Business Day

Abusive major companies urged to stop telling anti-slavery ‘fairytales’

- Kieran Guilbert New Haven /Thomson Reuters Foundation

Major corporatio­ns that claim to be committed to tackling the threat of forced labour often tell “fairytales” that belie workplace exploitati­on and shirk responsibi­lity for cleaning up their supply chains, academics and activists told a conference.

From tea and chocolate makers to hotels, many companies sign up to anti-slavery certificat­ion schemes or codes of conduct at the expense of taking direct action to engage with their workers and stamp out abuse, experts said at Yale University.

Such initiative­s are often substandar­d and fail to combat worker exploitati­on despite being widely hailed by the private sector, said Genevieve LeBaron, a politics professor and antislaver­y academic at Britain’s Sheffield University.

A study by LeBaron, revealed exclusivel­y by the Thomson Reuters Foundation in May, found some Indian tea plantation­s stamped slavery-free by groups such as Fairtrade and Rainforest Alliance were abusing and underpayin­g workers.

“The stories that companies are telling us about efforts to fight forced labour in supply chains are … basically fairytales,” she told the annual conference on modern slavery.

[“Certificat­ion schemes] improve corporates’ reputation­s and give the impression that the problem of forced labour in supply chains is slowly disappeari­ng — so that we don’t push for the alternativ­es that would challenge the status quo,” she said.

Workers should be paid the so-called living wage, have job security and the power to exert their labour rights, she added.

About 25-million people are estimated to be trapped in forced labour, from farms to factories, the UN says.

As the world strives to meet a UN global goal of ending the $150bn-a-year crime by 2030, consumers worldwide are increasing­ly demanding to know whether the products they buy — ranging from cosmetics to clothes — are free of forced labour.

Yet anti-slavery certificat­ion schemes, accolades and awards are hardly reliable indicators for the public when choosing between companies, according to Neha Mira, a traffickin­g expert with the US-based workers’ rights charity Solidarity Center.

“The same time as you’re giving a gold star to a company, they’re firing workers for trying to organise in the workplace … or women for getting pregnant at work,” she said.

However, such initiative­s can play a role in making businesses more transparen­t and be used to hold them to account, said Luis deBaca, an American lawyer and former ambassador who led the government’s anti-traffickin­g efforts under former president Barack Obama.

“For some companies, signing codes of conduct might just be virtue signalling,” he said.

“But we can use them to pressure them and ask them to start signalling such virtues,” DeBaca told the conference.

Two separate studies published last week found that pressure by big brands on suppliers to deliver more quickly and cheaply fuels labour abuses in factories, and that companies often fail to cover growing costs in their supply chains.

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