In Australia, workers on farms, in restaurants and shops are often exploited in conditions akin to modern slavery.
Modern slavery also permeates the global supply chains of Australian businesses supplying goods to the Australian market from overseas. Major retailers, including Rip Curl, Woolworths, Coles and Aldi, have all been implicated in recent scandals involving exploitation in their supply chains. No company wants the curse of slavery in their products, yet too often that is the reality.
The federal government recently announced it is considering introducing legislation to prevent modern slavery in domestic and global supply chains. A federal inquiry into establishing a modern slavery act in Australia is currently under way and accepting submissions.
This announcement forms part of a welcome global trend in legislative measures to eradicate modern slavery from corporate supply chains. Corporate transparency laws have been adopted in a number of jurisdictions, including in the United States, the European Union and Denmark, requiring companies to report publicly on the action they have taken to avoid human rights abuses.
Most notably, in 2015, the UK government enacted landmark legislation to combat modern slavery in businesses and supply chains. This new law includes a mandatory transparency measure requiring companies to publish an annual statement on steps taken to safeguard against slavery. It applies to all large companies, wherever located, supplying goods and services to the UK market.
But does Australia need a new law? The evidence from the UK, is that its Modern Slavery Act is creating momentum and driving change. The law has triggered constructive dialogue and elevated the issue of modern slavery to board level within companies. CEO engagement with modern slavery has reportedly doubled since the act was introduced.
It is also raising awareness more generally and has generated significant public debate about the responsibilities of companies. Modern slavery has become a priority issue for both mainstream consumers and, significantly, for investors.
This act is forcing companies to move ahead, leading to positive changes in corporate culture and human rights practices. With increased transparency, corporate activities are open to greater public scrutiny and companies are more accountable for their human rights performance. Analysis of statements published under the UK act reveals that companies are doing more to identify human rights risks, train staff and strengthen supplier contracts in a bid to stamp out exploitative labour practices.
Given the context of rising public mistrust in corporations and the global market, new Australian legislation would both prevent abuse and give workers and consumers greater assurance that action to eradicate modern slavery is a priority.
The legislation should be designed to encourage businesses to take decisive steps to eradicate slave labour. The UK act provides a useful model for a potential legislative framework. It should not, however, be imported wholesale and requires improving and refining to fit our local context. While building upon the successes of the UK legislation, it is important that Australia also mitigates against its weaknesses.
In doing this, new Australian legislation must mandate, rather than suggest as the UK act does, the areas to be covered in companies’ public slavery statements. This would create consistency and guarantee higher reporting standards. It would also, critically, allow the performance of companies in addressing slavery to be measured and compared, creating a race to the top.
The Australian government should publish a list of all companies that are subject to the provisions of a new act. This would facilitate monitoring and promote legislative compliance. A further vital improvement is the provision by the government of a central public register in which all company statements on anti-slavery efforts are located. This would facilitate analysis of these statements, inform appropriate future action and encourage improved anti-slavery performance by companies. Appropriate penalties for noncompliance, both for corporate entities and their officeholders, would provide critical legislative “bite” and require Australian businesses to step up their efforts in combating modern slavery.
Strong business support is emerging in Australia for legislative measures to tackle modern slavery, with recent endorsements by the Business Council of Australia and Wesfarmers. There is a growing awareness among corporate Australia that action on human rights is critical. The challenges, however, are great and not all businesses are taking the necessary steps.
The Australian government must not wait for another Rana Plaza tragedy before acting. As a wealthy, stable nation, we should show regional leadership and take steps to remedy the wrongs in our systems of supply.
The government should harness support and embrace the opportunities provided by this inquiry. Australia is well placed to set a high, common denominator and bolster the efforts of other nations, to ensure a consistent, global regulatory approach to eradicating slavery from corporate supply chains.
A bold modern slavery act in Australia would press laggard companies to act and provide both certainty and a level playing field for those Australian businesses already tackling the issues. It would help slavery-proof corporate supply chains for Australian consumers.
But most importantly, it would be a vital step in curbing exploitation and improving the lives of countless workers, both at home and overseas, whose labour produces the goods we use every day.