All posts by martijn

New Paper: Blockchain and Modern Slavery

While blockchain was designed as a ledger for cryptocurrency transactions, it can record transactions of anything of value. Blockchain is increasingly used to prove the integrity of commodities, tracing their supply chain journey from the source to the end user. Yet, transferring this technology from a cryptocurrency context to a supply chain setting is not without difficulties. This article explores the implications for multinational and transnational companies in using blockchain as a means to address modern slavery. The paper identifies five challenges: verification, inclusion, trust, privacy, and normativity.

The paper was published in AIB Insights. A PDF version of the paper is also available.
 
Boersma, M., & Nolan, J. 2020. Can Blockchain Help Resolve Modern Slavery in Supply Chains? AIB Insights. https://doi.org/10.46697/001c.13542.
 
 
Boersma-M.-Nolan-J.-2020.-Can-Blockchain-Help-Resolve-Modern-Slavery-in-Supply-Chains-AIB-Insights.-https-doi.org10.46697001c.13542

‘Bullying’ clothing companies are asking struggling suppliers for discounts

Prominent Australian retailers been caught out again for “unsavoury” behaviour during the coronavirus pandemic – including asking for discounts and pushing back orders from struggling suppliers overseas.

Kmart has backflipped on its request for a 30 per cent discount it forced on its Bangladeshi suppliers, but is still enforcing tight turnarounds.

Mosaic Brands, which owns Crossroads, Millers, Noni B and more, has told its suppliers, also in Bangladesh, that it won’t be meeting some of its payments for eight months, according to the ABC.

Mosaic was called out early in the pandemic for its pushy sales techniques, peddling hand sanitiser and face masks to shoppers to capitalise on the panic-buying surge.

The behaviour is nothing short of bullying, business ethics expert Martijn Boersma said.

Continue reading ‘Bullying’ clothing companies are asking struggling suppliers for discounts

Addressing Modern Slavery at Adelaide Writers’ Week

“Does our globalised economy rely on the exploitation of the vulnerable? Are we, as consumers, an intrinsic part of chains of supply and complicity that keep 40 million people enslaved? Justine Nolan and Martijn Boersma wrote Addressing Modern Slavery to define and dissect a phenomenon we think of as remote but is more prevalent than at any time in human history. Based on years of forensic research, this impressive book is mandatory reading for anyone committed to ending exploitation and the scourge of modern slavery.”

Coronavirus Hits Precarious Workers in Supply Chains Hardest

Computer chip and circuit board factory, Jiangxi, China. Shutterstock

The COVID-19 coronavirus is officially a pandemic, the US and Australian share markets have collapsed, both governments have unveiled stimulus packages, and Australia’s trade union movement is worried about the position of casuals. But things are worse overseas, including for the workers who make products for Australians.

20,000 garment workers in Cambodia face job losses from factory closures because of shortages of raw materials from China and reduced orders from buyers in the virus-affected locations including the United States and Europe. Thousands have already lost their jobs in Myanmar. Garment workers in Sri Lanka and Bangladesh are uncertain of their futures.

Continue reading Coronavirus Hits Precarious Workers in Supply Chains Hardest

Cotton Value Chain – Labour Risk Heat Maps

The Queensland University of Technology and the University of Technology Sydney have been funded by the Cotton Research and Development Corporation to research “Strategies for improving labour conditions within the Australian cotton value chain”  (2019-2022).

Non-Government Organisations are active in pressuring fashion brands to be accountable for their social and environmental claims. Labour is currently in the spotlight. Over 20 million employees in garment manufacturing in Asia Pacific are paid below the minimum wage. ILO ratification in Australia’s export countries is low and non-compliance high (up to 90%). This project will provide information to enable the cotton industry to understand labour issues along its value chain and recommend strategies for the industry to explore.

Phase 1 produced a heat map, based on secondary data, which provides an overview of labour issues affecting the textile and apparel industry in primary export destinations in the Australian cotton value chain. Click on the image below to see the full interactive heat maps which were created using Tableau.

Labour Risk Heat Maps

Continue reading Cotton Value Chain – Labour Risk Heat Maps

Submission: Wage Theft Senate Inquiry

Underpayment is becoming an increasingly prevalent issue in Australia, with certain industries and sub-sets of workers more affected than others. Given the increasing prevalence of wage theft, workers can become resigned to accept employment below the minimum wage due to expectations that underpayment is unavoidable. While the Fair Work Ombudsman (FWO) plays a key role in identifying and rectifying underpayments, increased funding is required to allow it to effectively uncover breaches. Both mandatory and voluntary supply chain measures can play a key role to help target the issue of underpayment. Our submission recommends new legislation be passed to better regulate labour standards and the gig economy, strengthening enforcement of existing regulations.

Wage Theft Submission FINAL

Employer Calls to Simplify the Award System are a Trojan Horse

This week an already impressive list of wage theft offenders has gotten a bit longer.

On Monday, the likes of Caltex, 7-Eleven, Pizza Hut, Domino’s Pizza and Bunnings (to name a few), were joined by Coles, which underpaid its staff $20 million over six years.

On Wednesday, Target admitted to underpaying workers about $9 million.

On Thursday, Super Retail Group – whose brands include Rebel and Super Cheap Auto, said that it had short-changed workers by $8 million more than it had originally estimated, bringing the total to $61.2 million.

On Friday, cleaning and catering company Spotless admitted to underpaying workers $4 million.

The total wage theft uncovered this week: $94.2 million.

Continue reading Employer Calls to Simplify the Award System are a Trojan Horse

Interview on 2SER The Daily: The Rise of Wage Theft Scandals, Will They Ever End?

Last week has seen the list of wage theft offenders get longer. Overall, the total wage theft revealed last week summed up to 94.2 million dollars. According to PwC, Australian workers are underpaid 1.35 billion dollars each year – that means that 1 out of 7 workers aren’t getting their wages, as well as superannuation, overtime, and entitlements like properly paid sick leave. Despite the statistics and companies being called out for wage theft, we’ve seen this issue continue. Which begs the question – why? To dive deep into this issue, I spoke to The Daily on 2SER.