Tag Archives: modern slavery act

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.

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.

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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.

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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.

From Local to Global: Best Practice in Fighting Modern Slavery

If people are serious about ending modern-day slavery, consumers need to be prepared to pay more and companies must be prepared for a drop in profits, while governments must pass unpopular legislation, a professor of law at the Catholic University of America has warned.

Professor Mary Graw Leary is a founding director of the Bakhita Initiative for the study and disruption of modern-day slavery.

In her address to The Tablet webinar, “From local to global: best practice in fighting modern slavery and human trafficking”, sponsored by the University of Notre Dame Australia, she acknowledged that “great strides” have been made in fighting modern slavery and human trafficking in a fairly short period of time.

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Broken Promises: business failure on modern slavery

A new report, Broken Promises: Two years of corporate reporting under Australia’s Modern Slavery Act, examines the second year of corporate statements submitted to the Government’s Modern Slavery Register by 92 companies sourcing from four sectors with known risks of modern slavery: garments from China, rubber gloves from Malaysia, seafood from Thailand and fresh produce from Australia.

It finds that:

  • 66% of companies reviewed (down from 77% in the first year) are still failing to comply with the basic reporting requirements mandated by the legislation, with some companies not submitting reports at all;
  • Over half (56%) of the commitments made by companies in the first year of reporting to improve their modern slavery response remained unfulfilled based on their second year statements;
  • 43% of companies reviewed (down from 52% in the first year) are still failing to identify obvious modern slavery risks in their supply chains;
  • There is a mere 6% increase in the number of companies appearing to be taking some form of effective action to address modern slavery risks, with two in three companies still failing to act.

Seafood, rubber gloves, oranges: tainted by modern slavery?

If your clothes are made in China, rubber gloves from Malaysia and seafood sourced from Thailand, researchers are warning you may be at risk of supporting modern slavery practices.

Those were identified as the sectors with the highest risk of modern slavery in a new report, produced by a coalition of human rights organisations and academics.

And despite previous warnings of the risks to Australian companies sourcing these products, little has changed to improve the risks.

Continue reading Seafood, rubber gloves, oranges: tainted by modern slavery?