Is slavery a thing of the past? Unfortunately not. According to the Global Slavery Index, it is estimated that on any given day, there are 15,000 people living in conditions of modern slavery in Australia. Cases of forced labour exploitation are especially high in industries considered high risk, such as agriculture, construction, domestic labour, meat processing, cleaning, hospitality, and food services.
As such, Australia’s implementation of the Modern Slavery Act 2018, which came into effect on 1 January 2019 was a welcome, if overdue, step in the effort to combat modern slavery. While the act technically went into effect last year, 2020 is the first year that organisations that fall within the scope of the law will actually be required to report.
A new report by the Centre for Social Justice found that there are currently at least 100,000 victims of modern slavery in the UK. This is a huge increase from the 10,000-13,000 suspected victims according to a 2017 government study. Recently, Leicester-based fashion brands Boohoo and Quiz have been embroiled in modern slavery allegations.
Boohoo is currently investigating reports that workers at one of its Leicester suppliers were being paid just £3.50 per hour, almost £5 lower than the £8.20 national minimum wage. They have also allegedly been forced to work during the COVID-19 lockdown without protective equipment and social distancing. These reports immediately started to damage Boohoo’s reputation, with big-name retailers such as ASOS, Next and Zalando all dropping Boohoo’s clothing from their websites and their shares plummeting as a result. A few days later, Quiz announced that they believe one of their suppliers subcontracted clothing production to another supplier. They believe this subcontractor was paying their staff well below the minimum wage.
Frank Field MP, Baroness Elizabeth Butler-Sloss and Maria Miller MP have recently completed a review of the operation and effectiveness of the Modern Slavery Act 2015 (the Act) and to recommend improvements commissioned by the Home Office. With the full report yet to be published, we take a look at the effectiveness of The Act.
If a recent independent review of the Modern Slavery Act is anything to go by, the answer would be not very close at all. Today, it is believed that there are still over 21 million slaves in the world, with around 10,000 in the UK alone (although this number is believed to be much higher. This includes sex trafficking victims, child workers and sweatshop employees. In many countries where slavery is prevalent, it is difficult for law enforcement to stop such crime. It is therefore important that companies step up and are more proactive in their efforts to stop this horrible and inhumane crime.
Is the Modern Slavery Act helping to solve the problem?
With the UK government increasing its efforts through increased spend and more resources going towards arresting and prosecuting offenders annually, it’s clear that The Act has played an important role in reducing the number of modern slaves in the UK. The government spent around £39 million in 2017/18 and £61 million in 2018/19 on modern slavery and in 2017, the total number of arrests for modern slavery offences was 131, almost twice the number from the previous period. That number is expected to rise in the 2018/19 period, with members of a gang thought to have around 400 victims recently sentenced to jail.
The Global Slavery Index estimates that on any given day, there are 15,000 people living in conditions of modern slavery in Australia – a shocking number in a modern, developed country like Australia.
Following consultations with the business community, the Australian Modern Slavery Act 2018 went into effect on 1 January 2019. This comes four years after the British implemented their own Modern Slavery Act. The Act complements Australia’s existing criminal justice response to modern slavery, which includes specialist police investigative teams, a dedicated victim support program and a National Action Plan on Human Trafficking and Slavery.
Last week, the Crown Prosecution Service published its first report into Modern day slavery following the introduction of the Modern Slavery Act in 2015. The report showed that there was a 27% increase in the number of suspects charged with slavery offences in 2017/18 compared with the previous year. Referrals of modern slavery allegations have also risen to their highest level and the number of prosecutions is on the increase too.
These are all positive signs that the Modern Slavery Act which was introduced in 2015 is beginning to have an effect on ending the scourge of people trafficking, domestic servitude and prostitution. However, a BBC programme, The Prosecutors: Modern Day Slavery, highlighted the ongoing difficulty of actually bringing the perpetrators of these crimes to justice. One of the reasons is the method of spotting and reporting incidents of slavery.
2017 marks the first year that all companies (with revenues of at least £36m) must provide a Modern Slavery Act disclosure. Many companies are now preparing their second statement and are seeking guidance on how to amend their statement and how to address ongoing training requirements.
Modern Slavery Statement template – are you aware of what needs to be included in a modern slavery statement? Learn about the requirements and download a free template
Modern Slavery Statement Registry – with over 3,300 statements, this registry allows you to explore what other companies in your sector are doing to eradicate slavery and how they are drafting their statements
Quick start guide to compliance with the Modern Slavery Act
Tomorrow, 18th October, marks UK Anti-Slavery Day. Created by an Act of Parliament to raise awareness of the millions of men, women and children held in slavery and deprived of their basic human freedom, it can also shine a light into the slivers of progress being made to tackle modern-day slavery.
The Modern Slavery Act 2015 has now been in effect for well over a year and businesses across the UK have had to adjust to ensure they comply with the Act. While this means large corporations such as ASOS have had to re-think the way they monitor and audit their suppliers. Some companies have yet to produce a slavery and human trafficking statement, a requirement under the Act for businesses with an annual turnover of over £36 million. Knowing what to look for in supply chains will help your procurement team identify potential red flags within your supply chain. Continue reading →
Action against modern slavery is ramping up. In just the month of May 2017, the Modern Slavery Helpline dealt with nearly 200 potential victims in the UK. In the first five months of this year, 1,179 potential victims of modern slavery were identified.
Yet this number is a drop in the ocean compared to the tens of thousands of men, women and children being held as slaves right now in the UK. The Modern Slavery Act 2015 not only brought in tougher laws and sanctions against slavery, but encourages businesses to ensure they are not participating in labour abuse in their supply chains.
The Modern Slavery Act – Section 54
Section 54 of the Modern Slavery Act mandates companies with an annual turnover greater than £36m publish an annual slavery and human trafficking statement. Companies with a financial year-end date of 31st December were required to produce and publish their statement by 30th June. Many still haven’t. Continue reading →
Since the first modern slavery statements were published a year ago, we have gained perspective on what companies can do to fight slavery in the supply chain and the benefits of a robust anti-slavery programme. On Tuesday 26th September at 12:00pm, Richard Beale will be joining VinciWorks to discuss the practical aspects of modern slavery compliance and answer any questions you may have.
Richard Beale is the Global Director of Supply Chain at Marshalls plc. and has over 20 years of experience managing global supply chain and procurement in the FMCG, retail, financial services, private equity and manufacturing sectors. At Marshalls, Richard is piloting a cutting-edge supplier education programme focusing on the elimination of modern slavery. Continue reading →