Labour trafficking in our supply chains

Labour trafficking takes place in every country of the world, in every industry. Despite governments and corporations pledging to put an end to exploitative employment practices, the problem persists around the globe. 

The International Labour Organization (ILO) estimates that there are 27.6 million victims of forced labour worldwide as of 2021, an increase from 24.9 million in 2016. That is 3.5 people for every thousand people in the world. 

What is labour trafficking? 

Labour trafficking (also known as forced labour) is the control and exploitation of an individual for their labour. Force, fraud, and/or coercion are used to make the victim perform tasks. Labour trafficking situations usually involve very poor and/or unsafe working conditions, extremely long hours, and unfair or non-existent wages.  

Labour trafficking is not just an international issue – it’s a Canadian issue as well. From clothing to electronics, many of the products we purchase regularly are likely produced in some part by child and/or forced labour somewhere in that supply chain. Additionally, labour trafficking is taking place right here in Canada, in a variety of sectors such as agriculture, food service, hospitality, and construction.  

Factors enabling labour trafficking in modern supply chains 

Modern supply chains are incredibly complex. Even a seemingly simple product can have a lengthy supply chain spanning numerous countries around the globe.  

Many modern supply chains involve multiple levels of subcontracting and outsourcing. Subcontracting is a business model in which a portion of the manufacturing process is outsourced to a third-party contractor. A business may outsource the assembly of a product, or the manufacturing of a certain component of a product. Although subcontracting can reduce labour and overall asset costs, it also involves losing some visibility and control over the production process. 

The transparency of modern supply chains makes it difficult to monitor what is taking place at each step of production. Goods often pass through numerous subcontractors and middlemen before reaching the final consumer. This intricate network makes it easier to conceal exploitative labour practices and makes it difficult to hold any single entity accountable for their practices. This lack of transparency in our supply chains is allowing unethical practices to persist, shielded by the complexity of the supply chain. 

Risky goods 

The Bureau of International Labor Affairs (ILAB) maintains a list of goods which are believed to be produced by forced labour or child labour. The list is intended to raise awareness about the prevalence of child and forced labour around the world and encourage efforts to combat it.  

Goods at risk of being produced by forced or child labor, span a broad range of industries, particularly those requiring significant manual labour to produce. Many of these “risky goods” with a high likelihood to be produced by forced labour, are household staples, such as coffee, textiles, chocolate, and electronics. 

Fast Fashion 

Fast fashion, characterized by the rapid production of inexpensive clothing to meet changing trends, often relies on supply chains that exploit forced labour. Each piece of clothing must travel through a complex supply chain before it reaches store shelves or is shipped to your door. As companies push to increase their profit margins, they are looking to cut costs and increase efficiency wherever possible during the manufacturing process. This pressure incentivizes suppliers and subcontractors to increase working hours and reduce labour costs.  

Incidents like the 2013 Rana Plaza collapse are a painful symbol of the poor working conditions and exploitation many in the garment industry face. The collapse, caused by structural issues ignored by garment factory owners, killed over 1100 garment workers and rescuers, and injured over 2600. The collapse sparked a movement to improve occupational health and safety in Bangladesh, and many laws were changed or introduced to protect worker safety. Despite these improvements, garment workers in Bangladesh and other countries around the globe are still working under exploitative labour conditions. 

Agriculture 

Agricultural products like coffee, cocoa, and sugar are labour intensive to produce and harvest. They are often grown in rural and remote regions, where oversight of labour practices is limited. Much like the garment industry, the increasing demand for inexpensive agricultural products drives cost-cutting measures that often come at the expense of fair labour practices. 

Electronics 

Electronics and technology products, particularly those requiring the extraction of rare minerals like cobalt and lithium, are vulnerable to exploitative labour practices. The extraction of these minerals, necessary to produce technological components such as batteries, often takes place in conflict-prone regions with weak governance and insufficient labour regulations. Workers are often subject to dangerous working conditions. The intense competition in the technology sector and demand for low-cost, high-volume production drive companies to seek out the cheapest labour for their products. Additionally, the rapid pace of innovation and demand for new products further exacerbates this pressure and increases the risk of forced labour.  

Many of the products we use today involve forced or child labour at some point during their production. Explore the ILAB list of risky goods and    consider where the goods you consume frequently are sourced from. 

What can consumers do? 

Eradicating exploitative practices from our supply chains requires consumer action. Knowledge is the primary tool to fight exploitation. Here are a few ways you can fight labour trafficking in our supply chains: 

• Research where the products you consume come from (particularly those listed as risky goods) and seek out information on the labour practices and supply chain transparency of the companies you support. 

• Support brands that are committed to ethical sourcing and are transparent about their supply chains and labour practices. 

• Avoid fast fashion companies.Opt to buy vintage or second-hand products. Do your research and choose high quality, fair trade, and ethically sourced pieces that will last you a long time. Consider the clothing you already own as well: do you need another pair of shoes or jeans? Host a clothing swap with friends and family and trade pieces from your closet that you don’t wear frequently. 

• Use social media to raise awareness about the prevalence of labour trafficking in our modern supply chains, and demand action from corporations. 

• Stay informed about laws and policies aimed at preventing labour trafficking. 

• Donate to and volunteer with NGOs and other organizations fighting labour trafficking in Canada and around the globe.  

YOU can contribute to the fight against labour trafficking and promote fair and ethical labour practices in our supply chains. Be a mindful consumer, and raise awareness among your family, friends, and community about the prevalence of labour trafficking in modern supply chains.