This study examines how the risk of labour standards noncompliance can be rendered calculable and commensurable through a market device. We present a case study of the Cleaning Accountability Framework (CAF), an industry certification scheme, which seeks to address labour exploitation in the Australian contract cleaning industry. We pay particular attention to the central device of the certification scheme – the pricing schedule. We examine how the pricing schedule shaped the calculative space informing contracting parties during the procurement process. In doing so, the pricing schedule increased transparency around the potential risk of labour standards noncompliance. The nature of this transparency and the perceived objectivity of the pricing schedule acted to reshape the market for contract cleaning, resulting in a redistribution of accountability for labour exploitation. We also examine how the pricing schedule formed part of a wider framework of accountability, and how these mechanisms enabled strategic co-enforcement of labour standards compliance by supply chain stakeholders. Overall, our study indicates the potential for accounting practices to play a more active role in shaping how markets address modern slavery risks.
Tag Archives: Supply Chain
The Law Down Under Podcast: Modern Slavery
Modern Slavery Risks in the Cleaning and Security Industry
This briefing session brings together academic experts in the fields of modern slavery, labour law compliance, supply chain due diligence and temporary migrant workers, to share insights and advice on how universities can demonstrate leadership in promoting good labour practices. The aim of this briefing is to assist relevant stakeholders in the higher education sector to understand their role in promoting good labour practices, and provide guidance on practically how to do this. This briefing is aimed at professionals working in university procurement and contract management, university modern slavery working groups, university risk and compliance, cleaning and security contractors that currently hold contracts at university campuses.
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Why a degree in modern slavery is a valuable addition to your CV
Modern slavery may seem a distant issue in Australia, but a new course will teach graduates why an understanding of it is increasingly important in every business
It might be easy to imagine, especially in Australia, that slavery is a thing of the past. But an estimated 15,000 people were living in conditions of modern slavery here in 2016, through forced marriage and labour, sexual exploitation, debt bondage and human trafficking – exploitation that disproportionately affects women, children, asylum seekers and migrants. Globally, in that same year, 40.3 million victims were being abused.
Martijn Boersma is an associate professor of human trafficking and modern slavery at the University of Notre Dame Australia, where a new course aims to provide the skills and knowledge that will enable people to work proactively to put an end to the exploitation of vulnerable people.
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Consultation on Modern Slavery and Worker Exploitation (New Zealand)
Modern slavery and worker exploitation are severe types of exploitation that can be found both internationally and in New Zealand. To address these behaviours, significant collaboration between government agencies as well as civil society, corporations, trade unions, academics, and international partners is needed.
The New Zealand Government sought feedback on a new law aimed at addressing modern slavery and worker exploitation in New Zealand and around the world. The law would introduce new obligations for organisations with operations and supply chains in New Zealand. Below is a submission made by academics and representatives from civil society that work on modern slavery and labour exploitation.
Research Article: Making sense of Downstream Labour risk in Global Value Chains
While the efforts by actors on the buyer-side of value chains – such as brands and retailers – to address upstream labour abuses are well documented, there is a lack of research into how actors on the production-side of value chains – such as raw material producers – can identify and address downstream labour risks. This research presents the findings of an action research project that focused on the Australian cotton industry. By applying a sense-making lens, we propose four properties that can be used to identify labour risk in global value chains, providing insights into the capacity of producers to address downstream labour abuses. We suggest that there is a possibility for a ‘book-end’ approach that combines upstream and downstream actions by buyers and producers in global value chains.
The article can be found on the Journal of Industrial Relations website.
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?Continue reading Why do Companies Find it so Hard to Choose Between Profit and Principle?
‘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.
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Coronavirus Hits Precarious Workers in Supply Chains Hardest
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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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.