear the cost of recruitment, per the 2025 report. This isnโt the first time Cotopaxi has addressed unethical recruitment within its supply chain. In 2022, a routine third-party audit identified risks associated with predatory recruitment practices at a Tier 1 supplier in the Philippines, including limited access to restrooms and pre-employment medical appointments not covered by suppliers. To resolve the violations, Cotopaxi, alongside a working group and two other brands using the same supplier, tapped a third-party audit and remediation consultancy. In 2024, Cotopaxi announced that the remediation initiative was successfully completed. The plaintiff alleged that he repeatedly contacted Amazonโs HR staff to correct the error to no avail. The officer also said she was forbidden to speak publicly about equity. The plaintiff alleged that he repeatedly contacted Amazonโs HR staff to correct the error to no avail. The officer also said she was forbidden to speak publicly about equity.
โก Effects Interpreter
๐World Economylow impact
What this means for you
- โถGlobal supply chains might feel a slight tremor as businesses adjust.
- โถTrading partners on the other side of the world might feel a distant nudge.
๐๏ธLocal Economylow impact
What this means for you
- โถCareer changers eyeing this field might want to watch closely.
- โถApprenticeships and training schemes in the sector could be affected too.
๐ฆRates & Bankslow impact
What this means for you
- โถSavings accounts could see their rates nudged only after a broader trend emerges.
- โถSavings rates can lag behind news like this by weeks, not days.
โค๏ธHealthmedium impact
What this means for you
- โถA measured response usually serves communities better than alarm.
- โถTaking a break from the headlines can do more good than scrolling on.
๐ทWealthmedium impact
What this means for you
- โถChecking eligibility for support schemes early can save stress later.
- โถCareer uncertainty is a good prompt to trim non-essential spending.
๐ Housinglow impact
What this means for you
- โถHouse prices and rents are unlikely to shift the moment this news breaks.
- โถA cooling or warming market usually takes months to fully show up in prices.
๐ Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone โ the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UAE depends more on local healthcare capacity than the figures above.