Forced labour is an unfortunate reality that continues to plague supply chains across the world, despite increasing awareness and efforts to eradicate it. According to the International Labour Organization (ILO), there are currently an estimated 27.6 million people worldwide who are trapped in forced labour, with many of them working in global supply chains. This article explores why labour abuses remains an issue in supply chains and what can be done to address it.
Complex supply chains
One of the main reasons why forced labour continues to be an issue in supply chains is the complex and fragmented nature of these chains. Most products are made up of numerous components that are sourced from multiple suppliers, often in different countries. This complexity makes it difficult to monitor and regulate working conditions at every stage of the supply chain. As a result, it is easy for unscrupulous actors to exploit workers, particularly in countries where labour laws are weak or poorly enforced.
Demand for cheap products
Another factor contributing to labour abuse in supply chains is the demand for cheap products. Many consumers are attracted to low-priced goods, and companies are under pressure to produce these products as cheaply as possible. This can lead to cost-cutting measures that result in low wages and poor working conditions for workers. In some cases, companies may turn a blind eye to labour abuses in their supply chains in order to maintain their profit margins.
The role of transparency
A lack of transparency is another significant barrier to addressing labour exploitation in supply chains. Companies may not know the full extent of their supply chains or the working conditions of the workers involved. Even if they do have some information, it can be difficult to determine whether the information is accurate or reliable. This makes it challenging to hold companies accountable for labour abuses that occur further down the supply chain.
Regulatory affairs
Finally, weak or ineffective regulations can also contribute to labour exploitation in supply chains. Some countries have lax labour laws or may not enforce their laws effectively, allowing companies to exploit workers without fear of consequences. Even in countries with strong labour laws, enforcement can be difficult, particularly when it comes to supply chains that span multiple countries.
Countries with the highest incidents
The following are some of the countries with the highest incidents of forced labour:
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China: China has a large number of people in forced labour, particularly in industries such as manufacturing, mining, and construction. The Chinese government has been criticized for using forced labour in its Xinjiang region, where Uyghur Muslims are forced to work in cotton fields and factories.
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India: India has the highest number of people in modern slavery in the world, with forced labour being a significant issue. Forced labour in India can be found in industries such as agriculture, domestic work, and brick kilns.
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Pakistan: Pakistan has a significant number of people in forced labour, particularly in industries such as agriculture, brick kilns, and carpet weaving. Bonded labour is also prevalent in Pakistan, where workers are trapped in a cycle of debt bondage.
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Bangladesh: Forced labour is prevalent in the garment industry in Bangladesh, where workers, particularly women, are often paid low wages and forced to work long hours in unsafe conditions.
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Uzbekistan: Forced labour is widespread in the cotton industry in Uzbekistan, where the government has been criticized for using forced labour to harvest cotton.
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North Korea: Forced labour is a major issue in North Korea, particularly in prison camps where prisoners are forced to work in dangerous conditions.
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Nigeria: Forced labour is prevalent in Nigeria, particularly in industries such as agriculture, domestic work, and mining.
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Russia: Forced labour is prevalent in Russia, particularly in industries such as construction and agriculture. Migrant workers are particularly vulnerable to forced labour in Russia.
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Democratic Republic of Congo: Forced labour is prevalent in the mining industry in the Democratic Republic of Congo, where workers, including children, are forced to work in dangerous conditions.
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Cambodia: Forced labour is prevalent in the garment industry in Cambodia, where workers are often paid low wages and forced to work long hours in unsafe conditions.
It is important to note that labour exploitation is not limited to these countries, and it is a global issue that affects many countries around the world. Addressing labour exploitation requires a concerted effort from governments, businesses, and civil society organizations to ensure that workers are not exploited and their human rights are protected.
Companies accused of using forced labour
Several companies have been accused of using forced labour in their supply chains in recent years. Here are some of the notable examples:
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Nike: In 2020, an investigation found that Nike was using forced labour in its supply chain in China’s Xinjiang region. The company was accused of sourcing cotton from factories that used Uyghur Muslim forced labour. See our Nike ESG report.
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Apple: In 2019, Apple was accused of using forced labour in its supply chain, specifically in the manufacturing of iPhones in China. The company was accused of using student interns who were forced to work long hours and threatened with not being able to graduate if they didn’t comply. See our Apple ESG report.
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Amazon: In 2020, an investigation by the Wall Street Journal found that Amazon was selling goods produced in factories that used forced labour in China. The company was accused of sourcing products from factories that used Uyghur Muslim forced labour. See our Amazon ESG report.
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H&M: In 2021, H&M faced backlash in China after it voiced concerns about the use of forced labour in Xinjiang. The company’s products were removed from major Chinese e-commerce platforms and its stores were temporarily closed in the country.
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Coca-Cola: In 2021, Coca-Cola was accused of benefiting from forced labour in the sugar industry in Guatemala. The company was accused of purchasing sugar from suppliers that used forced labour. See our Coca-Cola ESG report.
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Nestle: In 2019, Nestle was accused of using forced labour in its palm oil supply chain in Indonesia. The company was accused of sourcing palm oil from suppliers that used forced labour and exploitation of workers. See our Nestle ESG report.
These are just a few examples of companies that have been accused of using forced labour in their supply chains. It is important for companies to take responsibility for their supply chains and ensure that their products are not associated with the exploitation of workers. Consumers can also play a role in holding companies accountable by choosing to support businesses that prioritize ethical and sustainable practices.
What can be done
There are a number of steps that companies and governments can take to tackle this issue. One of the most important is to improve supply chain due diligence through monitoring tools like ours, and increase transparency in supply chains. Companies should be required to disclose information about their supply chains and the working conditions of the workers involved. Governments can also play a role by requiring companies to conduct due diligence on their supply chains and by implementing regulations that hold companies accountable for labour abuses.
Another key step is to promote the use of ethical labour practices in supply chains. This can include paying workers fair wages, providing safe working conditions, and ensuring that workers are not subjected to forced labour or other forms of exploitation. Companies can work with suppliers to improve their labour practices, and governments can provide incentives for companies that demonstrate a commitment to ethical sourcing.
In conclusion, labour exploitation remains an issue in supply chains due to a complex range of factors, including the fragmented nature of supply chains, demand for cheap products, lack of transparency, and weak regulations. However, by increasing transparency, promoting ethical labour practices, and holding companies accountable for labour abuses, progress can be made in eradicating forced labour from supply chains. It is important that companies and governments work together to address this issue, as it not only violates human rights but also undermines the sustainability and integrity of global supply chains.