Philippa Southwell, HTMSE’s founder, appeared on GB News for a live interview during which she discussed modern slavery and human trafficking in the UK’s textiles and garment industry. She focused on the exploitation in fashion as well as the legislation covering business modern slavery compliance.
Under the Modern Slavery Act 2015, Section 54, companies with a total annual turnover of over 36 million, are required to publish a modern slavery statement setting out the steps, if any, they have undertaken in the past year to prevent the risks modern slavery and human trafficking in their business and supply chains. The only formal requirements for the modern slavery compliance statement are that it is signed by a senior member of the organisation, such as a director, and that it is published in a prominent place on the organisation’s website.
During her interview, Philippa discussed the lack of implementation and enforcement of our legislation against non-compliant companies.
‘Forced Labour in Supply Chains’ event, organised by women’s rights organisation Romildamor, will be held on 12th August 2021. Philippa Southwell, HTMSE’s founder, will be attending and speaking on modern slavey compliance and ethical supply chains during the panel discussion along with Katharine Bryan, who is a Modern Slavery Research and Policy Manager at the Walk Free Foundation.
The discussion will address the issues of modern slavery and human trafficking in supply chains, their existence in the fashion industries, as well as business human rights and measures to rectify human rights violations in supply chains.
To sign up and for further information about the event, please see here.
Writing in an article in the Red Box section of The Times, they recommend specific measures and commitments to solve modern day slavery, emphasising that it requires and investment of capital and political will. They appeal to the G7 leaders to condemn forced labour in goods and services in their supply chains and commit to enforcing this.
It is proposed that G7 agree on specific and measurable commitments, such as eradication of forced labour in the G7 supply chains by 2025, and worldwide by 2030. Then, they should agree on steps to harmonise their laws and standards, followed by increase in investment in the countries trying to do the right thing. Lastly, the article calls for a ban to all state-controlled forced labour.
To read the full article by the Independent Anti-Slavery Commissioner and CEO of the Global Fund to End Modern Slavery, please see here.
Operation Fort is the UK’s largest anti-slavery prosecution, with eight members of a Polish criminal gang convicted of slavery, trafficking and money laundering offences on 5th July 2019.
The Independent Anti-Slavery Commissioner report highlights “Operation Fort is important not only because of the number of victims, but also the length of time the criminal gang was able to operate without disruption.” The gang’s activities were traced back to 2012 and continued four years after the Modern Slavery Act was passed in 2015.
The case involved 92 victims aged between 17- 60 who spoke minimal or no English, who were forced to work on farms, in factories, waste recycling plants, warehouses and live in dire conditions in the Birmingham area, although West Midlands PD estimated 400 Polish nationals may have been subject to this exploitation. Operation Fort was a complex case of modern slavery involving many criminal elements, including labour exploitation, human trafficking, fraud, deception, theft and physical abuse.
A key lesson from this case lends to employers and businesses being educated and proactive in spotting the signs of slavery and exploitation, and having effective measures in place to report concerns. There must be particular safeguards in place for temporary workers. Lessons to banks suggest they must proactively look for the signs of slavery within their branches, and also by analysing financial data. Furthermore, recruitment agencies can learn lessons from this case. They have an important role in identifying victims during interview or inductions, carrying out effective checks to detect anomalies, and an ongoing responsibility to check on worker welfare.
“Operation Fort sends a clear warning that no supply chain is safe from worker exploitation. Modern slavery and human trafficking gangs are highly adaptable; organisations must continually evolve to keep pace with entrepreneurial criminality.”
The Independent Anti-Slavery Commissioner provides a maturity framework for business’ compliance to the Modern Slavery Act:
BARELY ACHIEVING COMPLIANCE
Superficial modern slavery statement – policy but no action
Little or no mapping of supply chains
Minimal awareness of modern slavery amongst staff
Sole reliance on audits
No protocol for dealing with labour abuse
MEETING BASIC EXPECTATIONS
Evidence of activity or improvement in modern slavery statement
Identifying areas of high-risk in the business and supply chains
Educating suppliers on policy and setting expectations
Regular staff training and awareness-raising exercises
Basic protocols for dealing with labour exploitation cases
Installing whistleblowing hotlines
EVOLVING GOOD PRACTICE
External challenge or working groups informing strategy
Going beyond auditing – deep dives and unannounced visits
Cascading ethical standards throughout supply chains
In-depth training for staff in key roles, such as procurement
Commitment to worker engagement
Implementing the Employer Pays principle
LEADING ON HUMAN RIGHTS INNOVATION
Board leading on human rights strategy
Using data analytics to identify risk
Local, national, international intelligence gathering
Supporting suppliers to develop ethical competencies
Pioneering new ways of worker engagement, using technology
Factoring in the true cost of labour
Find the full Independent Anti-Slavery Commissioner report here.
The content of modern slavery statements: This section addressed inconsistencies in reporting approaches taken by different companies and the possibility of making certain criteria mandatory. This section also sought to address the fact that global movements in modern slavery legislation may make it desirable to ‘harmonise our approach’. The questions posed focused on reporting practices and the implications of making certain areas mandatory.
Transparency, Compliance, and enforcement: The second section of the consultation sought to propose the introduction of a central government registry, one designed to improve transparency. It also addressed reporting deadlines, proposing a single annual reporting deadline so as to reduce the confusion of multiple separate deadlines throughout the year. It finally sought to gain views into how section 54 of the Modern Slavery Act might be enforced. Questions were posed on each of these areas.
Public sector supply chains: The final area addressed in the consultation examined public sector supply chains. In essence, the consultation proposed that reporting requirements would be extended to public sector organisations with a turnover of more than £36 million per year. Reporting requirements would be for each individual government body to maintain responsibility, whether given individually or as part of a group statement. The questions posed by this section of the consultation focused on the apparent benefits and challenges of imposing modern slavery reporting requirements on large public sector bodies.
In July 2019 the UK Government released it’s response to the Independent Review of the Modern Slavery Act 2015, which was published earlier in the year. The Review appointed experts to advise on the following four sections of the act, making a total of 80 recommendations:
The Independent Anti-Slavery Commissioner (s 40-44)
Transparency in Supply Chains (s 54)
Independent Child Trafficking Advocates (s 48)
Legal Application (specifically s 3 on the meaning of exploitation, s 8-10
on Slavery and Trafficking Reparation Orders and s 45 on the statutory defence).
The response to the Independent Review sets out several actions the UK Government will be taking to address some of the recommendations, including the launching of a public consultation about transparency in supply chains and the announcement of £10 million for the development of a new modern slavery policy and evidence centre. The policy and evidence research centre will involve academics, charities and firms. However, whilst the new centre has been described as having great potential to improve knowledge on human trafficking and modern slavery there are some concerns that the new initiative is being developed while policy is failing in other areas.
The full UK Government response can be found here.
The Independent Review of the Modern Slavery Act 2015 has was published this week on the 22nd May 2019. The review has identified eighty recommendations for improvements to the operation of the act and wider policies to tackle modern slavery and human trafficking in the United Kingdom. The review makes significant recommendations for how legislation should be amended to increase compliance by businesses and improve supply chain transparency, including:
Recommendation 25: Failure to fulfil modern slavery statement reporting requirements or to act when instances of slavery are found should be an offence under the Company Directors Disqualification Act 1986.
Recommendation 22: The legislation should be amended to require companies to consider the entirety of their supply chains [in respect of modern slavery]. If a company has not done so, it should be required to explain why it has not and what steps it is going to take in the future.
Recommendation 18: In section 54(5) ‘may’ should be changed to ‘must’ or ‘shall’, with the effect that the six areas set out as areas that an organisation’s statement may cover will become mandatory. If a company determines that one of the headings is not applicable to their business, it should be required to explain why.
Recommendation 32: Section 54 should be extended to the public sector. Government departments should publish a [modern slavery] statement at the end of the financial year, approved by the Department’s board and signed by the Permanent Secretary as Accounting Officer. Local government, agencies and other public authorities should publish a statement if their annual budget exceeds £36 million.
The recommendations would significantly increase the responsibility on businesses to address anti-slavery in their supply chains, and afford the government greater power to punish companies that do not comply.
New Modern Slavery Act 2018 in Australia introduces strict reporting requirements for businesses among other key objectives.
There has been significant interest recently over the introduction of the Modern Slavery Act 2018 (MSA) in Australia, and its likely coming into force in early 2019. The act will carry with it significant thresholds for businesses to meet in terms of reporting requirements. But what is the new act?
Claiming to be ‘ethically sourced’, tobacco fields are one of the biggest cash crops in the developing world yet have one of the most corrupt supply chains. Tobacco farms are worked on by children labouring excessive hours for minimal or no pay, while tobacco companies reap the multi-billion dollar benefits of the industry.
On our analysis, this is problematic not only because of the short-term consequences on the health and social rights of the workers, but also as it fuels the longer-term demand for the toxic, pollutant and addictive recourse. This demand is rising in the vulnerable areas of Asia, Africa while decreasing in the West due to education, taxation and policy restrictions. Abolition of child agricultural labour is a high policy agenda for the new Zimbabwean government, and a fundamental step in promotion of a stable democracy throughout other developing states that are also the production sources of tobacco.