Letter to the Editor
October/November Issue
Since 2010, October 18th is marked as Anti-Slavery Day to raise awareness of the growing issue of modern slavery, human trafficking, and exploitation. As part of Anti-Slavery Day this year, STOP THE TRAFFIK partnered with IBM to discuss how technology can be leveraged for good in eradicating modern slavery and human trafficking. Over 40 attendees downloaded the STOP APP and learned how to report suspicions of exploitation safely to support early interventions.
With nearly 50 million people in forms of slavery, exploitation can be found in every industry and in every country. Today, there is an even deeper need for collaboration across sectors to share solutions and ultimately prevent modern slavery in the future. In this monthly brief, we highlight how modern slavery and human trafficking is embedded into different sectors from poultry to care homes to cryptocurrency; and offer recommendations on how stronger governance, regardless of industry, can help eradicate this issue.
As always, we hope you find this newsletter useful in outlining the pertinent issues and recommendations relevant to modern slavery and your business. We would love to hear your thoughts on how we can improve our monthly brief and continue to serve you in the best way possible.
Always,
Chris Jones
Director of Commercial and Marketing
CONSUMER
Child Labour in US Poultry Processing
Two poultry processing firms in the US are under investigation for allegations of contractors hiring migrant children in their workforce. Businesses operating across food supply chains need to address the risks of exploitation, specifically child labour, associated with poultry, the world’s primary source of animal protein.
The largest poultry meat-producing countries are the USA (18% of global output), followed by China and Brazil. Poultry producers allegedly used contractors to hire staff to clean their slaughterhouses, who employed migrant children to meet demand. A recent New York Times Magazine report outlined the experience of a 14 year old boy from Guatemala who worked overnight shifts in a US slaughterhouse to support his family, and nearly had his arm torn off during this work. Federal law restricts individuals under age 16 from working certain hours and prohibits minors from working in meat processing plants due to the hazardous conditions of this work.
This is a systemic issue. In February 2023, a food sanitation contractor was forced to pay a $1.5 million penalty for employing over 100 children to work overnight at meat processing plants in the US. Businesses need to hold themselves accountable for their subcontractors and the actions that facilitate exploitation practices such as child labour in their operations and supply chain.
What can your organisation do?
- Conduct due diligence on contractors before entering partnerships and continue to monitor their compliance with your businesses policies and procedures on child labour.
- Support your suppliers and subcontractors in understanding and complying to your child labour and modern slavery policies, procedures, and expectations.
- Regularly audit high risk commodity sites in your supply chain, ensuring unannounced visits and checks during night shifts, specifically for operations where cleaning occurs at night.
FINANCIAL SERVICES
Myanmar – Cryptocurrency and AML
Cyber scams based in Myanmar are tricking scam victims to ‘invest’ in cryptocurrency through online dating sites. Organised crime gangs operate these scams to exploit people across borders and force them to scam people across the globe to finance their criminal activities.
Organised criminal gangs with links to China have established ‘pig butchering’ internet romance scam bases across Myanmar. In Myanmar, major crime bases have emerged in the Myawaddy region and the Shan State. These areas have extensive histories of criminal activities and are remote.
STOP THE TRAFFIK’s intelligence team are supporting several victims of trafficking who are currently trapped in a call centre in Tachileik, Myanmar, and are being forced to conduct cryptocurrency scams. Over 100 victims are at this location and were recruited from China, Thailand, and Sub-Saharan African countries through online ads advertising online sales jobs in Thailand. Through victim support, STTG is gaining insights into the operation of the criminal network behind the call centre, including bank accounts owned by the perpetrators, phone numbers and social media profiles of people involved in the network, and websites used to scam and transfer cryptocurrency. This intelligence helps to target criminal organisations through means such as financial transactions.
What can your organisation do?
- Conduct enhanced AML checks on transactions from Myanmar, such as actively monitoring accounts transactions.
- Work with NGO’s and law enforcement to support targeted investigations of organised crime gangs, such as monitoring known bank accounts and contact details through your systems.
GOVERNMENT AND PUBLIC SERVICES
Exploitation in UK Care Homes
The care sector in the UK employs 1.8 million workers, and staff turnover is almost 30%. As such, the UK’s social care system is relying heavily on overseas agencies to recruit low-paid migrant workers, who are vulnerable to exploitation, to fill gaps in the workforce.
In March 2023, about 58,000 people came from overseas to help fill the 165,000 vacancies in the UK social care sector. Workers are being recruited from countries such as India, Nepal, Philippines, Ghana, and Bulgaria through third party agencies and contractors. In these countries advertisements are posted on social media and other formal job sites, along with in person recruitment efforts where practices of debt bondage are commonly reported. Third party contractors and agencies are routinely retaining workers’ identification and controlling negotiations with care businesses. Whilst public service unions have received reports of care workers working 19 hour shifts without breaks, having their wages withheld and being required to be on call permanently. Businesses need to hold themselves accountable for the use of recruitment agencies that can facilitate exploitation practices in their operations.
What can your organisation do?
- Train corporate HR teams on how to spot the signs of potential exploitation, such as multiple workers having the same contact and bank details.
- Conduct enhanced due diligence on recruitment agencies or contract labour providers and enforce compliance with your labour rights policies and procedures.
- Support workers in understanding their rights and provide a reporting mechanism accessible for the workforce to report and raise concerns of exploitation.
TECHNOLOGY AND MEDIA
China Produced Computer Chip Restrictions by US Legislation
Despite China’s booming computer chip industry, it is alleged that the US will continue to accelerate their technology export restrictions on China. Existing sanctions have failed to prevent Chinese firms finding loopholes to enter the market, potentially exposing businesses to exploitation.
Recent US import restrictions on China’s computer chip (also known as semiconductors) are in response to potential Chinese use of technology to upgrade their military arsenal. Although western businesses are pulling out technology and money from China due to restrictions on chip exports, the Chinese state continues to invest in the development of homegrown computer chips. China is the world’s biggest producer of the metals gallium and germanium, key resources used in the productions of solar panels, military equipment, and semiconductors. Sheffield Hallam research has uncovered the direct links between solar panel production in China and the state sponsored forced labour of the Uyghur people, especially as these metals are found predominately in the Xinjiang region.
A Chinese company sanctioned by the US in 2021 for its use of forced labour announced it was further expanding its manufacturing of polysilicon in the Xinjiang region, which is used for solar panel and semiconductor production. There is a risk that semiconductors from China will still have forced labour in their supply chain. With some Chinese firms continuing to find loopholes in the existing legislation, businesses need to be aware of the risks associated with semiconductor production in the country.
What can your organisation do?
- Conduct due diligence on your technology suppliers and engage with them to understand their semiconductor sourcing policies and procedures for technology equipment.
- Understand US legislation using resources such as the US Department of Commerce Entity List and build systems to support compliance.
GLOBAL DEVELOPMENT
South Korea’s Proposed Mandatory Human Rights and Environmental Due Diligence Bill is First of Its Kind in Asia
South Korea is yet another country to join the growing global legislation trend, proposing its own human rights and environmental due diligence bill, the first of its kind in Asia. This proposed bill is another clear indication in the increasing global expectation for businesses to act responsibility in regard to human rights and the environment.
On September 1st 2023 the Act on Human Rights and Environmental Protection for Sustainable Business Management was proposed to Korean Congress. The first of its kind in the region, the bill proposes to mandate corporate responsibility such as requirements for Korean companies to formulate and internalise human rights commitments, conduct human rights and environmental impact assessments and operate effect grievance mechanisms. Whilst a draft bill is yet to be published, this legislation would require South Korean companies to make consistent efforts to protect human rights and the environment where voluntary efforts have been insufficient.
The bill follows similar legislative developments in Europe, such as the German Supply Chain Due Diligence Act. Initially South Korean companies with 500 or more employees will fall within scope of this proposed legislation, however it is not yet clear whether this will extend to subsidiaries or foreign companies operating within the country. This proposed bill is another reason to ensure your organisation is acting responsibly and investing in continuous improvement of its modern slavery prevention and human rights efforts.
What can your organisation do?
- Assign responsibility to an individual or a group for the monitoring and reporting of progress against current and upcoming global legislation.
- Review proposed bills and legislation to establish if your organisation meets the criteria of reporting or will be expected to in the future.