A staggering 21 million people are currently estimated to be victims of
forced labor worldwide. Domestic work agriculture construction and
manufacturing are among the most prevalent sectors with migrant workers
being particularly vulnerable. Let's talk about forced labor and how we can help
combat this scourge in global supply chains...
At any given moment approximately three out of every thousand workers on the
planet are suffering from some form of forced labor situation. Forced labor
refers to situations in which persons are coerced to work under conditions
that they haven't necessarily chosen themselves, whether by the use of
violence and intimidation, or through more subtle means such as the
withholding of wages or through a accumulated debt, exorbitant recruitment
fees or the retention of identity papers like passports which restrict workers
from leaving their workplaces. Global labor supply chains containing multiple
levels of contractors and subcontractors particularly in the developing world,
where labor laws are either non-existent or not enforced, provide fertile ground
for forced labor conditions to arise. Traffickers and unscrupulous recruitment
agents often prey upon marginalized and less educated workers because their
particular circumstances makes them reluctant to seek help from authorities
and their vulnerabilities makes it easier to coerce and manipulate them
These workers are often forced to take a sizeable loans to pay recruiters up
front for promised jobs in other countries only to learn that when they
get there that the terms of their contracts have changed - often
significantly - and that the job they were originally promised no longer exists.
Once they arrive they often also face dismal working conditions and
chronically low wages that will barely cover their ever mounting interest
charges on their loans. The issue of trafficking and forced labor transcends
economies and industries. There are victims in both the developed and
developing countries in a wide variety of job settings including hospitality
construction apparel and food production and it's pervasive.
The most recent report from the US Department of Labor lists 139 products
produced in seventy five different countries that have either used forced
labor child labour or both. The products includes such items as
cocoa, electronics, footwear and even surgical instruments. This is clearly not
an isolated problem. It is significant both in terms of its scope as well as
its moral implications. So what's the response? Our experience in this era
reveals that leading companies are embracing their obligations under the UN
guiding principles on business and human rights and are taking deliberative steps
to help prevent abuses by promoting greater awareness among their supply
chains and implementing effective standards and action plans which support
the elimination of forced labor in their supply chains. This is quickly becoming a
compliance issue as governments too, are beginning to recognize their obligations
to protect human rights and prevent abuses by enacting regulatory
legislation like the California Transparency in Supply Chains Act and
the UK Modern Slavery Act among others that compel corporate entities to take
actions to ensure that they are not responsible for or contributing to
forced labor practices in their global operations. Beyond complying with the law
companies are increasingly implementing and updating their codes of conduct and
integrating their enterprise risk management systems and programs into
their supply chains. Many companies require contractual commitments and
other measures from their suppliers that allow for more regular monitoring
auditing and reporting of their labor conditions - with a specific focus on
eliminating the potential for trafficking and forced labor within
their supply chain. But some key challenges exist. These include: the
difficulty of detecting and uncovering less visible forms of forced labour and
trafficking; the inability to exercise significant influence or control over
third-party subcontractors and their suppliers - especially as individual
companies coming to terms with the sheer complexity of supply chain webs; and the
difficulty of both mapping and policing them; and of course the regulatory and
lack of regulatory oversight and enforcement in many source countries
which are most often among the poorest. In spite of the clear challenges of
detecting forced labor there are certain employment practices at the supplier
level which may lead to situations of labour exploitation and should therefore
be targeted. Typical elements that buying companies can and should address in
their sourcing policies are the implementation of safeguards against
such things as the retention of passports; recruitment fees that can lead
to worker indebtedness; the withholding of wages; the physical or psychological
coercion of workers, and of course absolutely any restrictions on freedom
of movement. It's also important that workers have clear terms of employment
before entering into an employment relationship with a supplier and not
just some empty assurances from recruitment agencies. So how can we help?
This is obviously a complex area and InterPraxis actively supports
companies in addressing issues around forced labour and supply chains. Not only
do we help companies fulfill their compliance and disclosure obligations
with relevant regulations, we also help companies to review their codes and
systems against international best practice to identify any gaps and ensure
that robust supplier requirements are in place. We also work with suppliers to
help them implement appropriate safeguards so that we can help
coordinate a joined up approach where together - we can all help to reduce risks
and eradicate the scourge of forced labour in the supply chain around the
globe.