The success of machine learning models in industrial applications is heavily dependent on the quality of the datasets used to train the models. However, large-scale datasets, specially those constructed from crowd-sourcing and web-scraping, often suffer from label noise, inconsistencies, and errors. This problem is particularly pronounced in manufacturing domains, where obtaining high-quality labels is costly and time-consuming. This paper introduces Vision-Language Sanitization and Refinement (VLSR), which is a vision-language-based framework for label sanitization and refinement in multi-label manufacturing image datasets. This method embeds both images and their associated textual labels into a shared semantic space leveraging the CLIP vision-language model. Then two key tasks are addressed in this process by computing the cosine similarity between embeddings. First, label sanitization is performed to identify irrelevant, misspelled, or semantically weak labels, and surface the most semantically aligned label for each image by comparing image-label pairs using cosine similarity between image and label embeddings. Second, the method applies density-based clustering on text embeddings, followed by iterative cluster merging, to group semantically similar labels into unified label groups. The Factorynet dataset, which includes noisy labels from both human annotations and web-scraped sources, is employed to evaluate the effectiveness of the proposed framework. Experimental results demonstrate that the VLSR framework successfully identifies problematic labels and improves label consistency. This method enables a significant reduction in label vocabulary through clustering, which ultimately enhances the dataset's quality for training robust machine learning models in industrial applications with minimal human intervention.