Tag Archives: supply chains

New Research Article: Multi-Stakeholder Frameworks for Rectification of Non-Compliance in Cleaning Supply Chains

May 27, 2021UncategorizedCleaning Accountability Framework, migrant workers, multistakeholder collaboration, multistakeholder governance, supply chains, worker exploitationmartijn

There is now an expanding body of literature on the significant problem of business non-compliance with minimum labour standards including ‘wage theft’. Extended liability regulation beyond the direct employer is seen as one solution to this non-compliance in fragmented but hierarchically organised industries—such as the cleaning industry. This article uses empirical evidence to assess the effectiveness of one such regulatory scheme, the Cleaning Accountability Framework (CAF), in addressing non-compliance with minimum labour standards (including provisions of the Fair Work Act 2009 (Cth) and the Cleaning Services Award 2020). We find that CAF has been successful in identifying and rectifying certain non-compliance, improving working conditions for some cleaners involved in the scheme. We synthesise the key success factors of CAF in view of envisioning the adoption of such co-regulation frameworks in other industries. We also propose legal reforms that will support change across the cleaning industry.

The article was published in the Federal Law Review.

Why do Companies Find it so Hard to Choose Between Profit and Principle?

April 5, 2021Uncategorized2022 World Cup, companies, cotton, exploitation, fashion, governance, government, governments, human rights, human rights abuses, labour, Martijn Boersma, migrant workers, modern slavery, muslims, Qatar, Revenue, Supply Chain, supply chains, systematic exploitation, uyghur, xinjiangmartijn

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 →

New Paper: Blockchain and Modern Slavery

July 28, 2020Uncategorizedblockchain, ethical sourcing, modern slavery, supply chains, traceability, transparencymartijn

While blockchain was designed as a ledger for cryptocurrency transactions, it can record transactions of anything of value. Blockchain is increasingly used to prove the integrity of commodities, tracing their supply chain journey from the source to the end user. Yet, transferring this technology from a cryptocurrency context to a supply chain setting is not without difficulties. This article explores the implications for multinational and transnational companies in using blockchain as a means to address modern slavery. The paper identifies five challenges: verification, inclusion, trust, privacy, and normativity.

The paper was published in AIB Insights. A PDF version of the paper is also available.

Boersma, M., & Nolan, J. 2020. Can Blockchain Help Resolve Modern Slavery in Supply Chains? AIB Insights. https://doi.org/10.46697/001c.13542.

Coronavirus Hits Precarious Workers in Supply Chains Hardest

March 18, 2020Uncategorizedaddressing modern slavery, Australia, brands, companies, exploitation, forced labour, government, governments, Martijn Boersma, modern slavery act, Reporting, Revenue, risk, Supply Chain, supply chains, trafficking, work, working conditionsmartijn

*Computer chip and circuit board factory, Jiangxi, China. Shutterstock*

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.

Continue reading Coronavirus Hits Precarious Workers in Supply Chains Hardest →

Cotton Value Chain – Labour Risk Heat Maps

March 14, 2020UncategorizedAustralia, cotton, fashion, government, human rights, ILO, labour, labour rights, risk, supply chains, Value Chain, working conditionsmartijn

The Queensland University of Technology and the University of Technology Sydney have been funded by the Cotton Research and Development Corporation to research “Strategies for improving labour conditions within the Australian cotton value chain” (2019-2022).

Non-Government Organisations are active in pressuring fashion brands to be accountable for their social and environmental claims. Labour is currently in the spotlight. Over 20 million employees in garment manufacturing in Asia Pacific are paid below the minimum wage. ILO ratification in Australia’s export countries is low and non-compliance high (up to 90%). This project will provide information to enable the cotton industry to understand labour issues along its value chain and recommend strategies for the industry to explore.

Phase 1 produced a heat map, based on secondary data, which provides an overview of labour issues affecting the textile and apparel industry in primary export destinations in the Australian cotton value chain. Click on the image below to see the full interactive heat maps which were created using Tableau.

Continue reading Cotton Value Chain – Labour Risk Heat Maps →

Update: Open Letter to Coles and Woolworths – Shareholder Resolution

October 10, 2019UncategorizedAustralia, certification, coles, exploitation, fresh food, justine nolan, labour, Martijn Boersma, modern slavery, open letter, social, Supply Chain, supply chains, trade unions, Unions, wage theft, woolworths, work, workplacemartijn

The open letter to Coles and Woolworths was covered by the New Daily and the supermarkets have written a response to our letter. The Australasian Centre for Corporate Responsibility (ACCR), who have been engaging both supermarkets since 2017, have prepared a response to the supermarkets. You can find the response here:

What’s next? A Shareholder Resolution!

Justine Nolan, Laurie Berg and Martijn Boersma have supported a shareholder resolution by ACCR that will be heard at the Coles AGM on the 13th November 2019. You can help by calling on UniSuper to support the resolution. All you need to do is send them a message here. You can use the sample text below, copy and paste, or write your own.

Continue reading Update: Open Letter to Coles and Woolworths – Shareholder Resolution →

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

September 9, 2019UncategorizedAustralia, certification, civil society, coles, companies, disclosures, exploitation, Fair Work Ombudsman, Food, human rights, labour, migrant workers, modern slavery, open letter, Reporting, Supply Chain, supply chains, trade unions, Unions, wage theft, woolworths, work, working conditionsmartijn

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

A 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?

September 2, 2019UncategorizedAustralia, civil society, companies, forced labour, government, investors, modern slavery, regulation, Reporting, Supply Chain, supply chains, transparency, working conditionsmartijn

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.

Continue reading Modern slavery laws – what do they mean for your business? →

Can Blockchain help to break the chains of modern slavery?

May 2, 2019Uncategorizedblockchain, cobalt, Corporate Governance, corporate social responsibility, labour standards, modern slavery, supply chains, technology, transparencymartijn

File 20190430 194637 1lt4sbs.jpg?ixlib=rb 1.1 — Global supply chains have struggled to deal with poor working conditions including child labour, forced labour and debt slavery. Julien Harneis/Flickr, CC BY-SA

There’s a good chance the device on which you are reading this contains cobalt. It’s an essential metal for batteries in phones and laptops. There’s also a chance the cobalt was mined by slaves. Continue reading Can Blockchain help to break the chains of modern slavery? →

What Gives Multistakeholder Initiatives Legitimacy?

September 13, 2018Uncategorizedcivil society, due diligence, environment, human rights, legitimacy, multistakeholder collaboration, multistakeholder governance, social, stakeholders, Supply Chain, supply chainsmartijn

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.