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
The Standing Committee on Social Issues is inquiring into and reporting on the Modern Slavery Act 2018 (NSW) (the NSW Act), the consultation draft of the Modern Slavery Bill 2019 (the amendment Bill), and the consultation draft of the Modern Slavery Regulation 2019 (NSW) (the Regulation), with particular reference to:
- (a) the operability of the proposed anti-slavery scheme
- (b) the effect of the anti-slavery scheme on business, including the supply chain reporting obligations under section 24 of the NSW Act
- (c) the intended application of the anti-slavery scheme with respect to charities and not-forprofit organisations, State Owned Corporations and local councils
- (d) the appropriateness and enforceability of Modern Slavery Risk Orders under section 29 of the NSW Act
- (e) the unintended consequences of drafting issues with the NSW Act, including with respect to the Human Tissue Act 1983 (NSW) and the sale and supply of human tissue
- (f) the risk of a possible constitutional challenge to current provisions in the NSW Act due to inconsistencies with the Criminal Code Act 1995 (Cth)
- (g) whether the passage of the Modern Slavery Act 2018 (Cth) renders parts or all of the NSW Act unnecessary, or requiring of amendment to address inconsistencies or gaps
- (h) the preferred course of action to address the matters identified
- (i) any other related matter.
Below is the submission made by Justine Nolan and Martijn Boersma.Submission to NSW MSA 2019 NOLAN BOERSMA Oct 4 2019
When the Bill that became the Modern Slavery Act 2018 (Cth) was introduced into the federal parliament, it was accompanied by a grim message: two centuries after the abolition of the slave trade in the United Kingdom, it is estimated that there are twenty-five million victims of modern slavery worldwide. It also came with a bracing if Panglossian promise: that the Modern Slavery Act would ‘transform’ the way large companies in Australia do business, and drive a ‘race to the top’. Published a year after the introduction of this legislation, Addressing Modern Slavery is a timely reflection on the pervasiveness of modern slavery in global supply chains – and on the role of the state, business, and other actors in combating this serious and complex problem.
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.
In June 2018, the Senate referred an inquiry into the exploitation of general and specialist cleaners working in retail chains for contracting or subcontracting cleaning companies to the Education and Employment References Committee. A submission to this inquiry was made by the Centre for Social and Business Innovation at the University of Technology, and a colleague and myself participated in a public hearing in September 2018.
A growing body of evidence indicates the need for a consistent industry-wide approach for employment standards for cleaners; and the consideration of alternative business and employment models for the cleaning industry. Non-compliance with existing regulations right across the supply chain, have been found to disrupt tenant operations, and have resulted in negative outcomes for cleaners. These have included underpayments, the loss of superannuation payments, sham contracting arrangements, uncertainty and financial hardship. Addressing these issues will require a range of solutions, both regulatory and non-regulatory. While improved enforcement will address some issues, alternative business models and support for voluntary frameworks to establish industry-wide frameworks for employment standards pertaining to cleaners also have a role to play.
Australian businesses have recently been implicated in serious labour abuses, both within and beyond Australia’s borders. A new paper by Catalyst Australia and The Australia Institute examines legislative developments aimed at tackling slavery and trafficking in other jurisdictions, and argues that Australia should learn from these measures in the face of urgent human rights issues with immediate impacts for Australian companies, government, investors and consumers.
Justice Minister Michael Keenan has been accused of “death by committee” after he failed to respond to a report of a working group he set up recommending laws to stop exploitation in company supply chains.
The group has now released its own report fearing its recommendations will be ignored.
Exploitation scandals have hit major Australian brands over the past year. In February, Rip Curl was forced to apologise after its clothing labelled “made in China” was found to be made in North Korean factories. The company blamed a subcontractor.
Sunday marks three years since the Rana Plaza garment factory collapse in Bangladesh. This disaster led to the tragic loss of 1130 lives, left 2500 injured, and sparked a global debate about workers’ rights and ethical labour standards in low-wage countries. In Australia, civil society organisations such as Baptist World Aid and Oxfam lead the charge to expose labour abuses and improve working conditions in global supply chains. But thus far the government has been largely absent form this debate and has been slow to act.
This paper seeks to assess how the international banking community is building sustainability into corporate strategies; how effectively these strategies are being implemented; how sustainability is being embedded into key business processes and decisions; and how sustainability principles are reflected in reporting. It presents an assessment of the sustainability performance of banks using a range of frequently used indicators, while also scrutinizing the indicators by examining the extent to which they effectively measure the performance and commitments of banks. While many banks achieve high scores on these indicators, there is evidence that there are significant flaws which are not adequately addressed.
The GFC has shown that unsustainable banking activities can bring the economic system to the brink of collapse. A new report by Catalyst Australia examines to what degree banks can also cause or alternatively mitigate social and environmental harm, and what are the resulting responsibilities towards the community and the environment?