The Global Slavery Index 2023

​Spotlights 4 

​Guardians and Offenders: Examining State-Imposed Forced Labour (Part 5)

Tainted supply chains 
State-imposed forced labour may seem like an issue contained within national borders, yet many products associated with forms of state-imposed forced labour end up in global supply chains, with implications for governments, businesses, and consumers around the world. During the pandemic, for example, personal protective equipment (PPE) at risk of being produced using forced labour of Uyghurs was reportedly imported to Australia and the United Kingdom, and PPE produced using forced labour of North Korean women in China was reportedly procured by the UK government.
 
Businesses that profit from state-imposed forced labour are increasingly exposed to associated legal, financial, and reputational risks. As noted above, the Supreme Court of Canada ruled in February 2020 that a mining company could be prosecuted in Canada for using the forced labour of conscripts at their mine in Eritrea. A confidential settlement was reached following the decision. At the time of writing, other legal actions are underway in Germany, the Netherlands, and France against companies that allegedly used state-imposed forced labour in their supply chains.
 
State-imposed forced labour is arguably the most challenging form of modern slavery to address. Ending abuses by the state against the very citizens it is entrusted to protect requires strong political commitment. While governments imposing forced labour must ultimately take action to reform the systems that enable their abuse, the reality is that change is most likely to arise from sustained external pressure from other governments, businesses, and civil society. 
 
Recommendations for Governments
Governments committing state-imposed forced labour must immediately publicly acknowledge the existence of serious human rights violations that are tantamount to state-imposed forced labour and take actions to end it. This must include addressing underlying persecution and discrimination driving state-imposed forced labour practices and repealing legislation and criminalising practices that allow state- imposed forced labour to occur. 
 
Other governments must prioritise human rights and take action, including:  
Leverage bilateral relations, trade, and other diplomatic measures to pressure perpetrators of state-imposed forced labour to eradicate the practice, including introducing Magnitsky-style and other coordinated sanctions. 
 
Strengthen public procurement systems to prevent sourcing goods made with state-imposed forced labour and ban companies from tendering if they are connected to state-imposed forced labour. 
 
Introduce legislation requiring businesses to conduct mandatory human rights due diligence to avoid sourcing goods made with state-imposed forced labour, banning import of goods made with state-imposed forced labour, and prohibiting the export of goods to companies using state-imposed forced labour. 
 
Introduce restrictions on investments connected to state-imposed labour. 
 
Recommendations for Business
Where state-imposed forced labour exists in a country, region, industry, or company and if operating in line with the UN Guiding Principles has become impossible (for example, conducting due diligence or providing effective remediation), withdraw from sourcing goods and services from that country, region, industry, or company as necessary. 
 
Avoid investing in companies connected to state-imposed forced labour, for example, private equity investments that might contribute, or listed equity investments that might be directly linked, to state-imposed forced labour. 
 
Walk Free 2023. Global Slavery Index 2023. Minderoo Foundation Ltd. Australia.