Labor exploitation continues to be a major issue in global supply chains, leading to stricter laws and enforcement efforts around the world. In the U.S., the Uyghur Forced Labor Prevention Act (UFLPA) has played a key role in fighting forced labor, especially in China’s Xinjiang region. Since it was enacted in 2022, U.S. Customs and Border Protection (CBP) has examined around 9,000 shipments, detaining nearly 4,000 and stopping goods worth $3.5 billion from entering. These restrictions also apply to imports from countries like Malaysia, Vietnam, and Thailand. Similarly, countries such as Mexico, Canada, Australia, the UK, Germany, and the EU are adopting similar measures, pushing businesses to make their supply chains more transparent and to check for forced labor risks.
The seafood industry highlights the difficulties in tackling labor exploitation. Studies show that the drive for low prices by large Western supermarkets has led to more exploitation of shrimp farmers and workers in places like Vietnam, Indonesia, and India. Farmers have seen their incomes drop significantly, leading to cutbacks and job instability. Many workers earn less than the minimum wage and work in unsafe conditions. Some of the supermarkets involved are Target, Walmart, and Costco in the U.S., as well as Sainsbury’s and Tesco in the UK. Even though some retailers claim to oppose labor violations, the complexity of the industry and various middlemen often makes it hard to trace where the shrimp comes from, complicating ethical sourcing. The report suggests that if wholesale prices were higher, it could help workers without raising costs for consumers. New directives in the EU and government investigations in producing nations aim to tackle these issues. Despite these challenges, many workers feel they have no choice but to stay in these jobs.
The fashion industry also struggles with labor exploitation, particularly child labor. Major sourcing areas like India, China, Turkey, and Vietnam have reported cases of child labor, especially in producing risky materials like cotton, gold, rubber, and leather. This problem often stays hidden in deeper parts of the supply chain, like subcontracted and home-based work, making it hard to detect through regular audits. The International Labour Organization (ILO) estimates that about 160 million children work globally, many in dangerous conditions. Experts recommend that brands work to improve conditions for adult workers, take a risk-based approach, and partner with local governments, NGOs, and communities to address the issue. New laws, like the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), aim to tackle the problem by enforcing strict tracking and correction of human rights abuses. Overall, strong collaboration and law enforcement are necessary to eliminate child labor from the fashion supply chain.
In light of these challenges, various stakeholders are stepping up their efforts to combat labor exploitation. A group of leading manufacturing and retail organizations, including The National Retail Federation and The American Apparel & Footwear Association, has raised serious concerns about reports of forced labor, especially involving Uyghurs and other ethnic minorities in China’s Xinjiang region. This coalition underscores the complexity and scale of the issue in today’s global supply chains and is actively working with nations around the world to promote human rights. Companies in the industry are exploring every possible way to address the situation, seeking expert advice and collaborating with others in the industry to guide their actions.
Experts recommend that supply chain managers partner with suppliers to eliminate slavery by following a clear process. This includes establishing strong company values, choosing suppliers who share those values, and using detailed questionnaires and audits to assess suppliers. It’s crucial to understand the lower levels of the supply chain, as modern slavery can happen anywhere. Managers should conduct objective evaluations of all suppliers and recognize that slavery and human trafficking might exist within their supply chains, both inside and outside the U.S. Executives should create policies that outline specific steps to identify and remove slavery from their supply chains, such as mapping out suppliers and conducting ongoing checks. This thorough approach seeks to promote ethical practices and eliminate forced labor in global supply chains.
To effectively address labor exploitation in global supply chains, it requires a well-rounded approach that combines enforcing existing laws, introducing new regulations, and fostering collaboration among businesses, governments, and non-profits. Improving transparency and diligence in supply chains is vital to reducing the risks associated with forced labor and promoting ethical practices across industries.
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