THE CASE FOR AN

AUSTRALIAN

MODERN SLAVERY ACTCopyright © 2017. The Minderoo Foundation Pty Ltd.
All rights reserved. Printed in Australia.

A tea worker picking leaves in atea plantation. Sri Lanka is theworld’s fourth largest producer oftea. Overwhelming evidence has
documented the many exploitative
practices hidden within the tea
supply chain in many countries,
including Sri Lanka, with cases offorced labour, child labour andtrafficking. In response to public
outcry and consumer campaigns,
some businesses have begun
to clean up their supply chainsand provide sustainable working
conditions for workers. (2013)
Photo credit, mattjeacockFOREWORD
can collaborate to find creative, commercial and long
lasting solutions.
Who is better placed than large companies to review supply
chains, with demonstrated success at managing global
networks to transform sectors, not only to protect victims
but because it makes business sense? When better thannow, in an era where an email can be sent instantly acrossthe world to suppliers, allowing us to engage in regular andaccountable dialogue with business partners?

Across the nation, from school assemblies to footballmatches, Australians proudly sing our national anthem,

Australians all let us rejoice,for we are young and free.
Freedom is one of the fundamental values underpinning
Australian society. However, there are tens of millions ofpeople across the world, including in Australia, who haveno freedom – living as modern slaves.

Conversations around modern slavery have dramaticallyincreased with the appointment of an independent
commissioner in the UK and emerging laws in the UK,
USA and Europe. Successive Australian governments havealready introduced stronger laws to criminalise humantrafficking and slavery. Australian companies including
Qantas, Wesfarmers and the Commonwealth Bank ofAustralia are already filing slavery statements under laws
overseas. The Attorney General, Senator the Hon George
Brandis QC, has asked the Joint Standing Committee on
Foreign Affairs, Defence and Trade to inquire into andreport on establishing a Modern Slavery Act in Australia.
These are important first steps.

The shock to me, as a business leader, has been
the prevalence of modern slavery within the supply
chains of most global companies. My eyes have been
opened to those victims, hidden within multi-tiersupplier relationships, silently paying the cost of rapid
globalisation, falling through the gaps in regulation of
emerging markets.

Yet, this is not a new issue. Slavery has existed, in manydifferent forms, since ancient times. Here in Australia,
our history books contain pages of horrifying abuses
inflicted on the victims, including Aboriginal people andSouth Pacific Islanders, forced to work on outback sugar
plantations and cattle farms. Most of us are repulsed bythose images and protest that if we lived in those times, wewould never sit by and let such horrific human rights abuses
happen. Yet we are sitting by and it is happening today.

Our businesses have the power to influence change
within supply chain networks, to drive up standards andremove the profitability of modern slavery. The cost to
us is minimal, as the profit is made by the enslavers, whodisappear when approached or discovered. The buck,however, stops with us, and it is our reputation that isburnt. Governments also have a critical role to play to
encourage all in industry to take such action by introducing
a clear, action-oriented but non-punitive legal framework.

Modern slavery surrounds us in our everyday life inAustralia and throughout our increasingly interconnectedworld. The crime may (but not always) look different
today, but at its core remains the same – those people
most vulnerable and marginalised are exploited for the
personal and commercial gains of another. Empirically it
has been proven, and instinctively we know, that relianceon slavery prevents long term sustainable development
both for a country’s economy and civil society.

We cannot be complacent. It’s time now to act, to legislate
and to work together to end modern slavery. In thisoverview, we’ve set out the case for an Australian “Modern
Slavery Act”, addressing in turn the key questions: “what”
is modern slavery, “who” is affected, “how” are youconnected to modern slavery, “where” are the gaps in ourlegal framework and “why” it matters.

Australia has an opportunity to show leadership within ourown country and region by introducing a “Modern SlaveryAct”, sending a clear message that Australians will notstand by and accept modern slavery. I urge you to add yourvoice to this issue. It will change your life, as it has mine.

And it does matter. Introducing a “Modern Slavery Act”
is not about punishing companies or adding more redtape. These proposed laws are deliberately designed toencourage and not penalise CEOs to look for modern
slavery. If they find it, rather than point fingers, sectors

Andrew Forrest,
Chairman, The Minderoo Foundation
Founder, Walk Free Foundation
Chairman, Fortescue Metals GroupThe Case for an Australian Modern Slavery Act

1

IT OUGHT TO CONCERN...

EVERY PERSONBECAUSE IT IS A DEBASEMENTOF OUR COMMON HUMANITY.
...

EVERY COMMUNITYBECAUSE IT TEARS ATOUR SOCIAL FABRIC.
...

EVERY BUSINESSBECAUSE IT DISTORTS MARKETS.
...

EVERY NATIONBECAUSE IT ENDANGERS PUBLIC HEALTHAND FUELS VIOLENCE AND ORGANIZED CRIME.
I’M TALKING ABOUT THE INJUSTICE,
THE OUTRAGE, OF HUMAN TRAFFICKING,
WHICH MUST BE CALLED BY ITSTRUE NAME — MODERN SLAVERY.
– 44TH US PRESIDENT BARACK OBAMA1

2

The Case for an Australian Modern Slavery Act

EXECUTIVE SUMMARY

THIS IS THE CASE FOR AN AUSTRALIAN “MODERN SLAVERY ACT”.

HERE ARE YOUR KEY QUESTIONS ANSWERED:WHAT

Modern slavery refers to situations where one person has taken away anotherperson’s freedom – their freedom to control their body, their freedom tochoose to refuse certain work or to stop working – so they can be exploited.
Freedom is taken away by threats, violence, coercion, abuse of power anddeception. With 45.8 million slaves worldwide, it affects almost every sector,
region and company.

WHO

Every story is different, but victims are usually those most vulnerable such as
refugees, migrant workers, women and children. Case studies in this overview
demonstrate how widespread modern slavery is in Australia, in our region andwithin our supply chains.

HOW

Globalisation has resulted in a demand for cheap labour and modern slavery isoften hidden within a vast range of supply chains, a long way from the country
where goods are sold. Most Australians and companies are unknowingly
benefiting from modern slavery in the food we purchase, clothes we buy,
suppliers we hire and companies in which we invest.

WHERE

Australia needs a “Modern Slavery Act” that addresses three issues as a priority:

IS MODERN SLAVERY?

IS AFFECTED?

ARE YOU CONNECTED TO
MODERN SLAVERY?

ARE THE GOVERNANCE GAPS?

1. Anti-Slavery Commissioner - appointment of an Anti-Slavery Commissioner
to provide independent oversight, with powers to monitor laws and holdbusiness and the Government accountable.
2. Modern Slavery Statements - requirement for large organisations doing
business in Australia to annually report on steps taken to eradicate modern
slavery within their organisation and supply chains.
3. Central Repository - creation and maintenance of a publicly accessible
repository of all modern slavery statements filed each year.

WHY

45.8 MILLION REASONS

By introducing an Australian Modern Slavery Act, the Australian Government
has an opportunity to show leadership domestically and in the region toprotect the victims of this atrocious crime and eradicate modern slavery.
An Australian “Modern Slavery Act” is needed as the next step to build on theexisting voluntary initiatives, laws and international standards. It would address
the unregulated gaps in global markets and harness the power of businessto remove the profitability of modern slavery. Clear laws will level the playing
field, so that companies doing the right thing or that are otherwise regulated
by international laws (such as the UK Modern Slavery Act) are not undercut by
unscrupulous companies or otherwise disadvantaged.
Legislation is a powerful tool to shape and change corporate behaviour. Laws
are needed to respond to the growing calls from religious organisations,companies, civil society, investors, employees and consumers for more action
to be taken to end modern slavery.

The Case for an Australian Modern Slavery Act

3

WHAT

IS MODERN SLAVERY?
Modern slavery refers to situations where one person has
taken away another person’s freedom so that they canbe exploited.
Modern slavery covers a wide spectrum of crimes, but thecommon thread is any situation of exploitation where aperson cannot refuse or leave because of threats, violence,
coercion, abuse of power or deception. A person’s passport
might be taken away if they are in a foreign country, they
may experience or be threatened with violence or theirfamily might be threatened. In some shocking situations
victims are treated in a manner worse than our basic
standards for farm animals – people are used and disposedof at will. In some cases this can be accompanied withhorrific sexual exploitation.

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The Case for an Australian Modern Slavery Act

Different countries use different terminologies, but in thisoverview, the term “modern slavery” is used to refer tohuman trafficking, slavery and slavery like practices suchas servitude, forced labour, forced or servile marriage,
the sale and exploitation of children, and debt bondage.
These crimes are often the most exploitative andgrievous circumstances of abuse, but it is important torecognise that they are often accompanied by otherhuman rights abuses and poor labour standards, hidden
behind systemic corruption and bribery.
Modern slavery can be found within almost every sector,
region and company.

WHO

IS AFFECTED?
45.8 million people are subjected to some form of modern
slavery in the world today (Global Slavery Index, 2016).
Within Australia, cases of modern slavery have beenfound across the agricultural, construction, manufacturing,
hospitality and domestic sectors. Those workers highest
at risk include those who are physically or linguisticallyisolated, culturally disorientated, subjected to crushingdebts and have little to no knowledge of their rights.

Its victims are from all walks of life,
but are most frequently among thepoorest and most vulnerable ofour brothers and sisters. On behalfof all of them, our communities
of faith are called to reject,
without exception, any systematic
deprivation of individual freedom
for the purposes of personal orcommercial exploitation.
Pope Francis2

DOMESTIC SERVITUDE:SLAVERY IN THE SUBURBSOF SYDNEY
Case study as told by theSalvation Army3

Sandra was working for a family in the Pacific Islands, and when they offered
to relocate her to Sydney to work as a housekeeper – it sounded too good
to be true. Yet when she arrived her passport was taken and it became clear
she wouldn’t be paid. Sandra was required to do all housework, gardening,caring for pets and cleaning the swimming pool. She became fearful for her
safety. She wasn’t allowed to leave the house or contact her family – enslavedin suburban Sydney. After many years, Sandra managed to escape to theSalvation Army Safe House which offers protection and support for victims of
trafficking and slavery.

FORCED LABOUR:
SEAFOOD SLAVERY
Case study as told byEnvironmental Justice Foundation4

Aung Kyi’s story is one of thousands entrapped in slavery in the Thai fishingindustry. Originally from Myanmar, Aung Kyi had just quit his factory job when
he met a “taxi driver” out one night. After a few drinks, the taxi driver offered
Aung Kyi a place to stay. The next morning, he woke up in a room with 20
other people, only to find that he had been trafficked to work on Thai fishingboats. Entrapped in a complex network of criminals, he was subjected tophysical abuse, held at gun point and forced into labour to pay off extortionate“recruitment” debts and interest. He escaped nine years later. His story is notuncommon. There have been many reported cases of modern slavery, together
with physical abuse, excessive overtime and inadequate access to food. The
seafood caught by modern slaves has been tracked and found in the supply
chains of major retailers and restaurants across the world, including Australia.

FORCED CHILD LABOUR:
SOLD TO GOLD MINERS
Case study as told by Verite5

When “Oscar” was 16 years old, his female cousin, who had worked in a bar ina mining camp far along the Colorado River in Madre de Dios (Peru), convinced
him to take a job at the mine with stories of how he would be paid in chunks ofgold. Oscar later discovered that his cousin had in fact “sold” him to the mineowner and was made to work for 90 days to pay off the money that his cousin
had received for recruiting him before he could go. After working for thisperiod however, Oscar had no money to leave, and even if he did, the canoes
that transported workers were controlled by the mine owner.

The Case for an Australian Modern Slavery Act

5

HOW

ARE YOU CONNECTED TO MODERN SLAVERY?
Globalisation has resulted in a demand for cheap labourand modern slavery is often hidden within a vast rangeof supply chains. Supply chains today are increasinglyinterwoven and span multiple countries. The International
Labour Organization (ILO) provides a poignant example
of a “night out at the movies”.6
Imagine that you are in a cinema watching a popularanimated movie. Now imagine all the people that madethe experience possible. The movie itself was made by acompany in the United States, using subcontractors in India
and the Republic of Korea. The popcorn you are eating was
harvested by workers in Argentina, prepared with palm
oil from a Malaysian plantation and produced in machinesassembled in Italy. The seat you are sitting on was made in
Poland. The car you drove to the cinema was assembled in
Spain, with parts from Austria, France, Japan, Mexico andThailand and was transported on a container ship owned
by a Greek national through a Liberian company, which wasbuilt in Japan and powered by Finnish engines. Indeed, thetwo hours you spend watching the film may have required
the labour of thousands of people in dozens of countries in
global supply chains.”
Many of the countries mentioned in the ILO example are
rated with a high risk of modern slavery, with significant
gaps in regulation for human rights and labour standards.

While many of these abuses occur in the supply
chains of major global corporates, cases of blatantand deliberate corporate abuse are rare. Most do noteven know what modern slavery looks like or just how
susceptible their own supply chains are to it.
Investigating supply chains for modern slavery is acomplex process. It is hard to maintain visibility overmultiple layers of subcontracting and is made even moredifficult when suppliers deliberately deceive parent
companies. They can do this by lying about working
conditions, sub-contracting in breach of terms, or using
unauthorised third party recruiters. Whistleblowing has
limited success as victims feel they cannot speak up
because they are heavily indebted, fear recrimination or
simply do not know how.
This issue is not insurmountable. With a clear legal
framework that encourages companies to takeproportionate and reasonable action within their spheresof influence and through the sharing of resources acrossall sectors, businesses can work towards eradicating
modern slavery across the world. Large companies
already have systems in place to expose bribery, corrupt
practices and money laundering. Why not extend these
existing procedures to look for modern slavery?

Most Australians are unknowingly
benefiting from modern slavery
in the food we purchase, theclothes we buy, the suppliers
we choose and the companies
in which we invest. Consumers
have gained from the exploitationof migrant workers picking fruitin Australia; factory workers in
Malaysia subjected to forced labour
producing the latest smartphone;
the enslaved fishermen catching
seafood to stock the shelves ofAustralian supermarkets.
A view of collapsed Rana Plaza buildingin Bangladesh. Over 1,130 workers ofapparel factories were killed and 2500
others were injured when the eightstorey factory building collapsed on theoutskirts of Bangladesh capital Dhaka
in 2013. Bangladesh is one of the majorcountries supplying ready made garments
to leading apparel brands in the USA andEurope. Bangladesh also earns over US$28
billion a year by exporting apparel items.
Photo credit, Farid_Ahmed
6

The Case for an Australian Modern Slavery Act

The Case for an Australian Modern Slavery Act

7

THE POWER OF BUSINESSFORTESCUE METALS GROUP CASE STUDY
It is not acceptable for any
organisation to say, in the twentyfirst century, that they did not
know. It is not acceptable fororganisations to ignore the issue
because it is difficult or complex.
And, it is certainly not acceptable
for an organisation to put profit
above the welfare and wellbeing of its employees and thoseworking on its behalf.
Theresa May, UK Prime Minister7

Fortescue then used its commercial influence and leverage
to ensure all passports were returned, illegal fees paidback and major overhauls were made to ensure it did not
happen again. Fortescue now has systems and policies
in place to give effect to a zero-tolerance policy formodern slavery in its organisation and supply chains, andis collaborating with other business suppliers addressing
similar risks.
Fortescue’s anti-slavery foundation documents are:Fortescue Human Rights Policy
Employee Code of Conduct
Directors’ Code of Conduct
Vendor Terms and Conditions

Andrew Forrest needed to know if the company hefounded, Fortescue Metals Group (Fortescue), was“slavery free”. In 2012, Fortescue commissioned an
independent audit by Verité into the working conditionsof the employees of one of its major suppliers.
Confronting stories emerged. Passports of workers werebeing withheld. Intermediary agencies were charging
excessive fees that could never be repaid. Crippled bycrushing debt and without their passports, workers
were unable to leave their employment and had no
ability to report the conditions in which they worked.
The workers were not being deliberately enslaved by
the corporate leaders or the suppliers, but through theirfailure to check the practices of intermediate agencies,
the company had been creating conditions that allowed
modern slavery to thrive.

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The Case for an Australian Modern Slavery Act

These documents establish the essential standards of
personal and corporate conduct and behaviour expectedof everyone who works for or with Fortescue including
directors, employees, contractors, suppliers and business
partners. Fortescue suppliers are required to sign statutory
declarations to confirm their legal commitment to respondto the risks of modern slavery.
In 2016, Fortescue implemented a system of real timerisk alerts, automatically reporting to senior management
any material changes in business partner’s risk ratings formodern slavery. Fortescue reports on modern slavery eachyear in its annual report.
There is no overnight solution, but Fortescue is committed
to the long-term goal of ending the profitability ofmodern slavery.

Photo taken at the Global Freedom
Network (GFN) event in Canberra 2015.
Foreign Minister Julie Bishop is the Joint
Chair of the Bali Process. Andrew Forrestis the Joint Chair of the Bali Process
Government and Business Forum.

THE BALI PROCESSThe Bali Process, co-chaired by Australia and Indonesia,
is a forum that aims to encourage cooperative efforts
against trafficking and people smuggling in the Indo
Pacific region.
It brings together governments of 45 countries, 3 UN
organisations, and inaugurally for 2017 will include
private sector participants as part of the Bali Process
Government and Business Forum.
The Bali Process Government and Business Forum is aninvaluable opportunity to bring together business leadersacross the region from a wide range of sectors to combine
efforts to eradicate human trafficking, slavery and forced
labour. To ensure real change, business leaders will advise
the governments on how to best tackle modern slavery
from a corporate perspective, provide input on policies
and share experiences on best practices.
The Bali Process Business Forum is the first regional
initiative of its kind in the world. In 2017, it will be cochaired by Eddy Sariaatmadja from Indonesia (founderand CEO of Emtek) and Andrew Forrest from Australia(founder and Chairman of Fortescue Metals Group).

Photo taken at Fortescue Metals Group’s
Christmas Creek mine site in the Pilbara,
overlooking the Ore Processing Facility.
Photo credit, Jean Marc La-RoqueThe Case for an Australian Modern Slavery Act

9WHEREARE THE GOVERNANCE GAPS?
There are a vast array of issues underpinning thecomplexity of modern slavery. The Government and otherorganisations undertake vital work ranging from victim
support and rehabilitation to prosecuting offenders andmuch more. There are many important areas for reform.
In this overview The Walk Free Foundation is focusing
on the issue of modern slavery in supply chains and thegovernance gaps identified.

Friends, this is one of the many waysthat Australia is saying ‘no’.
No to people trafficking.
No to slavery.
That is not a world we will accept.
Not here.
Not overseas.
Not anywhere.
Not ever.
Julia Gillard, Former Prime Minister8

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The Case for an Australian Modern Slavery Act

The Walk Free Foundation, together with other organisations, business and faith leaders,are calling for a “Modern Slavery Act” in Australia that implements three key priorities:

1.
2.

ANTI-SLAVERY COMMISSIONER
The appointment of an independent Anti-Slavery Commissioner to lead Australia’s fight against
modern slavery. A Commissioner is vital for the success of any efforts to tackle modern slavery
and will demonstrate Australia’s commitment as a leader in the region.
As an independent body, the office of the Commissioner would be tasked with overseeing acoordinated response across all sectors; from those on the ground identifying victims andproviding emergency support services, to the police and prosecutors pursuing offenders, tocompanies addressing modern slavery within their supply chains. The Commissioner would havepowers to monitor legislation, hold businesses and the Government accountable and promote
practices to identify and protect victims. The Commissioner would prepare public annual reports
to detail findings, review progress and recommend strategies. The Commissioner would work
together with the Ambassador for People Smuggling and Human Trafficking.

MODERN SLAVERY ANNUAL REPORTING BY LARGE COMPANIESAll large organisations doing business in Australia must publish an annual “Modern Slavery
Statement” reporting on steps taken to ensure modern slavery is not occurring within theirorganisation and supply chains.
Mandatory reporting has proven to be a powerful way of bringing the attention of modern slavery
to senior executives. When a leading global company exerts influence, it has a cascading impact
through its network of suppliers, and can encourage sector wide transformation for the benefitof those most vulnerable at the end of the chain.
There is a strong business case for organisations to be increasingly transparent on non-financial
matters, including modern slavery. Investors are demanding greater clarity and accountability before
doing business with companies, preferring those who proactively address risks rather than wait toreactively respond to a crisis. Almost 10% of the top 100 ASX listed companies are already reporting
under equivalent UK laws.9

3.

CENTRAL REPOSITORY
Maintain a publicly accessible repository to file “Modern Slavery Statements”.
Who must comply? What risks are being identified? Are they doing enough? Without a repository,
it is difficult to answer these questions so that statements can be analysed and the actions (orinaction) of companies monitored. A central repository is needed to ensure reporting laws are
effective in bringing change and importantly progress of companies is measurable as modern
slavery will not be “fixed” overnight. The UK government recognises this gap in the UK law andis currently consulting with NGOs as to how to best manage a central repository for statements filed
under section 54 of the Modern Slavery Act.

Child labour is not a new issue in Bangladesh. Children are one of the most vulnerable
groups living under threats of hunger, illiteracy, displacement, exploitation, trafficking,physical and mental abuse. Many children work in hazardous conditions in factories.
Factory owners prefer to employ children as they can pay them less. For example,
a child earns 5 USD per month, while an adult earns up to 62 USD per month.
Photo Credit, GMB Akash
The Case for an Australian Modern Slavery Act

11

WHY

45.8 MILLION REASONS
There are at least 45.8 million reasons why Australia must
do more to end modern slavery.
Introducing an Australian Modern Slavery Act will seekto (i) show leadership in the region, (ii) build on theexisting voluntary and legal framework, (iii) address thegrowing governance gap that has allowed modern slavery
to flourish, (iv) level the playing field for companies
operating in the global market, (v) encourage a change incorporate behaviour and (vi) respond to growing public
calls for its enactment.

12

The Case for an Australian Modern Slavery Act

1.

SHOW LEADERSHIP IN
THE REGION

Australia can lead the way in introducing a Modern Slavery Act to ensure
the reputation of Australian companies matches foreign policies and global
moral expectations.
An Australian Modern Slavery Act would build on efforts Australia is alreadytaking in the region to eradicate modern slavery. For example, Australia cochairs with Indonesia the “Bali Process” which aims to encourage cooperative
efforts against trafficking and people smuggling in the Indo Pacific region.
The Bali Process is an important forum to bring together the governmentsof 45 countries, UN organisations and for the first time in 2017, private sector
participants. This year’s introduction of the Bali Process Government andBusiness Forum is an invaluable opportunity that encourages the private sector
to provide input on policies, share experiences and show leadership in the region.

One thing is clear: no nation can end modern
slavery alone. Eliminating this global scourge
requires a global solution. It also cannot be solved
by governments alone...But governments have a
special responsibility to enforce the rule of law,share information, invest in judicial resources andespouse policies that urge respect for the rights
and dignity of every human being.
John F. Kerry —Former US Secretary of State10
By introducing an Australian Modern Slavery Act, the Australian Government has
an opportunity to show leadership domestically and in the region to protect thevictims of these atrocious crimes and eradicate modern slavery.
Equally, Australian CEOs have an opportunity to show leadership by supporting
the introduction of these laws. Forward thinking companies have already started
to turn their response to the risk of modern slavery into a business advantage,
rather than business burden. Companies are realising that in order to attract
and retain talent, they need to support laws such as the Modern Slavery Act, as
increasingly employees want their moral values to align with corporate values.
In addition, shareholders and investors are demanding greater clarity andaccountability on risks such as modern slavery which, if they eventuate intoa crisis event, will have a dramatic impact on bottom line profits.

This community was in transition fromslavery to freedom in a stone cutting
district of Varanasi. The members of thiscommunity did not want to be interviewed
as they were concerned by potential
repercussions from authorities, but were
happy for photos to be taken.
Photo credit, Grace Forrest
The Case for an Australian Modern Slavery Act

13

2.

BUILD ON THE
EXISTING FRAMEWORK

Modern slavery is not a new issue.
Introducing a Modern Slavery Act will build on the existing framework in place
domestically and internationally.
Most countries in the world have laws that criminalise modern slavery. In
Australia, successive governments have strengthened the Australian criminal
framework. In 2013 new laws were introduced to improve investigations,prosecutions and victim support for modern slavery crimes. The rate ofprosecutions is low however, with many arguing that crimes of labour
exploitation have not been adequately addressed.
The Government is midway through a five year “National Action Plan
to Combat Human Trafficking and Slavery” which includes reviewing
recommendations from the supply chains working group. In February 2017,
the Attorney General, Senator the Hon George Brandis QC asked the Joint
Standing Committee on Foreign Affairs, Defence and Trade to inquire into andreport on establishing a Modern Slavery Act in Australia. This demonstrates
strong support by the current Government to explore how to improve
Australian laws to prevent modern slavery both within Australia and in supply
chains of organisations that operate in Australia.
An Australian Modern Slavery Act would build on international voluntary
initiatives, including the Guiding Principles on Business and Human Rights(“UNGP”). Introduced in 2011, the UNGP were in part, a response to public
outcry in the 1990s where journalists published images of young children
working in sweat shops. Brands in the spotlight were forced to accept
responsibility for the actions of their suppliers but had little guidance on how
to address these complex issues. The UNGP are one of the most prominent
voluntary initiatives addressing the intersection between human rights andbusinesses. The UNGP receive wide support from states, civil society andthe private sector. Many leading companies are aware of and understandthe relevancy of the UNGP. While largely viewed as “soft law” they formed
an important foundation for “hard law” such as the newly emerged Modern
Slavery Act in the UK, US legal framework and emerging EU Directive on
Non-Financial reporting for large businesses on human rights. . “Hard law” also
provides the impetus and momentum for engagement at a senior level withincompanies. During 2016, the Australian Government agreed to undertake aconsultation to consider the implementation of the UN Guiding Principles inAustralia (which includes developing guidance for businesses on human rights
due diligence reporting).
It would also strengthen domestic initiative. For example, in December 2015, a
handful of Australian companies, including Woolworths, Coles and Big W signed
a pledge to work together (and with suppliers) to eradicate modern slavery
identified in their supply chains. This is an example of a good initiative, yet thepact is limited to specific sectors, has minimal public accountability and naturally
relies upon companies opting in to the voluntary pact.
Voluntary initiatives need the support of regulation to keep up with thecontinued expansion of global supply chains.
These are important first steps. Building on these existing criminal laws andvoluntary initiatives, a Modern Slavery Act will provide a clear framework byrequiring all companies to tackle modern slavery in supply chains head on
and appointing an independent commissioner to lead the efforts in Australia.

Thai ‘trashfish’ workers unload trashfish
at Songkhla port, Thailand. (2014)
Photo credit, Chris Kelly
14

The Case for an Australian Modern Slavery Act

3.

ADDRESS THE
GOVERNANCE GAP

Modern slavery is a global phenomenon and demands
a global response.
The governance gap created by globalisation allows companies and their
suppliers to operate in some markets without any accountability for modern
slavery. Yet avoiding these markets is not the solution, as it fails to address
the problem. Creating sustainable supply chains can contribute positively
towards growth, improve competition, provide job opportunities and bringfamilies out of poverty. Rather what is needed to address the governance gap
is clear legislation.
Governments need to introduce laws that match (as a minimum) and whereappropriate, strengthen existing laws such as the UK Modern Slavery Act,
Californian Transparency in Supply Chains Act, and EU Directive for NonFinancial Reporting. Each of these laws, though sometimes consideredlight touch, require large organisations to report on steps taken to address
modern slavery within their organisation and supply chains. These laws havebeen driven forward by conservative and social democrat governments, butgarner support across all major political parties in the UK, US and EU. The
Government inquiry into whether Australia should adopt a “Modern Slavery
Act” (announced February 2017) is an important step forward.
An Australian Modern Slavery Act that matches, as a minimum, the existing
standards set out in the UK, EU and US is crucial. Australia is well placed to learn
from what works (and what doesn’t) from the precedent set internationallyand create a framework that is suitable for the Australian context. Ensuringconsistency with existing international efforts will be welcomed by global
companies to avoid competing and inconsistent regulations.

The Case for an Australian Modern Slavery Act

15

4.

CREATE A LEVELPLAYING FIELD

An Australian Modern Slavery Act is needed to level
the playing field.
Companies who take the initiative to investigate voluntarily should not be
unfairly prejudiced or otherwise suffer a competitive disadvantage because
they do the right thing. It will also level the playing field for those global
companies within Australia who are already regulated overseas to reporton modern slavery within their supply chains.
Laws introduced in the UK, US and EU have international reach and are holding
both local and foreign companies who do business inside their borders topublic account.
Almost 10% of the top 100 ASX listed companies are already filing modern
slavery statements under the UK Modern Slavery Act, including Qantas,
Wesfarmers and the Commonwealth Bank of Australia.11

Acting with integrity and respect for human rights
are drivers for our ongoing commitment to ensure
there is no slavery or human trafficking of any
form in our business activities or supply chain.”Commonwealth Bank of Australia –Modern Slavery Statement 2015/1612
In an age of heavy regulation for companies a knee jerk reaction is to view
any additional obligations as red tape or unnecessary paper work. Rather the
opposite is true. Global companies welcome the clarity around reporting andthe creation of a base minimum standard. CEOs are increasingly recognising
there is no value in competition on ethical standards or values, the real value
is in collaboration.

[The Modern Slavery Act, UK] has driven us tolook even further in our business, and we haveidentified things we need to do better. I’m saying
clearly, as a businessman, that piece of regulation
has been helpful. It has driven consistency in themarketplace.”
Marks and Spencers –Mike Barry, Sustainable Business Director13
The proposal for an Australian Modern Slavery Act includes the creation of acentral repository. This reflects feedback from certain companies and NGOs in
the UK who are pushing strongly for an officially approved UK central repository
to file modern slavery statements to improve transparency and accountability.14

16

The Case for an Australian Modern Slavery Act

5.

ENCOURAGE CHANGE
IN CORPORATEBEHAVIOUR

Legislation is an important tool that can shape and change
business behaviour.
Laws should encourage companies to take proportionate action tailored tothe industry and sectors within which the companies operate. Companies can
set the pace at which they respond, effectively encouraging a race to the top
to drive up standards.

 rotecting human rights around the world,P
wherever our product falls or work is done on
our product, is not an option; it is a business
imperative. Our customers demand it, our staff
demand it, and the board and I demand it…What
tends to shape business behaviour is customers,
shareholders and, of course, legislation.”
ASOS –
Nick Beighton, CEO15
Laws that ask companies to look for the most grievous cases of modern slavery
is an ascertainable target. Looking for modern slavery often is a “key” to unlock
investigation into other labour and human rights issues. When companies
look for modern slavery, they may inevitably find one or two instances, but
may undercover other issues – for example underpaid wages. Modern slavery
reforms may pave the way to broaden corporate culture to tackle a wider
range of human rights issues. An Australian Modern Slavery Act would be an
important first step, in the wider context of human rights accountability forbusinesses, to help CEOs walk before they run.
It is still early days, but initial analysis suggests laws such as the UK
Modern Slavery Act are working. A recent Ethical Trading Initiative and HultBusiness School research report described the UK Modern Slavery Act as a“game changer” for many companies.16 This report noted that following its
introduction, double the number of CEOs are actively involved in addressing
modern slavery. Many companies have reported improved communications
with suppliers and collaboration across sectors. More CEOs are treating
modern slavery as a business-critical issue. Nike recently reported that
addressing these sustainability issues are not only the morally right thing
to do, but that it actually benefits company operations.17

Sustainability moved from being a risk andreputation function, to a business lever function
to being an innovation function…This unlockedin the company a huge insight, which wassolving a sustainability problem can actuallyunlock new performance, new price or new
aesthetic benefits.”
Nike –
Beverly Jones, Chief Sustainability Officer18

The Case for an Australian Modern Slavery Act

17

6.

GROWING SUPPORTThere is growing support for an Australian “Modern Slavery
Act” from companies, NGOs and religious organisations.
On the UN International Day for the Abolition of Slavery (2 December 2016),
as part of the Australian Freedom Network, fifteen major Australian faithorganisations signed a declaration calling on the Australian Government to enact
legislation that reflects the world’s best practice in the fight to end modern
slavery, including the appointment of an Independent Anti-Slavery Commissioner.
In 2014, in a watershed moment and part of the Global Freedom Network,
faith leaders across the world, breaching cultural, religious and political divides,
signed the Joint Declaration of Religious Leaders Against Modern Slavery in
the Vatican City to pledge an end to modern slavery and human trafficking
by 2020. They were joined by leaders from many countries of the world,
representing the business, political and civil sectors.
Since this event, leaders have annually reaffirmed their commitment.
In 2015, the second signing of the Joint Declaration of Religious Leaders
Against Modern Slavery took place at Parliament House, Canberra. On thisoccasion, it was Australian faith leaders who were pledging to do all that they
could to take spiritual practical action to end slavery. In 2016, the third signingof the Joint Declaration of Religious Leaders Against Modern Slavery took
place at the India Habitat Centre, New Delhi, India. The Indian event was
followed by a roundtable discussion on ‘Eradication of bonded and forced
labour in India’.

The organisations listed below are
members of the Australian Freedom
Network who are campaigning to end
slavery in Australia. James Condon, of
the Salvation Army and Chair of the AFN,
on behalf of the AFN recently wrote toPrime Minister Turnbull on 2 December
2016 urging him to introduce a Modern
Slavery Act to strengthen transparency andaccountability in supply chains.

18

All […] forms of slavery are deemed reprehensible
in Islamic law and religious and human rights
institutions, authorities and organizations must all
work to abolish them and push countries to enact
laws and legislations that deter the deprivationof freedoms.”
Mohamed Ahmed El-Tayeb –Grand Imam of Al-Azhar19

The Case for an Australian Modern Slavery Act

NEXT STEPSNo one person or organisation can end modern slavery.
Globalisation has brought tangible benefits and positivechanges to many across the world. Technological advances
have connected the world unlike any other time in history.
Consumers are also more socially aware.
And still, slavery continues to persist. It is a complex
web of criminal behaviour, where sometimes thosecommitting the crimes have turned to cruel anddesperate measures to survive themselves.
We cannot be complacent.
Politicians must drive standards higher andintroduce new laws. CEOs must proactively address
the risk of modern slavery. Procurement managers
must seek better relationships with suppliers anddrive up standards of transparency. Religious leaders
must mobilise efforts and collaborate to ensure thefreedom of every person is protected. Consumers
must use their buying power to demand greater
accountability and transparency from companies.
Introducing an Australian Modern Slavery Act is a
powerful message to all Australians, companies that
do business in Australia and to our neighbouring
regions that we shall not stand by and ignore themillions subjected to modern slavery.
It’s time now to act, to legislate and towork together to end modern slavery.

A worker inside a textile factory in
Dhaka, Bangladesh producing jeans.
Around 4 million people, mainly
women, work in the garment industry
in Bangladesh, the second largest in
the world. The industry is worth around
GBP12.5 billion a year. Workers often are
significantly underpaid and forced towork in extremely difficult conditions.
Photo credit, GMB Akash
The Case for an Australian Modern Slavery Act

19

ENDNOTES ormer President Barack Obama, “Remarks by theF
President to the Clinton Global Initiative” Speech, Sheraton
New York Hotel and Towers, New York, 25 September 2012,
accessed 23/2/2017: https://obamawhitehouse.archives.
gov/the-press-office/2012/09/25/remarks-presidentclinton-global-initiative

1

2

3

	Pope Francis, “Address of his Holiness Pope Francis”
Speech, Ceremony for the Signing of the Faith Leaders’
Universal Declaration Against Slavery, Casina Pio IV, 2
December 2014, accessed 23/2/2017: https://w2.vatican.
va/content/francesco/en/speeches/2014/december/documents/papa-francesco_20141202_dichiarazioneschiavitu.html

11	Data extracted from the UK Modern Slavery Act &Registry, Business and Human Rights Online, accessed
10/2/2017: https://business-humanrights.org/en/ukmodern-slavery-act-registry.

12	Commonwealth Bank of Australia, “Slavery and
Human Trafficking Statement”, signed by David Turner,
Chairman, for year 2015/16, accessed 3/2/17: http://www.
commbank.com.au/content/dam/commbank/assets/
about/opportunity-initiatives/Slavery-and-HumanTrafficking-Statement.pdf

13	Sustainable Business Director Marks and Spencers,
Mike Barry, Oral Evidence – Joint committee on Human
Rights and Business, HC 443, 25 January 2017, accessed
16/2/2017: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/humanrights-committee/human-rights-and-business/oral/46228.html

14	Oral Evidence – Joint committee on Human Rights
and Business, HC 443, 25 January 2017, accessed
16/2/2017: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/humanrights-committee/human-rights-and-business/oral/46228.html

15	CEO ASOS, Nick Beighton, Oral Evidence – Joint
committee on Human Rights and Business, HC 443,
25 January 2017, accessed 16/2/2017: http://data.
parliament.uk/writtenevidence/committeeevidence.svc/
evidencedocument/human-rights-committee/humanrights-and-business/oral/46228.html

16	Ethical Trading Initiative and Hult International Business
School, “Corporate Leadership on Modern Slavery”,
27 October 2016, accessed 2/3/2017: http://www.
ethicaltrade.org/blog/new-report-and-survey-findsmodern-slavery-act-galvanising-leadership-action-inprogressive17	Kate Abnett, “Just Fix It: How Nike Learned to Embrace
Sustainability”, Business of Fashion, November 1, 2016,
accessed 23/2/2017: http://www.businessoffashion.com/
articles/people/just-fix-it-hannah-jones-nike	End Slavery, the Salvation Army, Sandra’s Story,
Trafficking and Slavery Safe House, accessed: 3/2/107
endslavery.salvos.org.au/get-help/the-safe-house-fortrafficking-slavery/4

 FJ, Thailand’s Seafood Slaves, Human Trafficking,E
Slavery and Murder in Kantang’s Fishing Industry, 2015,
accessed 3/2/2017: ejfoundation.org/sites/default/files/
public/EJF-Thailand-Seafood-Slaves-low-res.pdf

5	Verite, “The Nexus of Illegal Gold Mining and Human
Trafficking in Global Supply Chains – Lessons from Latin
America”, July 2016, accessed 9/2/2017: https://www.
verite.org/wp-content/uploads/2016/11/Verite-ReportIllegal_Gold_Mining-2.pdf

6International Labour Organisation, “Report IV: Decent
Work in Global Supply Chains”, Paper presented at theInternational Labour Conference, 105th Session, 20167

 rime Minister of the UK, Theresa May (then Rt. Hon
P
Theresa May, MP Home Secretary), “Home Secretary
Foreword”, Transparency in Supply Chains etc. A
Practical Guide, accessed 23/2/2017: https://www.gov.
uk/government/uploads/system/uploads/attachment_
data/file/471996/Transparency_in_Supply_Chains_
etc__A_practical_guide__final_.pdf
 on Julia Gillard, Former Prime Minister of Australia
H(Period of Service 24/06/2010 to 27/06/2013),
Speech at the International Women’s Day Breakfast,
Sydney Convention and Exhibition Centre, accessed
23/2/2017: http://pmtranscripts.pmc.gov.au/taxonomy/
term/4?page=29

89 ata extracted from the UK Modern Slavery Act &D
Registry, Business and Human Rights Online, accessed
10/2/2017: https://business-humanrights.org/en/ukmodern-slavery-act-registry.

10	Former US Secretary of State John F. Kerry, US
Department, Trafficking in Persons Report, July 2015 –accessed 3/2/2017: http://www.state.gov/documents/organization/245365.pdf

20

The Case for an Australian Modern Slavery Act

18
19

As above.
	Mohamed Ahmed El-Tayeb, Grand Imam of Al-Azhar,“Ceremony for the Signing of the Joint Declaration of
Religious Leaders Against Slavery” Speech, Casina Pio
IV, 2 December 2014, accessed 23/2/2017: http://www.
globalfreedomnetwork.org/grandimam2014/

RESOURCES

walkfreefoundation.org

THE GLOBAL SLAVERY INDEX 2014

TACKLING
MODERNSLAVERY
IN SUPPLYCHAINSA GUIDE 1.0

With input from:

WWW.GLOBALSLAVERYINDEX.ORG

1

CONTACTS
Walk Free Foundation
PO Box 3155, Broadway Nedlands
Western Australia 6009
Phone: +61 8 6460 4949
Email: info@walkfreefoundation.org
facebook.com.au/walkfreefoundation
twitter.com/WalkFreeFdn

globalslaveryindex.org

globalfreedomnetwork.org

Walk Free Foundation has
several publications andresources which can beaccessed and downloaded
from our websites. For
further information pleasecontact the Walk Free
Foundation team.

Slave labour children peer from behinda textile loom where they work in Uttar
Pradesh, India. The photographer was
taken to this village by a local anti-slaveryorganisation. This village had many
children working on looms in several
mud hut homes. This picture was taken
while the loom owner was sleeping off
a hangover in a cot nearby. The children
worked in horrible conditions, sitting in
dirt pits for 14 hours a day, sometimes
without food and water, in stifling heat.
Their fingers were deformed, their spinesand eye sight damaged. Most carpets
were made for foreign export (2003).
Photo credit, Jodi Cobb
The Case for an Australian Modern Slavery Act

21

YOU MAY CHOOSE TO LOOK THE OTHER WAY
BUT YOU CAN NEVER SAY AGAIN THAT YOU DID NOT KNOWWILLIAM WILBERFORCEWALKFREEFOUNDATION.ORG