Tag Archives: government

Why do Companies Find it so Hard to Choose Between Profit and Principle?

Businesses with ties to the Xinjiang province in China find themselves at a junction.

Caught in debates concerning Uyghur people being the victim of modern slavery and genocide, they must deal with concerns expressed by Western governments and human rights groups, and an increasingly agitated Chinese Communist Party.

Some commentators have suggested that foreign companies that (in)directly profit from the systematic exploitation of Uyghurs in China must choose between profit and principle.

It seems like a straightforward question: do companies want to profit from the state-organised repression, exploitation and extermination of an ethnic minority, or do companies condemn the treatment of Uyghur people in China and deal with the backlash?

The conundrum underlying the question is as old as capitalism itself: what social costs are we willing to accept in order for companies to make a profit?

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Banning Goods Produced By Uyghur Forced Labour

The Customs Amendment (Banning Goods Produced By Uyghur Forced Labour) Bill 2020 is currently under consideration by the Australian Senate Foreign Affairs, Defence and Trade Legislation Committee and a report is due by 12 May 2021.

Professor Justine Nolan and Dr Martijn Boersma have made a submission arguing that the Australian Government should:

  1. Expand the proposed Bill to prohibit the importation of all goods produced or manufactured using forced labour (regardless of their geographical origin).
  2. Consider the ability to impose fines on importers and end-buyers who import prohibit good and apply such fines for the provision of institutional support for survivors of trafficking and modern slavery.
  3. Ratify ILO Protocol of 2014 to the Forced Labour Convention, 1930 (PO29) to ensure the development of  holistic legislative framework that will sit alongside the Modern Slavery Act, and a new law that bans the importation of goods produced or manufactured using forced labour.
  4. Consider publicly disclosing which goods are prohibited from importation, as well as associated importers, manufacturers and geographical locations.

Call for Papers: Modern Slavery and the Employment Relationship

Following the United Kingdom in 2015, Australia introduced its Modern Slavery Act in 2018. The Government produced guidance documents to recognise that modern slavery sits on a continuum of exploitation and should not be addressed in isolation. It acknowledges that there is a spectrum of abuse and that it is not always clear at what point poor working practices and lack of health and safety awareness seep into instances of human trafficking, slavery or forced labour. The overarching aim of this special issue is to examine how exactly employment relationships can deteriorate into forms of labour exploitation and modern slavery. We set out to identify the key factors contributing to this process, to determine what approaches can reduce the risk of labour abuses occurring, and to discern novel ways to remediate exploitation once identified. We aim to create a better understanding of modern slavery and the employment relationship by establishing how and why workers may move along the continuum of labour exploitation.

Timeline:

  • 25/09/2020 – Submission of abstracts to the guest editors
  • 12/10/2020 – Confirmation/acceptance of abstract and invitation to submit full paper
  • 31/01/ 2021 – Full paper submission for presentation at Symposium
  • 02/2021 – Symposium in Sydney – alternatively a virtual symposium will be held
  • 01/03/2021 – Full original papers to be submitted online to the JIR for peer review
  • 28/10/2021 – Accepted papers to be finalised/submitted online to the JIR

 

Modern Slavery Special Issue

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.

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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

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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.

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Support for Survivors of Modern Slavery

The Thomson Reuters Foundation News details how Brazil is aiming to build a network of social workers to support people rescued from modern slavery, and help prevent would-be victims from being trafficked. “The social workers would be primed to offer immediate post-rescue care to victims, and provide follow-up assistance such as ensuring that survivors are signed up to government aid schemes and children are enrolled in school.”

Providing adequate institutional support is absolutely critical, given the growing number of (modern slavery) laws and amendments that are introduced. It is vital that governments prepare for the potential flow-on effects. In the excerpt from our book “Addressing Modern Slavery”, Justine Nolan and myself address the importance of support from authorities for modern slavery survivors and the key role that government has to play:

Nolan, J. & Boersma, M. (2019). Addressing Modern Slavery. UNSW Press, Sydney

New Book Sheds Light on Modern Slavery

The Australian cleaning industry has come under scrutiny for being at risk of modern slavery in a new book which draws links between consumers, business and government, and an estimated 40 million people who are modern-day slaves.

Addressing Modern Slavery explains the global conditions that have allowed slavery to thrive to the point “where there are more slaves today than ever before in human history”.

Authors Associate Professor Justine Nolan from UNSW Sydney and Dr Martijn Boersma from UTS describe well-known examples from overseas, such as women in apparel sweatshops and children in brick kilns – but also examples that are closer to home.

The authors include a submission from a former cleaner to the Parliamentary Inquiry into Establishing a Modern Slavery Act in Australia who noted exploitation in the cleaning industry is very common.

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Modern slavery laws – what do they mean for your business?

Modern slavery and supply chain transparency are some of the new buzz words attracting increased attention from the corporate sector, write Justine Nolan and Martijn Boersma.

In 2018, Australia (and NSW) enacted modern slavery laws which require entities to report on the risks of modern slavery in their operations and supply chains and actions taken to address those risks. This new law will impact companies, law firms, universities and the Australian government who will now need to have a better understanding about how their operations and procurement practices may be enabling modern slavery.

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‘Corporate Social Responsibility’ is a Band-Aid for a Broken System

When it comes to doing what is morally right, there are some things that are best not left to the market, writes Martijn Boersma, lecturer in the UTS Management Discipline Group.

Last week, CNBC reported that a Goldman Sachs analyst wrote in a note to clients: “Is curing patients a sustainable business model?” The argument he allegedly put forward was that healing people with a one-shot cure does not bring in the same revenue stream that chronic therapies do and is therefore bad for business in the long run.

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