"There is a pervasive interconnectivity between the services and products we buy and slavery or slave-based industries. Unwittingly, consumers support the exploitation of workers and perpetuate the no-win circumstances of slaves."
This is Part 1 in a two part conversation on how consumers are not well informed with regard to modern slavery being evident in products or services they are purchasing. In this blog Manfred Ewikowski (one of our Directors), takes a look at the Anti-Slavery Commissioner and the usefulness of the Modern Slavery Act.
Consumers are often faced with difficult choices. The increased pressure on cost of living often means that there is limited choice in terms of what we can afford to purchase. One of the last things that consumers have time to consider is whether or not the products and services they are purchasing will contribute to slavery here in Australia or around the world.
Our clothing or seafood or even the restaurants where we eat may be connected to the many forms of slavery that exist in our society and in countries throughout the world. Generally, consumers do not have the time or the desire (through no fault of their own) to ensure that the products and services they purchase are not connected with slavery in its modern form. At best, consumers, when they become aware that a product or service is connected with slavery, purchase an alternative product or service that does not have a recognisable connection with slavery. This approach can more easily be referred to as an avoidance strategy. However, in many ways it is very difficult to avoid slavery in all of its contexts both with products that have a source outside of Australia as well as products and services that are obtained within Australia and other Western countries.
There is a pervasive interconnectivity between the services and products we buy and slavery or slave-based industries. Unwittingly, consumers support the exploitation of workers and perpetuate the no-win circumstances of slaves. Consumers (even the most well intentioned) generally do not have the knowledge or ability to obtain products or services which are not connected with slavery. So how do consumers solve this dilemma?
Avoidance
The answer in some ways comes from first understanding that an avoidance strategy is not overall an effective approach. One of the issues with slavery that allows it to perpetuate throughout a range of services and products is that it is hidden. The average person walking into a restaurant or a beauty salon does not have the means to determine whether the workers employed there are being exploited in many of the forms of modern slavery that exist here in Australia. Even businesses that we have been using for many years, may be deliberately exploiting their workers.
Exploitation can increase when workers are vulnerable due to their residency status, or lack thereof, within the country they work. I want to be clear that I am not generalising that anytime you see a worker in a service industry who may not have English as a first language that the person is being exploited. There are many phenomenal businesses here in Australia and in other Western countries relying predominantly on labour from people who were not born in these countries. Many of these businesses are doing the right thing by their employees and their customers. However, the insidious nature of slavery makes it difficult and yet important for us to not generalise this issue and presume that certain industries or certain ways of doing a business require the perpetuation of slavery.
Problematically, when consumers avoid a product or service because of a known connection to slavery they may inadvertently purchase a product or service which is also connected with slavery (but which has managed to hide this connection). In some cases, the businesses providing these products and services may not even be aware that they are connected with slavery. For example, vanilla is a common ingredient used by cafes, restaurants, commercial food producers and even by perfumeries. Unbeknownst to many of these businesses the vanilla they are using likely has been harvested by children in Madagascar whose families are indebted and exploited by vanilla buyers. Efforts are being made to address these exploitive practices but the reality is that consumers enjoying vanilla slices at their favourite Melbourne cafe are likely supporting the exploitation of children. The answer cannot be to avoid vanilla and vanilla slices (which would be sacrilegious to many of my Victorian friends and family). Clearly, avoiding products and services connected with slavery is not an effective or even practical way to combat slavery.
If avoidance is not the option, what is?
Transparency
Transparency and regulation are key tools which will allow consumers to make more informed decisions while changing business strategies and practices. Transparency refers to the willingness of companies both big and small to allow their practices to be scrutinised. Many businesses, including those who are doing the right thing, often lack the capacity or the understanding of the importance of having transparent business practices. The scrutiny that comes with transparency should be viewed as a positive as it is often very difficult for businesses to fully understand their exposure to slavery. Businesses can begin to take positive steps to address these concerns when they are brought to their attention. A paradigm shift needs to occur so that businesses will begin to embrace a transparency as a critical step in addressing local and international slavery.
Labour Laws
Labour laws in countries like Australia are relatively robust so the average business will often be able to avoid any association with exploited practices which could be classified as slavery as long as they are complying with Fair Work legislation. With minimal effort, businesses can ensure their compliance with Australian regulations and laws to ensure that their workers receive the legal rights and benefits. Additionally, workers in Australia have access to significant government resources which, at no cost to them, provide information about their workplace rights. Access to this information, including to workers who originate from other countries, is possibly the most important step that countries like Australia can take to ensure that slavery does not establish a greater foothold in industries than it already has.
Of course the benefits of Australian labour laws only extend to those who are working in Australia. The protections afforded by these labour laws does not extend to workers producing products or providing services from outside of Australia. For example, Australian labour laws are of no benefit to the children harvesting vanilla beans in Madagascar
Anti-Slavery Legislation
Anti-slavery legislation and the establishment of an Anti-slavery Commissioner here in Australia have the potential to significantly reduce the risk to workers falling into slavery regardless of their nationality. Unfortunately, the potential benefits of this legislation and Commissioner may never occur or be fully realised if the limitations on the scope of these endeavours remain. The Anti-slavery Commissioner is limited by their legislative powers which may not allow it to investigate employers and businesses who may be engaged in slavery throughout Australia.
Some business groups are advocating for the Anti-slavery Commissioner to be more of an educative body. They would prefer for businesses to simply self-regulate their businesses connections with slavery. This view is misguided as businesses have not demonstrated a general willingness to seek out and address slavery within their business. If self-regulation was working there would be no need for an Anti-slavery Commissioner because there would be no slavery to be addressed within Australian businesses. Additionally, there would be a range of clearly marketed slave-free products and services available to consumers. Clearly, self-regulation and education alone are inadequate to provide consumers with real choices.
The Anti-slavery Commissioner will be little more than an educational window dressing without the ability to investigate and potentially prosecute businesses which are engaged in slavery. Ideally, the The Anti-slavery Commissioner should be granted the power to investigate any and all allegations of slavery raised by workers regardless of the industry in which they work. An Anti-slavery Commissioner with these powers will be able to provide a real and effective resource to workers in Australia to ensure that slavery is discovered and dealt in a similar manner to how labour laws are dealt with. An effective Anti-slavery Commissioner will have the flow-on effect of providing consumers with confidence that they are not contributing to slavery when the buy Australian products and services.
Whether the Anti-slavery Commissioner will become and effective part of the Australian labour laws is yet to be determined as the full scope of their powers are still to be determined by the federal government.
The Modern Slavery Act
The Modern Slavery Act in its current form requires businesses with revenues of $100 million or greater to provide a modern slavery statement which describe the structure of the company, the risks of modern slavery practices in its operations or supply chains, describe the actions taken to assess and address those risks, and describe the effectiveness of those actions. These statements are publicly available. This law is the first step towards transparent business practices. However, more needs to be done.
Companies with revenue less than $100 million per year only are required to meet the reporting criteria of this Act if they voluntarily agree to be bound by it.
The Modern Slavery Act does not compel companies to change their practices if they are at risk of being connected with slavery. There is also no requirement for businesses to reduce their connections with slavery if these connections are found. Criminal laws around slavery exist is Australia, however, there are no provisions in the Modern Slavery Act to make a business accountable to it knowingly supporting or remaining connected with slavery.
In essence, this legislation provides consumers with access to statements drafted by businesses of their views on how their practices may be connected with slavery.
Essentially, this self-reporting is little more than another form of self-regulation albeit the larger companies are required to make these statements. Consumers are then left to evaluate whether the products and services they buy are connected to slavery. Aside from potential negative consumer sentiment, there are minimal consequences for companies who either do not comply fully with this legislation or who fail to adequately and comprehensively address issues of transparency within these statements. In essence, this legislation has left consumers to decide, with little objective evidence, what products and services they will or will not purchase.
The Modern Slavery Act does provide consumers with access to sufficient information to realistically affect the market by ensuring their purchases do not support slavery.
It is an important first step with respect to transparency here in Australia but it is far from being able to provide a mechanism that would guarantee or at least provide some certainty to consumers that someone other than them is watching business with respect to slavery here in Australia.
The attorney-general in their 2021 review of the Modern Slavery Act made 30 recommendations. These recommendations included:
the introduction of a penalty for non compliance with statutory reporting requirements.
reduction of the reporting threshold from $100 million to $50 million.
requiring businesses to report on modern slavery incidents and risks.
requiring businesses to have effective due diligence systems in place.
strengthening the administration of the Act by increasing the government's powers with respect to the way they interact with businesses.
increasing the functions of an Anti-Slavery Commissioner.
A full list of the attorney-general’s recommendation can be found on pages 11 to 14 of its report.
Both the Modern Slavery Act and the establishment of an Anti-Slavery Commissioner are important and necessary steps to provide consumers with some certainty with regarding the products they purchase and the businesses they use here in Australia. However, these steps are very much preliminary and do not significantly reduce the risk of consumers inadvertently obtaining products and services here in Australia which have a connection with slavery. Hopefully, this Act and the Commissioner will become stronger over time.
Stay tuned for Part 2 of this conversation - looking at the benefits of businesses being willing to self regulate when it comes to modern slavery in their supply chain. Ultimately, this will bring about a reduction in modern slavery and help consumers to make informed decisions when purchasing goods and services.
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We are always interested in feedback and new ideas that people may have with respect to changes that can be made at the brick factories and any other businesses that New Rivers is involved in. We look forward to hearing from you - email us at info.newrivers@gmail.com.
Pictured: Manfred, Michelle (centre) and the New Rivers Team
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