Fast fashion giant Shein is showing "wilful ignorance" by struggling to answer questions about its supply-chain, one MP says
McDonald's and other major businesses are giving evidence about work practices as the government prepares a major shake-up of workers' rights
During an earlier session, Tesco and McDonald's said "criminal gangs" were behind the recruitment of alleged modern slavery victims
The firms were facing questions over a BBC report that found signs of forced labour in the UK had been missed for years
Responding to a separate BBC investigation - which found McDonald's workers are still facing sexual abuse and harassment - Alistair Macrow said the claims are "abhorrent"
UK McDonald's boss questioned on BBC reporting of sexual harassment claims
Tesco's Lorains is then asked about the company's approach to sourcing from Xinjiang in China.
She says the company has no operations there and has not sourced from that region since April 2022.
Allegations of forced labour in the region have been consistently denied by the Chinese government.
The committee chair asks Lorains from Tesco what could encourage companies to be more vigilant about modern slavery incidents.
She says there are three things companies are urging the government to consider:
Byrne says they are trying to understand what went wrong.
Lorains says there "clearly was a criminal gang involved in the recruitment of workers."
She says, "as soon as we were made aware, we put in place a rapid investigation and our remediation."
The seasonal worker and migrant worker schemes, she says, "are placing an increased risk of this," and adds that it is essential they are "100% vigilant all the time."
Cooper then asks Lorains if it is concerning that it took an external source for Tesco to make changes, as Tesco did not identify the difficulties themselves.
Lorains says they take human rights “incredibly seriously”.
She says Tesco has a risk-based approach, starting with risk assessment and extending to "grievance remediation", where concerns can be raised.
She says it is “our duty to remain vigilant and transparent.”
Away from the McDonald's boss, Conservative MP John Cooper now turns to Tesco's Group Quality, Technical and Sustainability Director, Claire Lorains.
He asks about a BBC report into modern slavery and when she first became aware of issues related to one of the company's suppliers named in the report.
Lorains says they were made aware of the allegations in 2022 and worked with anti-slavery charity Unseen to conduct a "thorough investigation", adding that details were shared with the police and others.
"We stopped taking from that site as soon as we had concluded the investigation," she says.
For context: A BBC investigation found signs that modern slavery victims were being forced to work at a McDonald’s branch or a factory (which supplied bread products to Asda, Co-op, M&S, Sainsbury's, Tesco and Waitrose) were missed for years
The CEO goes on replying that staff who work at McDonald's restaurants and franchises are different groups - but he is adamant that "everybody who works under the McDonald's brand experiences the right employee experience."
He says, "we hold franchisees to account too," and such stores are regularly reviewed.
"Harassment is an issue we have to face up to in every part of our business - regardless of who owns the restaurant. We don't see any particular trend that says it happens more in one part," he said.
Macrow says they run a "better business" because of franchising, but those working in franchises are employees of a "separate business".
He says it is the model that has "underpinned the success" of McDonald's.
Chair Liam Byrne pushes back, quoting Macrow from a previous session in 2023, when he stated that duty of care "certainly is a legal responsibility".
However, Macrow later wrote to them, saying the responsibility lies with the franchisee, altering his earlier statement.
Macrow says the letter reflects the correct position and that "there is a misunderstanding" when looking at the transcript from the meeting.
Labour MP Matt Western is the next to question Macrow. He tells the McDonald's boss that 700 cases is "a staggering number".
Macrow responds: "One case is too many as far as I am concerned."
He adds that he is determined to eliminate all forms of harassment from the business.
For context: More than 700 McDonald’s workers have joined a legal action against the company, accusing it of failing to protect them. It comes after allegations of sexual harassment and abuse at its restaurants across the UK
Reynolds goes on asking how the committee can be certain McDonald's isn't keeping problems from the public.
Macrow responds by giving his word and says he is being transparent.
Reynolds points out that Macrow gave his word when providing evidence in 2023, adding that the "words don't match the rhetoric".
Reynolds then asks if, at the time, "McDonald's was negligent in not spotting these signs of modern day slavery?"
Macrow says no.
Reynolds then asks if Macrow, visiting a restaurant at the time, would have noticed signs of modern slavery.
Macrow replies, "I don't think I would've spotted it."
Up next to question Macrow is Liberal Democrat MP Joshua Reynolds.
Reynolds brings up the BBC investigation from August 2024, which revealed that nine victims were forced to work at a McDonald's branch in Cambridgeshire. He asks the McDonald's boss why this wasn’t detected.
Macrow explains that a criminal gang infiltrated restaurants in 2016, adding that the nature of modern-day slavery was different at the time. He says it would be very unlikely for such cases to go unnoticed today.
Returning to earlier, Macrow addressed zero-hour contracts, defending the flexible arrangements McDonald’s offers. He explained they’re especially popular with younger workers, allowing them to take on more shifts during holidays or fewer when studying.
"I don't want to force people to do something they don't want to do. Part of working for McDonald's is the flexibility it brings to our employees.
"The contracts we offer are fair – they do not create any sort of systemic behaviour or issue or imbalance of power."
Byrne asks Macrow when he expects McDonald's to reach a position where there are no allegations from staff of abuse or harassment in its restaurants.
Macrow says he will not be satisfied until there are none.
He adds that McDonald's is operating in a world where harassment is an issue for businesses and organisations but emphasises they can never be complacent.
He states that he cannot guarantee a time when no such allegations will arise, noting he would be concerned if nobody was speaking up, as it could suggest something was preventing people from doing so.
He reiterates that he will not tolerate harassment of any kind.
Chair Liam Byrne now asks Macrow what the Equality and Human Rights Commission (EHRC) has most recently requested of McDonald’s.
Macrow says they are working with the EHRC to "strengthen" their arrangements, and they have agreed their involvement with them will "evolve" over time.
"We're in ongoing conversation about strengthening it," but what that strengthening might entail is not yet clear, Macrow says.
He adds they are evolving their business plans "all the time".
Continuing the exchange on a shift manager asking for sex in return for extra shifts, Macrow says it is "very rare" for a manager to be the scheduler of the shifts.
"That responsibility often changes from one period to the next," he says.
It does not create a situation where one individual can control who works, what, and when, adds Macrow.
Byrne then brings up zero-hours contracts, highlighting a BBC report about a woman working at a Midlands branch who claimed a shift manager asked her for sex in exchange for extra shifts.
Macrow describes that behaviour as "completely unacceptable".
He explains that this is a behavioural issue, not one linked to the type of contract. He adds that everyone at McDonald's can choose between a flexible or guaranteed-hours contract.
According to Macrow, flexible contracts offer the same provisions as guaranteed-hours contracts, except they don't specify the number of hours. He argues that some people prefer the flexibility.
Byrne asks if Macrow accepts that this kind of "abuse flourishes when there is an imbalance of power in the workplace?"
"The type of allegations you describe are not widespread," Macrow says, but adds that they do need to be eradicated from business.
Byrne pushes back: "It doesn't sound like these are isolated incidents, it sounds like a pattern of abuse in what's become, frankly, a hotbed of harassment."
Macrow says he doesn't want to "belittle" the allegations, but by putting these numbers in context, he explains that the majority of incidents refer to the period before a new action plan was implemented.
Byrne asks how many McDonald's managers have been dismissed.
Macrow says people are "speaking up", adding that 75 allegations of sexual harassment have been made, 47 have been upheld with disciplinary action, and 29 individuals have been dismissed.
Macrow says the alleged cases published by the BBC today are "abhorrent, unacceptable, and there is no place for them in McDonald's".
Asked how they have been allowed to happen, he says he would like to be able to investigate each allegation to understand them and ensure they can take "appropriate action".
The measures McDonald's has put in place mean it is able to offer a "secure, safe workplace where people are respected", he says, adding he hears from his staff the plan is "working".
Chair Liam Byrne MP opens the session and thanks the witnesses for making time to give evidence.
He tells Macrow that there are 160 cases of abuse reported to the BBC, 300 reported to the equalities watchdog, and 700 former employees taking legal action against the company.
"Has McDonald's basically now become a predator's paradise?" he asks.