Aldi Australia responds to supplier misconduct allegations

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Aldi Australia responds to supplier misconduct allegations

One of the retailers named in a recent Four Corners report into migrant farmworker maltreatment has defended its professional and ethical standards, and announced an investigation of all suppliers mentioned in the program is now underway. Aldi sign

In a media release, Aldi Australia said it took all allegations of misconduct by its suppliers seriously.

"ALDI Australia supports the principle of a strong and sustainable grocery industry for suppliers, retailers and their employees. Over the course of the year we engage with more than 1,000 suppliers, the majority of whom are Australian and have enjoyed growth and success as we have expanded," the company said.

"ALDI has strict Terms and Conditions of Business for suppliers which outline expectations in the areas of compliance, including appropriate compensation and working conditions.

"Should any suppliers be found to be in breach of our supplier standards and Terms and Conditions, we would act swiftly to investigate and address the situation thoroughly. If necessary, ALDI has the right to suspend contracts that do not meet these obligations."

A key commitment suppliers must make in their contracts with Aldi is to a code of conduct for social compliance on issues such as occupational health and safety, the elimination of discrimination, the prohibition of child and forced labor.

"ALDI Stores does not accept illegal, unauthorised or disciplinary deductions from wages.

"ALDI Stores expects its business partners to establish and follow a clear set of regulations and procedures regarding occupational health and safety. Workplace practice and conditions which violate basic human rights are not tolerated.

"ALDI Stores will not tolerate any form of forced labour and related practices, such as lodging deposits or the retention of identity documents from personnel upon commencing employment. The use of corporal punishment, mental or physical coercion and verbal abuse is forbidden."

The company said it required third party social audit reports for "production facilities within countries and categories that are considered at risk for insufficiently enforced social standards", as part of its social monitoring program.

"As the first Australian Supermarket member of the Suppliers Ethical Data Exchange (Sedex), ALDI also benefits from a range of market leading reporting and risk analysis tools.

"These tools help identify and report on areas of high risk in the supply chain including labour standards, health and safety, the environment and business ethics, enabling staff and suppliers to take the necessary steps to address potential issues."

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