June 2021
Modern Slavery in Today’s Supply Chains:
What You Need to Know
This topic is a difficult one, but it is something that needs to be addressed. Much as we all wish it weren’t the case, slavery in today’s supply chains is a very real issue. It is also one that we, as professionals and industry leaders, must acknowledge. There are no easy answers when it comes to eliminating forced labor in the global supply chain, but learning about and understanding a problem is always the first step.
In 2016, the International Labour Organization reports, nearly 25 million people were trapped in forced labor situations. Of those, 16 million people were being exploited in the private sector. This is unacceptable, and the scale of those statistics is likely shocking to readers unaware of this reality. But for those of us in these industries, ignorance is no excuse. It’s up to us to be vigilant and understand our supply chains to root out any such problems.
Existing Requirements and Actions
The “good” news here is that the problem of forced labor is more front and center today than it has been previously. There’s been a lot of change in the way that consumers think about the products that they buy. These changes include environmental considerations, for example, as well as workers’ rights concerns. There is obviously a lot left to accomplish, but we’d be remiss to not mention the existing requirements and actions in place to protect workers in our supply chains. These include:
The U.S. Tariff Act of 1930, prohibiting the importation of goods into the United States if they were produced or manufactured using any convict/forced/indentured labor.
The U.S. Trade Facilitation and Enforcement Act of 2015, eliminating what’s called the “consumptive demand” exception - basically meaning that goods likely to be in violation of the Customs forced labor statute may not be imported.
The Countering America’s Adversaries Through Sanctions Act, targeting goods believed to have been manufactured through the forced labor of North Korean citizens or nationals.
The California Transparency in Supply Chains Act, requiring that certain companies report on actions being taken to combat slavery/human trafficking in their supply chains.
These are just a few of the existing requirements and actions in place, with more legislation being proposed here in the United States and abroad.
Who Is Affected by Forced Labor in Supply Chains?
As is so often the case, those caught up in this particular situation tend to be the most vulnerable populations in global societies. Women, children, migrants, and those with little formal education are most likely to wind up in a forced labor situation.
In our market driven global economy, there is a constant rush to be the lowest bidder. The way that many companies ensure that they are the lowest bidder is by exploiting groups like these. That is why we’ve seen an explosion of what is called the “working poor” in manufacturing hubs like Bangladesh, India, and Kenya.
Workers are desperate to earn wages so that they can provide for their families. Manufacturers exploit that desperation, paying nothing even resembling a living wage, and workers are forced to take the jobs because other opportunities are nonexistent to them.
How to Fight Against Forced Labor in Your Supply Chains
Forced labor is endemic in the manufacturing industries, particularly in those countries where educational and professional opportunity is lacking. Just because the problem is endemic does not mean that complacency should be, as well. The worst thing that any of us in these industries can do is to shrug the problem off as another symptom of “the way things work.”
Forced labor in our supply chains is an evil - not a “necessary evil.” And it is our responsibility - each and every one of us in the importing/exporting/global logistics industries - to fight this evil. The forced labor itself may not be happening here, but the sale of these products certainly is. As recently as 2020, ABC News (Australia) reported on the link between brands like Apple, Samsung, Sony, and Nike and the forced labor of Muslim Uighurs in China - itself exposed by drone footage released in 2019.
Those companies relying on overseas supply chains must be wary of forced labor slipping into those supply chains. The price argument isn’t an excuse anymore, with 53% of surveyed consumers stating they’d be willing to pay more if it meant that their products weren’t the result of forced labor. If you are importing products or are at all reliant on global supply chains, make sure that you know every link of that supply chain well. This includes subcontractors. And be sure to work with a logistics firm that knows your supply chain in and out, too.
Forced Labor in Supply Chains Won’t Be Eradicated Overnight
But it won’t be eradicated at all if we don’t do our part. Increased supply chain visibility is one of our best weapons when it comes to tearing down this systemic issue. That visibility is important for a number of reasons, of course - but none are quite so critical as helping to reduce the risk of forced labor from some of society’s most vulnerable groups.
If you have any questions about the subject of forced labor and modern slavery in today’s global supply chains, or if you want to learn more about what we’re doing to fight back, give us a call today. There are no easy solutions, but together we can meet the challenge of ending forced labor head on. There is no more worthy cause in our industry today.