Tag Archives: exploitation

Elevating Ethical Practices in the TCF Industry

Ethical Clothing Australia Week 2024 showcased a dynamic discussion in Sydney on transparency, risk mitigation, and tackling exploitation within the textile, clothing, and footwear (TCF) industry. Co-hosted with the University of Sydney’s Modern Slavery Unit and Business School’s MBA Dimensions Program, the panel brought together industry experts and advocates to address challenges and chart a path toward ethical practices.

National Manager Rachel Reilly emphasised the importance of empowering consumers to make ethical purchasing choices while eradicating exploitation in Australia’s TCF industry. The panel highlighted five key takeaways for transforming the sector:

  1. The Role of Unions in Worker Protection
    Unions provide a vital voice for workers, particularly those in precarious positions. As Jenny Kruschel of the CFMEU noted, workers need safe spaces to raise concerns without fear of retaliation. Research indicates a strong correlation between unionized workforces and reduced instances of modern slavery, underscoring unions’ essential role in supply chain transparency.
  2. Beyond Modern Slavery Statements
    The shift toward human rights due diligence marks a crucial evolution in corporate responsibility. Associate Professor Martijn Boersma stressed that businesses must move beyond reporting risks to actively addressing them through robust policies and proactive measures.
  3. Consumers Driving Change
    Consumer awareness has surged, with many Australians recognizing their potential connection to modern slavery through everyday purchases. Carolyn Kitto OAM of Be Slavery Free emphasized that governments must support consumers by rejecting imports linked to forced labor, encouraging ethical, local alternatives.
  4. Government Procurement as a Catalyst
    Ethical procurement by governments—backed by their significant economic footprint—can provide much-needed certainty for local manufacturers. Andrew Quinn of ABMT Apparel advocated for breaking down procurement projects to make them accessible to smaller, ethically accredited businesses.
  5. The Power of Transparent Supply Chains
    The New South Wales Ethical Clothing Extended Responsibility Scheme, a pioneering regulatory framework, demonstrated the value of granular transparency. As The Hon. Dr. Sarah Kaine highlighted, re-operationalizing such initiatives could ensure fair treatment of workers across supply chains.

The panel reaffirmed that collective action—spanning consumers, unions, businesses, and government—is essential to building a fairer, more ethical TCF industry. Complete coverage of the event can be found here.

Revealed: Weak Remedy Under the Australian Modern Slavery Act

Effective remedy is a key element of human rights protection. The United Nations’ Guiding Principles on Business and Human Rights (UNGPs) stress the importance of both state and business entities providing access to effective remedies. Despite this, the effectiveness of remedial mechanisms varies, with remediation emerging as a shortfall in Australia’s efforts to meet international legal obligations and business standards. This research delves into the practical challenges and responses to remediation, leveraging insights from a detailed study on the effectiveness of the Modern Slavery Act 2018 (MSA) in Australia. It draws on insights from a comprehensive, multi-year collaborative study to explore how businesses interpret and respond to the remedial requirements outlined in the MSA.

It tackles three pivotal inquiries concerning the provision of remedies:

  1. Whether companies are actively facilitating remediation or merely reporting such actions;
  2. The types of remedies most commonly reported; and
  3. The extent to which key stakeholders are involved in developing these remedies.

The findings, published in a Special Issue of the Journal of Modern Slavery, on “Access to Remedy for Survivors of All Forms of Slavery, Trafficking and Forced Labour” suggest that the Modern Slavery Act falls short in promoting effective remediation processes. It highlights a lack of significant engagement by businesses in remediation efforts under the MSA, indicating that the Act may not be effectively facilitating remediation processes.

Submission: Ethical Clothing Extended Responsibilities Scheme 2005 (NSW)

The Inquiry into the Ethical Clothing Extended Responsibilities Scheme 2005 (NSW), undertaken by the Modern Slavery Committee, is a comprehensive evaluation focused on the Scheme’s role in mitigating modern slavery within the clothing manufacturing sector of New South Wales (NSW). It delves into the textiles, clothing, and footwear (TCF) industry’s characteristics, examining aspects such as industry size, workforce demographics, supply chain complexities, and the prevalence of modern slavery. Additionally, the inquiry reviews the Scheme’s current application, its alignment with international human rights standards, and the need for any modifications to enhance its effectiveness. It also explores the Scheme’s enforceability, including methods to promote compliance, and considers extending the Scheme to other industries vulnerable to modern slavery due to their supply chain characteristics. This investigation is crucial for identifying strategies to combat modern slavery, ensuring that the TCF industry, and potentially other sectors, operate in line with global human rights commitments and provide better protection for workers in NSW.

My co-authored submission offers several recommendations to enhance the Ethical Clothing Extended Responsibilities Scheme to mitigate modern slavery within the clothing manufacturing sector NSW:

  1. Promote Supply Chain Mapping: The scheme’s unique approach to examining the entire supply chain from retailer to outworker helps in identifying vulnerabilities and instances of modern slavery that may be overlooked by Commonwealth legislation. It’s suggested that state action is needed to mandate such mapping for smaller entities not covered at the Commonwealth level.
  2. Create a Supply Chain Database: The establishment of a comprehensive database to capture detailed supply chain information is recommended. This would aid various stakeholders, including the NSW Office of Industrial Relations, the Fair Work Ombudsman, and the NSW Anti-Slavery Commissioner, by providing them with readily accessible information.
  3. Articulate Collaboration between Government Agencies: The proposals for supply chain mapping and database creation are in line with the objectives of both NSW and Commonwealth governments to combat modern slavery. The recommendation emphasizes enhanced inter-agency collaboration, which can augment existing policy goals and lead to more effective oversight and action against modern slavery within supply chains.
  4. Explore Extension of the Scheme: The recommendation suggests that the scheme could serve as a model for other industries. By enhancing transparency, accountability, and worker protection, it could pave the way for similar oversight in industries that are at high risk of modern slavery and labor standards violations, especially those industries with many entities below the Modern Slavery Act (2018) reporting threshold.

Why Australia Needs an Anti-Slavery Commissioner

Last week, a 47-year-old Queensland man was charged with 46 offences, including torturing and enslaving deckhands on his fishing boats.

The accused allegedly intimidated and attacked his employees, and withheld food and water. He will appear in court next month.

Australia is estimated to have 41,000 people trapped in modern slavery. People can be subjected to modern slavery through coercion, deception and violence. This includes acts such as grooming, wage theft and restriction of movement.

In Australian and international law slavery is defined as:

the condition of a person over whom any or all of the powers attaching to the right of ownership are exercised.

Modern slavery is distinct from historical slavery in that people are no longer legally owned but are instead subjected to illegal control.

Continue reading Why Australia Needs an Anti-Slavery Commissioner

New Books Network Podcast on “Addressing Modern Slavery”

Before you left your house this morning, chances are that you used products and consumed goods that were produced by modern slavery. From the coffee you drink, to the clothes and shoes that you wear, to the phone that you use, modern slavery is a pervasive global problem that encroaches into the daily lives of all of us.

In Addressing Modern Slavery, Professor Justine Nolan and Associate Professor Martijn Boersma provide a comprehensive and accessible account of the role of businesses, governments and consumers in the proliferation of modern slavery. They address both the gaps in protection of workers in the global supply chain, and what more can be done to protect the dignity and human rights who are denied the chance to earn a decent living. In today’s conversation, we spoke about the emergence of corporate social conscience, the work that laws can do, the role that civil society can play, and a need for better enforcement mechanisms which will adequately address modern slavery. This is a really important book about a global phenomenon that is unsustainable. A must read for businesses, governments and consumers.

Professor Justine Nolan is the Director of the Australian Human Rights Institute and a Professor in the Faculty of Law and Justice at UNSW Sydney. Her research focuses on the intersection of business and human rights, in particular, supply chain responsibility for human rights and modern slavery.

Dr. Martijn Boersma is an Associate Professor at the University of Notre Dame Australia and an Adjunct Fellow at the University of Technology Business School. His research focuses on the intersection of business and society, and includes areas such as labour standards in supply chains; corporate governance and social responsibility; gender diversity in corporate leadership; modern slavery; and employment and industrial relations.

Review of the NSW Modern Slavery Act 2018

On Monday 30 October I gave evidence to the Modern Slavery Committee of the NSW Legislative Council, regarding the review of the NSW Modern Slavery Act 2018. I spoke about the need for continued attention and resolve to ensure both fiscal and ethical responsibility in public spending. A transcript of the evidence can be found below.

Continue reading Review of the NSW Modern Slavery Act 2018

Modern Slavery Good Practice Toolkit

The final instalment of a research series jointly conducted by nine academic and civil society organisations has been made publicly available. The publication, known as the Good Practice Toolkit, offers businesses crucial insights into human rights due diligence and ways to amplify their compliance with Australia’s Modern Slavery Act (MSA).

Drawing upon data collected over several years, the toolkit examines corporate responses to the MSA and their engagement in human rights due diligence. It zeroes in on two notably weak facets of business practice: stakeholder engagement and supplier relations.

The Toolkit’s main recommendations are:

  • Prioritise suppliers with demonstrated respect for human rights.
  • Work in partnership with suppliers in designing and communicating expectations.
  • Conduct meaningful and sustained engagement with workers and their representatives.
  • Engage with relevant stakeholders in the design of policies.
  • Use effective grievance mechanisms as an engagement tool.

The Australian Human Rights Institute (UNSW Sydney), Business and Human Rights Centre (RMIT), the University of Melbourne, the University of Notre Dame Australia, the University of Western Australia and Willamette University, in association with the Human Rights Law Centre, the Business & Human Rights Resource Centre and Baptist World Aid, conducted this research. It follows earlier reports, ‘Australia’s Modern Slavery Act: Is It Fit For Purpose?’, ‘Broken Promises’ , and ‘Paper Promises’ .

Summarised: Review of the Modern Slavery Act 2018

Addressing modern slavery requires more than criminalising the illegal control of or mistreatment of individuals. It necessitates a comprehensive response to the various forms of modern slavery, including human trafficking, servitude, worker exploitation, child labour, forced marriage, debt bondage, and deceptive recruitment.

Australia has recognised this challenge  and has implemented a range of laws, programs, networks, and support services to tackle it head-on. One key component of Australia’s response is the Modern Slavery Act 2018, which focuses on transparency reporting. This legislation mandates large businesses and entities operating in Australia to submit an annual statement to the government, outlining the actions they are taking to address modern slavery risks within their domestic and global operations and supply chains.

To promote transparency and accountability, these statements are made available to the public through the Modern Slavery Statements Register. As of early 2023, the Register has published over 7,000 statements from nearly 8,000 entities headquartered in more than 50 countries. This government-run register is the first of its kind internationally and has already garnered significant attention.

In accordance with the Modern Slavery Act, a review was initiated three years after its commencement, starting on March 31, 2022. The review aimed to assess the effectiveness of the Act in combating modern slavery and explore potential improvements to its framework and administration. It also sought to evaluate whether the law was being taken seriously and effectively implemented. Below you can find a summary of the review and recommendations, as well as the full list of recommendations made.

Continue reading Summarised: Review of the Modern Slavery Act 2018

50 Million People in Modern Slavery Globally; 41,000 in Australia

The latest analysis reveals the disturbing reality that modern slavery continues to imprison millions globally, inclusive of upwards of 41,000 individuals in Australia. In its most recent publication, the Walk Free Global Slavery Index reports that 50 million individuals – with 12 million being children – are ensnared in contemporary forms of slavery, predominantly via forced labour and enforced marriages.

Our consumer-driven society is fuelling this disturbing trade in human suffering. Nations including the United States, England, Germany, and Australia are making substantial purchases of electronics, garments, and textiles, which are largely sustained through forced labour. Sweatshops exploit children by compelling them to toil for about 15 hours daily, remunerating them a mere AU$3, within confines akin to a jail cell.

Senior Lawyer at the Human Rights Law Centre, Freya Dinshaw, points out a shocking fact. She said, “What Australian consumers might not realise is that 80% of the cotton China produces that ends up in clothing that Australians buy, comes from forced labour camps in Xinjiang.” Despite Australia being recognised as one of the top three nations battling modern slavery, its system leaves much to be desired.

Dr Martijn Boersma, an expert on modern slavery, commented, “The Australian Modern Slavery Act asks companies…to address the risks in operations and supply chains and basically report on those actions and the progress they have made.” Nevertheless, experts are calling for Australia to implement even more stringent measures. As Dr Boersma suggests, “What we need is for the government to step in, for example by introducing financial penalties for non-compliance.”

New Research: Is the Australian Modern Slavery Act Fit For Purpose?

The Australian Modern Slavery Act 2018 (MSA) aims to combat modern slavery in the operations and supply chains of Australian businesses by requiring them to report on their efforts to address this issue. However, the question remains whether the Act is fit for purpose. This new report, based on data collected from a business survey and focus groups conducted in 2022 and 2023, offers new insights to inform policy change and business practices by examining the gaps between policy and practice in corporate modern slavery statements.

Effectiveness and barriers

Our investigation gathered input from respondents regarding the MSA’s effectiveness, best practices for implementing remediation measures, and potential reforms. The report presents evidence of corporate responses triggered by the MSA and stakeholders’ perceptions of its impact. Findings reveal a broad consensus that the current corporate responses to the Australian MSA are generally not benefiting victim-survivors of modern slavery. While the MSA raises awareness in the best case, it may also provide a superficial appearance of compliance for businesses that continue to depend on opaque supply chains and cheap labor without substantive commitment to addressing abuses.

Two critical issues highlighted by survey and focus group participants for improving policy and practices to address modern slavery are enhancing supplier relationships and stakeholder engagement. Respondents identified several barriers to effective remediation, including current procurement practices, low trust between suppliers and reporting entities, and inadequate resourcing by businesses for remediation efforts that would compensate and empower victim-survivors of modern slavery. Remediation is a crucial aspect of addressing modern slavery, and effective processes must prioritise risk to people over risk to business.

Remediation and potential reform

The findings also offer insights into practices that may contribute to more effective remediation of modern slavery, providing valuable lessons for government policy focus and businesses seeking to improve their approach to remedy. Survey data indicates that participants who engage key stakeholders in remediation, such as trade unions, report the most effective approaches. Other essential tools include risk management practices like supplier training and increased transparency from suppliers—practices currently utilised by Australian businesses.

Data from this report and previous research demonstrate a strong desire for MSA reform and the need to incentivise improved practices. A majority of survey respondents:

  • Endorse establishing an Anti-Slavery Commissioner;
  • Support harmonising the MSA with international standards, such as the UN Guiding Principles on Business and Human Rights (UNGPs), and emerging legislation in other countries;
  • Agree that mandating human rights due diligence requirements would lead to improved responses to addressing modern slavery;
  • Support a mix of policy measures, including sanctions and incentives (such as disqualification from government tenders, financial penalties, and director liability) to better tackle modern slavery.

There is a clear disconnect between policy and implementation when it comes to addressing modern slavery within the operations and supply chains of Australian businesses. This stems from a lack of transparency in corporate supply chains, which hinders both the detection and resolution of modern slavery issues. To effectively combat this, it is essential to prioritize enhancing supplier relationships and collaborating with key stakeholders such as trade unions. The problem can only be resolved if it is first acknowledged and understood. Gaining better insight into labor conditions in supply chains through engagement with frontline workers is a fundamental and indispensable initial measure in the battle against modern slavery.

All respondents advocated for reform of the MSA to drive company action that benefits victim-survivors of modern slavery, rather than merely promoting superficial compliance with the Act. This report, therefore, serves as a call to action for both policymakers and businesses to work together to enhance the effectiveness of the MSA and genuinely address the issue of modern slavery in corporate supply chains.