MAJOR East Lancashire employer Boohoo must do more to tackle "labour rights violations" according to campaigners.

This comes after the company, which maintains a large distribution hub in Burnley, saw some of the shareholders attempt to remove co-founder Carol Kane last week in response to revelations last year that some of the firms in Boohoo's supply chain paid workers as little as £3.50 an hour and that they had to endure 'sweat shop' conditions.

However, Ms Kane has retained her position in a vote on Friday despite 12 per cent of shareholders voting to remove her and 20 per cent voting against the company's plan to pay £5.5 million to its four executive directors.

A statement issued by Boohoo said: “The Board is delighted that shareholders have recognised the important and very specific role Carol has on the board with a very strong vote in her favour.

“The Remuneration Committee acknowledges that the 79.80 per cent vote in favour of the Remuneration Report represents a significant improvement versus last year.

"The Remuneration Committee looks forward to ongoing engagement with the Group’s shareholders as it continues to shape the Group’s future remuneration policy."

The vote on Friday June 18 was the first held by the company since last year's revelations that some of the workers employed by Boohoo's suppliers were being paid less than the minimum wage and working in conditions that put them at risk of contracting coronavirus, even during the height of lockdown.

A subsequent review commissioned by the firm found that 35 out of 49 suppliers failed a minimum wage probe and that poor conditions prevailed "across the best part, if not the entirety" of Boohoo’s supply chain in Leicester, including some "serious health and safety violations."

The review prompted the company to to review its practices and it has now cut over 400 supplier from its supply chain.

As a result, Sir Brain Legg, who has led to latest review, said he was "encouraged by the determination of all to address the issues which were exposed last year."

However, pressure groups and trade unions have responded sceptically to the company's claims, with Usdaw continually calling on Boohoo to meet with them.

ShareAction, which campaigns for responsible investment, has also said that the nature of Boohoo's business model, which requires clothes to be produced extremely cheaply, was particularly prone to workers' rights abuses.

Spokesperson Martin Buttle said: "Despite Boohoo’s self-styled Agenda for Change, the company’s high speed, low cost business model continues to drive labour rights violations in its supply chain."

He added: "This is a major concern not only for workers and society, but also for investors who recognise the financial impact of poor labour relations and reputational damage."