Rheem
Lacks transparency. Publishes some details, but doesn't show its workers are paid and treated fairly.
Last researched 3 November 2026 · 5 sources
Australian maker of hot water systems.
There's no proof Rheem pays more than the legal minimum, which in China is below a living wage, and it has no full independent audit.
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Why it's graded Lacks transparency
- Not met: Meets 3 of 6 Good requirements.
- Holds the grade back: It doesn't show that workers are paid a living wage, and isn't certified as working towards one. On Track needs at least one of these.
- It isn't Harm on record, because there's no serious confirmed problem on its record.
- Lacks transparency is still a poor grade: in supply chains like this, workers who can't be seen to be treated fairly are usually underpaid or unprotected.
Good requirements 3 of 6
- Not met: Pays a living wage, or holds a strong fair-pay certificationLiving wage: no evidence
- Not met: Respects worker rightsSome of its products are made in China, where unions are heavily restricted, and it has no full supply chain audit.
- Not met: Supply chain independently audited or certified, or at least 80% made in countries with strong labour standards
- Met: No child or forced labour findings or links
- Met: Names the factories or farms that make its products, or is fully certified by a scheme that holds and audits that listMakes its products in its own factories
- Met: High-risk raw materials (such as timber and cotton) traced or certified, or not a major part of its rangeNone recorded in a major share of its range
Red flags 2
- Red flag: No evidence it pays a living wage
- Red flag: Made partly in countries with poor worker rights, without a full independent audit of its supply chain
| Star | Awarded for |
|---|---|
| Gives workers a real voice |
Stars only show on Good companies. About stars
Where it's made
From Rheem's own disclosure: it makes its products in its own factories.
| Country | Worker rights | Legal minimum wage | Forced labour risk |
|---|---|---|---|
| Australia | Strong protections | About a living wage | Low |
| China | No guarantee of rights | Below a living wage | Moderate |
| Japan | Strong protections | Close to a living wage | Low |
| New Zealand | Strong protections | About a living wage | Low |
| Vietnam | Systematic violations | Well below a living wage | Moderate |
Evidence
What we found
- No high-risk raw materials (such as timber and cotton) are recorded in a major share of its range, so the raw-material check doesn't hold it back for Good.
- Owns or runs its own production
- Modern slavery statement
- Actively empowers workers (ownership, worker committees, union agreements, training)
Research notes Rheem says most of its water heater tanks are made in its own factories in Sydney (Rydalmere, Revesby) and Melbourne (Moorabbin), with other own plants in New Zealand and Vietnam; it gives no split by country. Parts and some products come from suppliers mainly in Australia, Vietnam, Japan and China. Factory staff are covered by enterprise agreements with four unions. It audited 8 Chinese suppliers in 2025 but publishes no supplier list, audit results or supplier-worker living wage commitment.
What independent sources say
| Source | Result | Details |
|---|---|---|
| Australian Modern Slavery Register | Listed | Rheem Australia Group's sixth modern slavery statement (calendar 2025) reports about 1,850 tier 1 suppliers, 8 onsite audits of China-based suppliers and no confirmed cases. View |
| Baptist World Aid Ethical Fashion Report | Not covered | Baptist World Aid's ethical reports do not rate hot water system makers; its Electronics Industry Report ended in 2016. View |
Sources and actions
Sources 5
Show all 5 sources
- Rheem opens its upgraded Rydalmere manufacturing facility (Australian Manufacturing, 2017) · search the archive · Electric water heaters are the backbone of Rheem's Sydney manufacturing
- Rheem domestic hot water brochure (Reece) · search the archive · Rheem hot water systems sold through Reece plumbing stores in Australia
Published by Rheem or its owner
- Rheem Australia Group Modern Slavery Statement 2025 · search the archive · Own factories in Sydney, Melbourne, NZ and Vietnam; suppliers mainly AU, VN, JP, CN; union enterprise agreements; 8 audits; Paloma Rheem owned
- Rheem Australia - Product accreditation · search the archive · Most Rheem water heater tanks made in Sydney and Melbourne; some small electric heaters made overseas in Rheem-owned plants
- Rheem Australia - Company profile · search the archive · Paloma has been the ultimate controlling entity of Rheem Australia since 2001
Company details
- Headquarters
- Australia
- Last researched
- 3 November 2026
- Cite this page
- Labour Lens, "Is Rheem ethical? Labour rating", https://www.labourlens.net/brand/rheem, last researched 3 November 2026, accessed [date].
- Method
- Researched with AI assistance against published rules. How we check · What Lacks transparency means
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Something missing or wrong?
Grades are opinions based on the evidence listed here. Send us evidence, or a right of reply if you represent Rheem.