Tag Archives: Supply Chain

Nutella and Child Labour

Nearly three-quarters of the world’s hazelnuts come from Turkey and the biggest buyer is Ferrero, maker of Nutella, the chocolate and hazelnut spread. But the nuts are picked mainly by migrants, including children, who work long hours for very low pay. What is Ferrero doing to ensure its products do not depend on child labour?

In new our book “Addressing Modern Slavery“, we talk about Turkey, hazelnuts and Ferrero: “As Turkey’s Labour Code does not apply to farms with fewer than 50 employees, the state has effectively removed itself from policing this problem. Monitoring of working conditions and ensuring payment of wages is left to companies like Ferrero – a privately held company that is the third largest chocolate maker in the world – which refuses to disclose information about its supply chain” (p177 ).

New book reveals modern slavery is all around us

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It’s estimated that 40.3 million people are enslaved around the world.

For many Australians, the concept of modern-day slavery may seem implausible. But it’s estimated that 40.3 million people are enslaved around the world, more than ever before in human history.

The Global Slavery Index estimates 15,000 people were living in modern slavery in Australia in 2018.

Addressing Modern Slavery examines how consumers, business and government can help eradicate one of the big challenges of our time.

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The long and winding road to respecting workers’ rights in supply chains

Companies often talk about being on a human rights ‘journey’; a long and winding course with many stops along the way. On the other hand, they are never on a ‘journey’ to profit – this tends to happen as quickly as possible. Given that Big Business has long been accused of paying lip service to its social responsibilities, the statement signed last month by virtually all the members of the US Business Roundtable, has caused quite a stir.

Their statement on the purpose of a corporation talks about dealing fairly and ethically with suppliers, supporting the communities in which they work and respecting people and the environment by embracing sustainable practices. It also highlights that the signatory companies, including Amazon, Ford and JP Morgan, ‘are committed to transparency’.

However, global supply chains are anything but transparent; today there are more than 21 million people around the world trapped in forced labour, most of whom produce goods for consumers around the globe.

Continue reading The long and winding road to respecting workers’ rights in supply chains

Message to Coles, Woolworths: Act now to end modern slavery

The Australian horticultural sector is one of the most at-risk industries for modern slavery.

recent survey by the National Union of Workers among 650 workers found severe underpayments and withholding of wages, excessive overtime, retention of identity documents, threats of and actual physical and sexual violence, and coercive and excessive payments for transport and board.

A group of academics, experts in the area of labour and human rights, modern slavery, and supply chains, have initiated an open letter in which they ask Coles and Woolworths to address labour exploitation and the risk of modern slavery.

Australia’s Modern Slavery Act requires businesses to report yearly on the risks of modern slavery in their operations and supply chains, the actions taken in response, and the effectiveness of these actions. The first reporting cycle started on July 1.

Unfortunately, although companies and consumers are increasingly aware that modern slavery exists, it is a phenomenon that is often dismissed or misunderstood.

Continue reading Message to Coles, Woolworths: Act now to end modern slavery

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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Eradicating modern slavery is one of the big challenges of our time

There are currently an estimated 40.3 million people enslaved around the world. If we are to meet the UN Sustainable Development Goal to end modern slavery by 2030, then around 10 000 people need to escape from slavery each day.

Although people are becoming increasingly aware that modern slavery exists, it remains a phenomenon that is too often dismissed, underestimated or misunderstood. There is often confusion about what ‘modern slavery’ actually means as there is no one definition.

Continue reading Eradicating modern slavery is one of the big challenges of our time

Book: Addressing Modern Slavery (2019)

An estimated 40 million people are modern-day slaves, more than ever before in history.

Long after slavery was officially abolished, the practice not only continues but thrives. Whether they are women in electronics or apparel sweatshops, children in brick kilns or on cocoa farms, or men trapped in bonded labour working on construction sites, millions of people globally are forced to perform labour through coercion, intimidation or deceit.

In a world of growing inequality and trade-offs between the haves and the have-nots, consumers, business and government are all part of the problem and the solution. While we have all become accustomed to fast fashion and cheap consumer goods, the affordability of these commodities often comes at the price of human exploitation. Addressing Modern Slavery examines modern slavery and outlines ways it can be stopped.

Continue reading Book: Addressing Modern Slavery (2019)

What Gives Multistakeholder Initiatives Legitimacy?

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Multistakeholder initiatives are often heralded as a solution to many social and environmental issues. Yet, due to their composition, these initiatives are not without tensions and challenges. This paper examines which factors determine the (il)legitimacy of multistakeholder initiatives in the context of efforts to remediate child labor.

Abstract

Child labor in global supply chains is increasingly addressed through multistakeholder initiatives. However, the participation of stakeholders with distinct views and interests can generate tensions. Based on interviews with civil society actors, this research finds that tensions exist between the normative‐ethical and political‐strategic dimensions of multistakeholder initiatives, which are manifest in the existence of international and national norms and their contextual application, in definitions of child labor, risk and responsibility, and in doubts about corporate incentives to join multistakeholder initiatives. In addition, tensions exist concerning the effectiveness of supply chain auditing, enabling broader labor rights as a means to remediate child labor, and whether standards need to be mandatory or self‐regulation suffices. The success of collaboration depends on the effective navigation of these tensions. Failure to do so can undermine the legitimacy of multistakeholder initiatives from the perspective of civil society actors. The research finds that due diligence, in the shape of human rights risk assessments, is not subject to normative‐ethical/political‐strategic tensions, and can play a key role in the success of multistakeholder initiatives and the fight against child labor.

Download the full paper.

Education & Employment References Committee: Exploitation of Cleaners

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.

Executive Summary:

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.

Read the full submission and the transcript of the public hearing.