Hi, my name is Michael Elkin and I am the global manager
for the SCORE Programme here at the International Labour Organization.
The ILO is the only tripartite U.N. agency,
bringing together governments, employers and workers to set labour standards,
develop policies and devise programmes promoting decent work for all women and men.
According to the latest estimates, there are a total of 152 million children in child labour
and 25 million children and adults in forced labour.
Recently a new report released under the Alliance 8.7 Action Group
called Ending child labor forced labour and human trafficking in global supply chains
has been able to make very specific estimates of the role of child labour
and forced labour in global supply chains.
This report estimates that in East and South East Asia,
26 percent of children in child labour are working in global supply chains
and 43 percent are working in upstream industries.
The research results make clear that ending child labour, forced labour and human trafficking
will not be possible without addressing these human rights violations in global supply chains.
It is important to understand the underlying risk factors associated with business conduct
and business environment that give rise to the use of child labour, forced labour and human trafficking.
These risk factors include lack of awareness, capacity, policy commitment
and action on the part of business in relation to their responsibilities.
Economic and commercial pressures can also play a role in driving
some business to use child labour and forced labour.
Many industries for example face a price-cost squeeze along with
short-term supplier relationships, volatility in order volumes and timing,
late changes in orders and delays in payments.
All of these factors, coupled with a supply of vulnerable workers and weakness in the rule of law,
can incentivize the use of child labour and forced labour,
and exacerbate other well-known challenges in global supply chains
that include workers being exposed to unsafe working environments
excessive overtime, unreasonably low wages, and even unpaid wages.
All of these highlight the need for action in global supply chains.
Improving the performance of the supply chain is a major challenge for many large companies,
both international and local.
This challenge can include compliance with social and environmental standards
as well as quality management of product lines and services.
Often this challenge is met with various compliance audits that are conducted on a regular basis
and seek to ensure that the suppliers are following standards set by these large companies.
However, it is becoming increasingly clear that audits alone are not improving the performance of suppliers.
Large “lead buyers” who extensively utilize outsourcing in their business strategies
must go beyond the audit to address the social and environmental risks in their supply chains.
We know that the challenges are very complex and the solutions will not be simple or straightforward.
The research outlines areas in which governments and businesses
can make a difference in conjunction with social partners and other crucial stakeholders.
Governments need to address the public governance gaps and socio-economic pressures
that create space for non-compliance
and that render people vulnerable to the violation of fundamental labour rights.
Businesses need a more comprehensive, whole-of-supply chain approach to due diligence,
which is preventative, prioritised in accordance with risk,
integrated into an enterprises’ risk management and decision-making,
and grounded in social dialogue and meaningful stakeholder engagement.
Multi-stakeholder partnerships and inclusive business approaches are needed
both in localized efforts to address root causes,
and as broader platforms to enable collaboration, focus efforts, and share experience.
So, I congratulate you now for taking the first important step in tackling this complex and difficult challenge,
and wish you great success with implementing the SCORE Training principles in your supply chains.