Aussie supermarkets caught up in child labour scandal

Coles, Woolworths and Aldi have all admitted sourcing prawns from a Thai company accused of using child workers kept locked inside a factory under threats of violence.

The supermarket giants made the admission after an Associated Press investigation alleged that Thai Union uses forced labour, including child labour, at a prawn peeling plant near Bangkok, The Sydney Morning Herald reports.

The report claims that hundreds of workers are mistreated and some are even detained inside the Gig Peeling Factory in Samut Sakhon.

All three supermarkets said they were investigating their supply chains, leading to fears that Australia could face a prawn shortage over the summer.

IGA Supermarkets said that Thai Union was not their major supplier but could not rule out stocking their products.

"Some of our other locally based seafood suppliers may purchase prawns from Thai Union as they are one of the largest seafood suppliers in the world," a spokesman for IGA owner Metcash said in a statement to Fairfax.

Thai Union has also responded to the allegations with its president and chief executive Thiraphong Chansiri calling the AP report a "wake-up call".

"Any illegal or unethical labour practices are unacceptable to Thai Union, and we are committed to take the necessary actions to ensure products in our supply chain are brought to market in a way that is consistent with our values to operate with integrity and with the utmost respect for human rights – nothing less will be tolerated," Mr Thiraphong said.