Modern Slavery On Our High Streets

Educating the public on signs of modern slavery within their workplace or community is key to identification and cooperation to combat labour abuses

Along with the progress seen in the UK’s legislative framework around human trafficking and modern slavery, there is growing public awareness of the issue. In order for the justice system to work effectively to intercept traffickers, there is demand for the public to be educated on signs of labour abuse, and to work with authorities to report it.

A ground breaking case in January this year led to two traffickers jailed under the Modern Slavery Act for involvement in the trafficking of teenage girls from Vietnam to work unpaid in nail bars in Bath, UK. The importance of this case highlights how victims of slavery can fit into society so blatantly that many people who witness it, do not question the criminality behind it.

UK authorities such as the GLAA have composed toolsets for public education around the identification of modern slavery. Spot the Signs guidance provides clear explanations of human trafficking, forced labour, debt bondage and outlines specific types of exploitation to be aware of, including labour exploitation, sexual exploitation, domestic servitude, organ harvesting and criminal exploitation. The industries regulated by GLAA for forced labour are agriculture, food processing and packaging, construction, warehousing and logistics, service industry and catering, sweatshop manufacturing. As HTMSE have previously noted, there is an ever growing number of target industries for traffickers, including recently recycling and waste processing, football and sports, the beauty and massage industry, as well as a notorious market for forced criminality in cannabis growing operations. 

Although each case of labour exploitation will have a variety of variables and indicators, as seen in the Bath case, young, foreign girls who seem fearful or ‘controlled’, and a have language barrier whereby their traffickers can take advantage of them, are potential victims. The GLAA outlines the most common indicators of labour exploitation. In addition to the victim’s characteristics and behaviour, signs to look out for in a victim’s situation are

Unfortunately, once a potential victim is identified, it is not a simple process to restore their freedom. Due to the nature of their mental ‘conditioning’ by the traffickers, Stockholm Syndrome poses a major issue for authorities. If victims do not know they are being exploited or understand their situation, in many cases they are fearful of authorities and will resist cooperation. Spot the Signs highlights the irrelevance of the victim’s “consent” if they are “controlled by force, threats, coercion, abduction, fraud and deception” as it constitutes control over another person. For example, in the Bath case, one of the victims ran away from their foster home to their traffickers within days of release. This is where a victim centred approach, particularly in language services, is critical to consider right from the beginning in the identification of potential victims, and on going in order to ensure successful rehabilitation.

Although the public may not wish to become involved in a case, it is their civic duty if they witness or have suspicion of labour exploitation, to report it. In order to encourage the reporting of modern slavery suspicions, authorities should safeguard interests by maintaining anonymity and providing comprehensive, simple reporting methods. Educating the public on the signs of modern slavery within their workplace or community is key to identification and active public cooperation to combat labour abuses.

Growing Awareness of Labour Exploitation at Waste Recycling Facilities 

8% of MRW survey participants stated they witnessed possible cases of labour exploitation in the last year
8% of MRW survey participants stated they witnessed possible cases of labour exploitation in the last year

New statistics report that over a third of rescued modern slavery victims in the UK have, at some point over the course of their exploitation, been used for labour at waste or recycling processing plants. This work involves long strenuous hours in harsh, dirty environments, ‘picking’ and sorting materials that come into the depot. These cases highlight the recycling industry as one of the increasing target points for human traffickers, where the victims maybe moved between known industries such as car washes and factory work.

Surveys from the Materials Recycling World industry insight have claimed that 8% of those who took part stated they witnessed possible cases of labour exploitation in the last year. Reports suggest eastern European gang members are accompanying the victims posing as ‘friends’ to help interpret where there were language barriers. A case recorded by Hope for Justice recounted that the ‘friend’ would accompany the victim to the bank to set up a bank account, and manipulate the situation into gaining access to the account and take the wages from the worker. As suggested by Neil Wain, International Programme Director at Hope for Justice, such “findings suggest there may still be a limited awareness of the factors that cause and contribute to modern slavery in this sector of the economy, and that more training and understanding would be beneficial.”

The NCA has recorded 1,631 referrals of modern slavery in the first 3 months of 2018. There is growing awareness around the waste industry as a key sector for the skills and labour sets of human trafficking victims. These findings point to the need for tightening of regulation around waste and recycling supply chains, particularly those attached to local government. As a government utility, it is critical that waste collection and treatment systems do not facilitate modern slavery. The private sector waste companies need assessment around the UK’s Modern Slavery legalisation.

For further reporting on by Materials Recycling World, read here. 

Combatting the Vulnerability of Refugees Against Labour Exploitation

Image Credit: Deutsche Welle - Syrian Refugee Working at BMW
Image Credit: Deutsche Welle – Syrian Refugee Working at BMW

In many cases, migrants and refugees make vulnerable targets for exploitation within their host countries as they are often in positions of desperation and vulnerability. In many cases their skill sets or education are not suited to those needed in their place of settlement, forcing them into poor and inappropriate work conditions, hard labour or making them vulnerable to recruitment by traffickers to exploitation.

The UNHCR, OECD and other international agencies are working on an ‘Action Plan’ to overcome the issue of refugee employment. This plan aims to integrate refugees into the labour market by overcoming the issues and creating a strategy to identify the skills that can actively contribute to the economy of the host nation.

Through research and interviews, having secure and safe employment is the top contributor to integration in a new society, which protects them from the potential for labour exploitation. Although each host destination has subjective conditions and labour requirements, the action plan is a holistic and broad framework composed of 10 steps:

  • Action 1 – Navigate the administrative framework
  • Action 2 – Provide employers with sufficient legal certainty
  • Action 3 – Identify and verify refugees’ skills
  • Action 4 – Developing skills for job-readiness
  • Action 5 – Match refugee talent with employers’ needs
  • Action 6 – Provide equal opportunities in recruitment and combat stereotypes
  • Action 7 – Prepare the working environment
  • Action 8 – Enable long-term employability
  • Action 9 – Make the business case for hiring refugees
  • Action 10 – Coordinate actions between all stakeholders

Whether in refuge from conflict, environmental or economic hardship, 65 million people globally have been forcibly displaced from their homes, of which refugees make up 25.5 million. Due to the nature of globalisation, these rates are increasing, along with the frequency and types of labour exploitation of refugees and vulnerable populations.

For the full Action Plan, read here.  

Child Rights and Corporate Social Responsibility (CSR)

Child Rights and Corporate Social Responsibility
Child Rights and Corporate Social Responsibility

Corporate Social Responsibility (CSR) has been understood and conceptually used since the 1990s, yet only recently gained weight in legal terms. It was designed to hold businesses accountable for the environmental wellbeing and human rights within their production and supply chains that they financially benefit from, and in turn to uphold the rights of the most vulnerable sector of society – children.

The importance of child rights

The interaction between businesses and children is inevitable, as people under 18 years old make up a third of the worlds population. The importance of this interaction, whether as consumers, relations to employees or young workers themselves is critical because childhood is the most fundamental stage of development, where young people are more sensitive both to psychological and physical harm. Furthermore, they are most vulnerable to violence and abuse, deeming defenceless when forced into certain situations either out of desperation or before their own autonomy has developed to protest. If they are exposed to hazardous operations whether directly or indirectly, they are at high risk of mental and physical damage. In extreme yet unfortunately widespread cases of child labour exploitation within supply chains, for domestic work or other forms of illicit labour, the consequences to a child’s wellbeing can be irreversible.

Furthermore, the wellbeing of children is important to the long-term economic growth within communities. 215 million children are engaged in child labour worldwide, and 101 million children are not attending primary school. By being exploited from a young age, the stunt in education that children undergo will ultimately feedback negatively on the future overall productivity rates of businesses within certain economies.

The development of CSR

In the development CSR, rights observers have understood that corporate interests generally outweigh the voluntary demand for an ethical and socially responsible supply chain. There are various examples of CSR that have developed, which compels corporations to comply with legal standards. For example the UK Modern Slavery Act 2015 that that dictates national legal standards, which requires corporations to publish the steps they are taking to ensure their supply chains and free of modern slavery, child labour, human trafficking. This regulation applies both domestically and for international sourcing, in which certain export standards of mandatory social compliance are placed onto developing countries with cheap labour. The California Transparency in Supply Chain Act (CTSCA) 2010 operates similar obligations but working at state level. The Indian Companies Act (2013) compels Indian corporations to spend 2% of their pre-tax profit on CSR.

How Child Rights fit into CSR

Although such legislation is aimed more broadly at achieving supply chain transparency, upholding child rights is a key element of this. Specifically, there is a set of 10 Child Rights and Business Principles as outlined by Save the Children, the UN Global Compact and UNICEF, which give a comprehensive yet non-exhaustive list of CSR requirements in relation to child rights. Corporations must:

  1. Meet their responsibility to respect children’s rights and commit to supporting the human rights of children
  2. Contribute to the elimination of child labour, including in all business activities and business relationships
  3. Provide decent work for young workers, parents and caregivers
  4. Ensure the protection and safety of children in all business activities and facilities
  5. Ensure that products and services are safe, and seek to support children’s rights through them
  6. Use marketing and advertising that respect and support children’s rights
  7. Respect and support children’s rights in relation to the environment and to land acquisition and use
  8. Respect and support children’s rights in security arrangements
  9. Help protect children affected by emergencies
  10. Reinforce community and government efforts to protect and fulfil children’s rights

As this literature points out, the rights of children are no ‘new legal obligation’, instead are innate human rights, which in turn drives CSR. This can be broken down into the Corporate Responsibility to Respect, which applies to the business’s own activities and to its business relationships, linked to its operations, products or services” as well as the Corporate Commitment to Support, which demands voluntary actions that seek to advance human rights, including children’s rights, through core business activities, strategic social investments and philanthropy, advocacy and public policy engagement, and working in partnership and other collective action.”

The focus of CSR towards children aims to eliminate child labour from supply chains, but also must take the nuanced approach which includes protecting the rights of children in their core business strategy, covering all operations, employee rights, marketing, and delivery of products and services.

The aim is for states to be responsible by implementing such CSR legislation to level out the injustices and inequalities of the world’s wealthiest corporations taking advantage of the worlds most poor and vulnerable. Although this works ideologically, the problem comes with implementation. Limitations with CSR studies show that even passive state regulation does not necessarily lead to thorough commitment to supply chains free of human rights abuses and environmental degradation by corporations. Trends show most corporations only apply resource to CSR when receiving pressure from external organisations. Hence, it takes active pressure by rights groups, NGOs and governments to achieve this, indicating the critical role of UNICEF and organisations to lobby against corporate interests. For CSR to be achieved, strict legal requirements and binding commitments must be met with appropriate sanctions as means of compulsion to achieve child rights.

Analysis of Global Revenue Produced by Human Trafficking

The International Labour Organisation estimates human trafficking derives USD 150.2 billion per year, making it one of the most profitable criminal ventures worldwide
The International Labour Organisation estimates human trafficking derives USD 150.2 billion per year, making it one of the most profitable criminal ventures worldwide

In parallel to the transatlantic slave trade as one of the most profitable business ventures in global history, modern slavery in the form of human trafficking follows suit. The International Labour Organisation estimates human trafficking derives USD 150.2 billion per year, making it still one of the most profitable criminal ventures worldwide. Furthermore, in an environment of globalisation it is rapidly increasing in numbers and in typologies. The rise in displacement and movement of people, whether in refuge from conflict zones, economic or environmental migration means there is increased vulnerability to trafficking, and in turn, more revenue produced by trafficking rings.

The Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG) compiled a study Financial Flows From Human Trafficking to address the use of human trafficking as a source of money laundering and terrorist funding. Modern terror networks have indeed taken advantage of this profitable business venture, which creates a complex nexus between trafficking, money laundering and terror financing.

The report divides human trafficking into three categories in which revenue is produced through very unique money laundering systems. Firstly, trafficking for forced labour produces USD 51.2 billion per year, of which USD 43.40 billion is generated by hard labour exploitation, and USD 7.9 billion produced through domestic servitude. Second, trafficking for forced sexual exploitation produces USD 99 billion. Third, organ removal produces between USD 600 million – 1.2 billion, however the report refrains from providing a defined figure because the crime is rarely done in isolation, and therefore overlaps with other crimes which clouds the figures.

The aim of the FATF report is to provide “tangible indicators and best practices for national authorities to improve their effectiveness in combatting money laundering and terrorist financing from human trafficking”. In order to understand these systems appropriately, they provide a set of ‘money laundering indicators’ to be adopted by specialists and authorities working in the human trafficking sector,  to create a systematic form of recording and analysing financial flows from trafficking. The report finds major issues that international actors have in disrupting the nexus between human trafficking, money laundering and terror financing, and outlines resolutions including the need to:

On analysis, the conclusions of this report put significant weight on the need for cooperation between international, state and regional authorities to work together in combatting financial flows from human trafficking. However, there are many challenges and complexities including the corruption of state actors that contribute to the global trafficking systems and obscure the financial figures recorded, including which revenue streams are being used for terror funding. The international institutions such as FATF need to work closely with governments to systematically identify and analyse this. By nature of the black market, accurate figures are impossible to find which inhibits the capacity of national authorities, financial institutions, NGOs and actors to prioritise responses to human trafficking in its various forms. Yet as we further understand the finances of the crime, we are able to respond with effective measures of prevention and resolution.

For the full FAFT report, Financial Flows From Human Trafficking read here.

The Significant Role of Healthcare Providers in Human Trafficking Identification

A 2014 study reported 88/100 of sex trafficking victims came into contact with a healthcare department during their exploitation
A 2014 study reported 88/100 of sex trafficking victims came into contact with a healthcare department during their exploitation

There is growing awareness of the key role that the healthcare sector plays in identifying and supporting victims of human trafficking. Due to the vast forms of exploitation, many dangerous scenarios lead to numerous physical injuries from STD’s of sex workers, to injury operating  heavy machinery on mine sites, and exposure to hazardous chemicals,  malnourishment and osteoporosis. Furthermore, trafficking victims often suffer from significant mental health and physical trauma as a result of their exploitation. Currently, in hospitals around the world, systems of identification exist for child abuse and domestic violence, yet limited procedures exist to identify and support trafficking and modern slavery survivors. Both the UK and the US are implementing policy to work with healthcare professionals to provide the necessary care and support for trafficking victims.

According to reports by trafficking survivors, many entered the healthcare system at some point during their process of exploitation. A survey in 2014 suggested 88/100 of the sex trafficking victims came into contact with an emergency healthcare department. These scenarios are critical opportunities that are missed if healthcare staff are not trained to identify victims of trafficking. However, this is not a simple or obvious process, as many of victims face difficult situations. They may not be open with the professionals if they have self doubt or are not yet aware they are being exploited, they are afraid of the repercussions of giving information regarding their situation, or they are accompanied by a supervisor to prevent details being communicated to authorities.

To deal with such situations, training is given to doctors, nurses but also a wider circle of healthcare providers that have come into contact with victims, including social workers, security guards and receptionists. These employees have the capacity to intercept victims, spot the important indicators, such as if the healthcare needed has been put off for several weeks, to spot inconsistencies in information or repeat injuries. They will then ask a number of leading questions to encourage victims to receive help. These questions may entail whether the patient “has ever had sex for money” or “whether they give someone else part of what they earn”.

Dignity Health has human trafficking program in over 40 hospitals in the USA, in which the core goals “are to ensure that trafficked persons are identified in the health care setting and that they are appropriately assisted with victim-centered, trauma-informed care and services”. They are “implemented first in Dignity Health emergency departments, followed by labour & delivery and postpartum departments”. In particular, there is a new diagnostic tool that can be used to identify and record umbers of trafficking against other abuse victims.

The UK are also developing systems to address the role of healthcare in trafficking survivors. The NHS Human Trafficking e-Learning Tool assists in identification and care of trafficking victims. It is aimed to train healthcare staff by outlining various scenarios of trafficking and how to appropriately cover the legal rights to medical care of trafficking victims. The aim is to inform and prepare front line staff to provide thorough support when confronted with cases of human trafficking.

In terms of victim support for survivors of human trafficking in the UK, the healthcare system is only available to victims within the 45 day reflection and recovery period of the National Referral Mechanism, after which governmental and healthcare assistance ends and survivors are vulnerable to re-trafficking and exploitation. In a report by Dr. Carole Murphy, she explains that the “system and its processes and procedures are not fit for purpose and have the potential to cause harm to survivors through re-traumatisation, falling through gaps in service provision and potential re-exploitation.”

The International Organisation for Migration and UN Global Initiative to Fight Human Trafficking also provide guidance on recommendations for victim care within all jurisdictions. They provide the report Caring for Trafficked Persons: A Guide for Health Providers in which they suggest careful treatment from healthcare providers can be fundamental in the recovery of abused and traumatised victims. It aims to provide guidance in recognising the common health problems and diagnosis associated with trafficking and the most safe and appropriate way to undergo treatments.

It is clear that the healthcare system plays a fundamental role in both human trafficking identification, as well as on going survivor support. The issue is unfortunately, if victims are not willing to give up information then there’s little support healthcare providers can give, hence, the way in which victims are spoken to and dealt with must be in careful and diligent manor after going through specialist training.

Further information and official reports on medical resources for professionals working with trafficking victims, see our eLearning resource.

World Day against Trafficking in Persons 2018: Join the HTMSE Directory in the Fight Against Human Trafficking

World Day against Trafficking in Persons 2018

The United Nations has allocated the World Day against Trafficking in Persons, occurring for the 5th year on July 30th, in order to raise awareness for the heinous crime that plagues every country globally, whether a place of origin, transit or final destination.

Behind drug trafficking, human trafficking is one of the most profitable criminal networks where millions of vulnerable people are forced, manipulated or coerced into moving to a foreign destination, whereby they will endure exploitation at some point along their path. This may take the form of hard labour, sexual exploitation, forced begging, forced criminality, organ removal or ever developing forms of exploitation, for example skin removal, online pornography, and exploitation in the sports industry.

The International Labour Organisation reports that 21 million people are subject to forced labour globally, of which a large proportion have been trafficked. Women and girls make up around 70%, and children or minors make up 30% of all trafficking victims. Hence, the focus for World Day against Trafficking in Persons 2018 is on ‘responding to the trafficking of children and young people’ as announced by the UNODC. The aim is on prevention, education, support and justice for the child victims of trafficking.

In order for this movement to be most effective, professionals within the fields of human trafficking and modern slavery need to work together, pool resources, expertise and specialism. The HTMSE directory is a global platform that lists professionals in the fields of law, trafficking and country experts, medical experts, counsellors and therapists, specialist organisations and researchers who are working towards the same goal of eradicating exploitation, trafficking and slavery. On this World Day against Trafficking in Persons 2018, we welcome you to join our initiative or use the resource in your fight against human trafficking alongside our professional network, to achieve support and justice for victims of trafficking.

For further information on World Day against Trafficking in Persons 2018, see here.

Accountability Needed for Internet Service Providers: Sex Trafficking and the Case of Backpage.com

Backpage’s involvement is reported in 73% of all child trafficking cases received from the US National Centre for Missing and Exploited ChildrenIn an exponentially expanding era of cyber activity, new channels for criminal activity are being facilitated. A particular area of concern is within the use of the Internet for human trafficking and in particular sexual exploitation, in which the US case of Backpage.com has received much international attention.

Earlier this year the notorious website was shutdown by the US Department of Justice. Backpage.com is the world’s second largest classified ad marketplace where 90% of the websites’ revenue is generated from ‘ads’ relating to sexual promotion, including child sexual exploitation and forced prostitution. Based in its Dallas Texas HQ with global operations out of 97 countries with 943 locations, the last reported value of Backpage.com was over half a billion US dollars. It has been the subject of on going concern for US authorities, as Backpage’s involvement is reported in 73% of all child trafficking cases received from the US National Centre for Missing and Exploited Children (NCMEC).

The United States Senate’s report Backpage.com’s Knowing Facilitation of Online Sex Trafficking following the 2 year investigation indicates three major findings:

  1. Backpage has concealed evidence of criminality by systematically editing its ‘adult’ ads. Over the last 10 years and as recently as 2014, Backpage executives have had several methods of formalised ‘deletion of incriminating words and phrases, primarily through a feature called the “Strip Term From Ad Filter.”’ Words removed by both manual and automatic systems included “lolita,” “teenage,” “rape,” “young,” “amber alert,” “little girl,” “teen,” “fresh,” “innocent,” and “school girl.” Through rewording advertisements, the client could submit the ad with the same criminal intention and usage, yet presented with ‘legal’ content.
  2. Backpage is fully aware of the fact that it facilitates illegal prostitution and child sex trafficking. It has refused to respond to complaints and manipulated information sent to NCMEC.
  3. Despite the sale of the website to an anonymous foreign company in 2014, the real owners are James Larkin, Michael Lacey, and Carl Ferrer.

Bradley Myles CEO of Polaris Project made a statement on this case, in which he commented that “shutting down the largest online U.S. marketplace for sex trafficking will dramatically reduce the profitability of forcing people into the commercial sex trade, at least in the short term. Traffickers will have to rethink their business models and sex buyers will face greater risk.” He highlighted the fact that the multimillion-dollar industry leader cannot claim ‘ignorance’ as to the human trafficking they are facilitating and must be held personally liable.

This response relates to previous attempts to shutdown Backpage.com. For example in 2016, the CEO, Carl Ferrer and fellow executives were arrested on ‘pimping related charges’. However, this attempt at prosecution was unsuccessful, protected under the US Constitution and legislation that deemed Backpage.com having no liability for the speech of third parties who posted the ads on their site. The US Communications Decency Act (CDA) 1996 was implemented as an attempt to regulate internet pornography, but under Section 230 has been interpreted to shield operators of Internet services, and thus they are not legally or criminally liable for the content of third parties who use their services. This defence has been used several times to leave Backpage.com operating, despite the obvious facilitation of sex trafficking. To overcome this on going loophole, the Trump administration has amended this legislation through their Stop Enabling Sex Traffickers Act of 2017 to put the onus of responsibility onto the website host for information relating to sex trafficking.

The concern over this legislation has primarily been voiced by free speech and internet advocates including the Silicon Valley Internet Association who are lobbying against it, as it has wider implications for their own accountability for illicit content created by users. The CDA legislation is seen as a primal statute for Internet development, which has put pressure on large ‘legitimate’ tech companies including as Google, Amazon, Facebook, and Twitter. Google has put forward a number of solutions they are contributing, including blocking Backpage.com advertising from their remit and developing technology to help scan for rouge sites. Ultimately, however, these technologies have not been successful in stopping the operation of sex promotion that is currently ‘protected’ by the US constitution, and therefore legal measures need to be adjusted.

In analysis, the core of the issue is transferring the onus of responsibility onto the owner/s of websites that may be used for illegal activity, as they are ultimately benefitting from the exploitation facilitated by their website (whether within or out of their knowledge).  Although the issue is complex and there are no tangible supply chains in an online system, the legislation ruling cyber security must mimic the template of recent Modern Slavery Legislation (e.g. in the UK), where the benefiters (i.e. corporations) must be responsible for human rights abuses in their supply chain in the same way that website facilitators must be held accountable for abuses that are associated with their website’s network.

For the full report United States Senate’s report Backpage.com’s Knowing Facilitation of Online Sex Trafficking, read here.  

Long-Term Support Lacking for Human Trafficking Victims in the UK

Long-Term Support Lacking for Modern Slavery and Human Trafficking Victims in the UK

The report A Game of Chance? Long-term support for survivors of Modern Slavery by Dr. Carole Murphy at The Centre for the Study of Modern Slavery offers a comprehensive analysis into the UK’s current approach to support for victims of human trafficking and modern slavery. It highlights the significant gaps in survivor care, most notably in long-term support. There is little done beyond the 45 day reflection and recovery period of the National Referral Mechanism, after which financial assistance ends and survivors are vulnerable to re-trafficking and exploitation. Hence, the report suggests the “system and its processes and procedures are not fit for purpose and have the potential to cause harm to survivors through re-traumatisation, falling through gaps in service provision and potential re-exploitation.

The key recommendations are:

  • Resource services to work with complexity of survivors’ needs relevant statutory and voluntary sector
  • A positive Conclusive Grounds (CG) decision must carry status and resources (see Lord Mc Coll’s (Victim Support) Bill)
  • Trafficking Survivor Care Standards (HTF) should be implemented as standard model of best practice and should consider introduction of independent advocates
  • Statutory guidelines should be introduced and monitored and include compulsory and embedded training for all First Responders and other statutory services
  • Personnel conducting CG interviews should be properly trained
  • Undertake consistent monitoring of the NRM drawing on evidence based research about what works
  • Document evidence of what works by conducting a cost benefit analysis to establish the social return on investment of longer-term support provision
  • Consider evidence and best practice from other jurisdictions to inform changes

 

For the full report on A Game of Chance? Long-term support for survivors of Modern Slavery by Dr. Carole Murphy The Centre for the Study of Modern Slavery, read here. 

Labour Abuses in the Jewellery Industry

Over 1 million children between the ages of 5 -17 are working in artisanal mining operations on less than $2 per day or receiving food as payment
Over 1 million children between the ages of 5 -17 are working in artisanal mining operations on less than $2 per day or receiving food as payment

In the wake of the development of modern slavery compliance legislation, there is a movement towards transferring the onus of responsibility onto large corporations to ensure their own supply chain is clean. Some of the worlds largest companies are in the jewellery business, with a notorious reputation for human rights abuses, yet some of the world’s highest revenue. According to Human Rights Watch (HRW), specifically gold and diamonds generate over $300 Billion revenue annually, from 90 million carats of diamonds and 1,600 tones of gold. 

There has been an upraise in media on ethical supply chains in agricultural industries such as fishing, cocoa & coffee production, yet there are significant issues to be addressed in supply chain compliance and ethical sourcing compliance for the jewellery business – here addressing labour exploitation, child labour and human trafficking.

Examples of Human Rights abuses

 Specifically in relation to child labour, estimates suggest over 1 million children work in artisanal or small-scale mining operations, despite being illegal at both the domestic level and by international law. Statistics from the African Centre For Economic Transformation suggest these children between 5 -17 are working on less than $2 per day, or receiving food as payment. Child labour has been reported in Ghana, Mali, Nigeria, the Philippines, Tanzania, and Zimbabwe, Burkina Faso, Uganda, the Democratic Republic of Congo, and Indonesia. However, regulation is lacking and children are continuously working in extremely dangerous and inhumane conditions, including exposure to toxic and explosive chemicals potentially causing brain damage, respiratory diseases from the dust, heavy strenuous lifting and exposure to dangerous machinery.

Concerning forced labour, it has been reported in Peru, Democratic Republic of Congo, Eritrea and in Zimbabwe where the military physically forced workers into diamond mining between 2008-2014. In the harsh conditions of the mining industry, workers are prevented from leaving either by blackmail or violence. In other cases, workers are trafficked to mines, by deception or force, in order to be exploited for mining work.

Wider rights abuses are continually taking place in the extraction industry, including land rights violations whereby indigenous populations have been displaced, armed conflict violations including money laundering to fund civil wars and violence by arming militias. Sexual violence, including abuse and torture by occupying mine workers, security guards and soldiers controlling mines has been reported, such as in Porgera mine, Papua New Guinea. Furthermore, environmental rights have been violated by disrupting 1000s of people and defecating habitats with toxic mine runoff, as in Nigeria 400 were children killed by artisanal mine toxic lead poisoning.

What are the current standards?  

Alongside prominent Modern Slavery legislation, as seen developed in the UK, USA and developing in Australia, that holds businesses accountable for their own supply chain regulation, there are several international standards for human rights compliance yet none that are prominent enough to control this issue.

The United Nations Guiding Principles on Business and Human Rights declares that companies are by law required to undertake “human rights due diligence” within their entire supply chain. Furthermore, they must have systems in place to identify and remediate human rights abuses immediately. However, when it comes to implementation this only document offers only ‘guidance’.

The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas provides an industry-targeted outline for mine operators. The major issue with this, however, is that it is voluntary and therefore not officially regulated.

Furthermore the Kimberley Process Certification Scheme (KPCS) is a significant international standard relating specifically to diamond extraction, to eradicate “blood diamonds” or “conflict diamonds”. However, again this proves too narrow, as it does not cover human rights abuses outside of active conflict zones.

The Responsible Jewellery Council (RJC) provides a certification system for all stakeholders in the jewellery supply chain. However, as this is an industry led program, it fails to have the legal and regulatory weight to ensure due diligence is done. Instead, according to findings by HRW it has flawed governance systems in which most companies assign their whole credibility for human rights compliance.

Are jewellery companies adhering to Modern Slavery compliance regulation?

HRW released a report in February this year focusing on the policies and practices of 13 major jewellery brands that generate over $30 Billion per year. Many reporters and researchers fail to receive any comment from major bands as to their slavery and trafficking risks associated with gold mining.  HRW concluded that clear majority of jewellery companies are not meeting human rights standards within their supply chains. There are little hands on investigations, and too much reliance is put on verbal ‘assurances’ from their suppliers that the gems, minerals, products are ethically and sustainably sourced.

Two mining companies have monopoly over the global diamond industry, and account for over half of all diamond sales. De Beers, working from South Africa, Botswana, Canada, Namibia, and Russian company ALROSA. However, according to HRW, both of these fail to be transparent with the mines in which their diamonds are sourced.

Issue in difficulty for companies to trace their supply chains

With parallels to technology companies who source small parts from many locations, the jewellery industry has very complex supply chains, as oppose to fishing or agriculture where the total product (e.g. a fish) has one source of origin. For example diamond jewellery is handled by many actors, making it difficult for companies to trace their full supply chain. From the mines, diamonds are firstly sent to be cut and polished, whereby 70% of the global diamond supply is done in India and 20% in China, reflecting their low labour costs. The next stage in a generic supply chain is to jewellery manufacturers where the products are pooled and constructed. Finally they reach the end retailers, where the US has the largest market of 40% of global sales.

A crux of the issue is in the sale after the raw extraction process because as soon as the minerals go through the first process of trade or export, batches from many sites are often mixed up. This makes the sustainably and ethically sourced gems or metals untraceable from those that are product of exploitative labour. This is ultimately caused by negligence of the mine operators in dealing with and processing their products in a way in which they can be accounted for.

Some companies have CSR programs used to give back to the community and in exchange for their land use, build major infrastructure like schools, roads, and hospitals. (Harvard) However, there is speculation around using these methods as a way to be presented as human rights compliant, as these initiatives are undercut by their lack of transparency in their daily business operations and supply chain mechanisms. Analysis of the global extraction business points to the conclusions that this industry is fuelled by profit and capital gain, whereby there is a large disconnect between those that are receiving the benefits of the jewellery business and those that are suffering. This issue is on-going because perpetrators will not have interests in alleviating the abuses from their supply chains, unless legally forced to, or compelled by their customers through suspended of business.

Resolutions

Although the majority of companies are lacking in their supply chain compliance, HRW points out that some positive initiatives are blooming. For example a number of jewellers are exclusively working with artisanal mines that comply with the Fairtrade or Fairmined gold standard coming from Latin America, driven by consumers demanding ethical sourcing. In order to be most effective, successful domestic legislation such as the UK Modern Slavery Act should be used as a blueprint to regulate national supply chains. For countries that are less likely to adopt such policies, the international literature should become involuntary, binding and regulated, to cut out any internal corruption facilitating the mining industry. Furthermore, a percentage of the capital that is gained from mines should be redirected to the local communities through education and infrastructure to deal with the long term problem of child labour in the extraction sector.

Statistics drawn from Human Rights Watch Report February 2018: The Hidden Cost of Jewelry: Human Rights in Supply Chains and the Responsibility of Jewelry Companies