Overview of ETI Subtitle here

Modern Slavery What is it? What does it mean for you? About ETI Modern Slavery definitions Legislation – requirements What do you need to do? Making the case, convincing others Questions / Comments

ETI ethicaltrade.org

The ETI Base Code Forced labour Child labour Health & safety Agreed hours Living Wages No discrimination Security Freedom of association ETI ethicaltrade.org

The Global Context Millions of people around the world endure inadequate, sometimes shocking, conditions at work Some 370 million workers support their families on less than $1.25 a day. Around 830 million workers support their families on less than US$2 a day There are at least 21 million people in forced labour There are an estimated 168 million child labourers ETI ethicaltrade.org

The Global Context … Every day, more than 6,000 people die as a result of occupational accidents or work-related diseases. This is more than 2.3 million deaths per year Complex supply chains, complex labour markets More vulnerable workers – desperate for jobs (at any cost) subject to exploitation & abuse (migrant workers; women, children, marginalised groups) ETI ethicaltrade.org

Modern Slavery – what is it? Modern Slavery Forced labour Human trafficking Key indicators ETI ethicaltrade.org

UK Legislation: The Modern Slavery Act Modern Slavery Act – royal assent March 2015; came into force July 31 st 2015 New offences, penalties, Anti Slavery Commissioner, victim support & protection Section 54 of the Modern Slavery Act 2015 will require commercial organisations to prepare a slavery and human trafficking statement for each financial year. ETI ethicaltrade.org

Legislation Requirements Annual gross revenues of £36 million per year Companies that carry on a business, or part of a business, in the UK, supplying goods and services Approval at the highest level Publish statement on home page of website Comes into force October 2015 Statutory Guidance soon ETI ethicaltrade.org

Statement - what should be included? Company structure, business and supply chains Policies in relation to slavery and human trafficking Due diligence processes in relation to slavery and human trafficking in its business and supply chains – in UK & overseas Steps taken to assess, manage & mitigate risk of modern slavery the parts of its business and supply chains ETI ethicaltrade.org

Requirements & consequences ETI ethicaltrade.org Statement can state that the organisation has taken no such steps But… subject to scrutiny by Anti-Slavery Commissioner, NGOs, trade unions Central repository Risk to reputation and commercial success

What should purchasers do? Understand your value chain – raw materials to recycling; assess the risk of modern slavery Understand regional, national & local labour market context; high risk sectors ‘Salient risk’ concept Consolidate your business partners – the more suppliers, the greater the risk Collect data on employment practices at supplier factories, track key indicators for signs of F.L. ETI ethicaltrade.org

What should purchasers do? Assess risks – temporary workers, contract status Check labour recruitment – labour brokers; have workers paid for their job? Are labour brokers licensed (all the way along the chain) Check suppliers have effective HR systems (recruitment, contracts, hours, pay, grievance) Do suppliers have mechanisms to engage with workers? Trade union / representative worker committee? ETI ethicaltrade.org

What should purchasers do? Engage with stakeholders – other companies, NGOs, trade unions, government agencies, academics – insight, intelligence, advice Collaborate!!! You cannot do this alone ETI ethicaltrade.org

Next steps… Talk to people – within organisation & outside Review systems, map your supply chain Bring in expertise & get advice Build allies Make the case… change is needed! ETI ethicaltrade.org

The Business Case for Ethical Trade Companies with greater visibility & control of their supply chains are better run, more likely to be competitive and successful Workers treated with respect - more motivated and more productive; less absenteeism & turnover - avoids disruption and financial cost to business Open communication; grievance mechanisms and pay negotiation processes benefit workers and reduce the likelihood of wage disputes and industrial action – predictable and more secure supply chain ETI ethicaltrade.org

Where can I get more information? Ethical Trading Initiative: Ethical Trading Initiative 8 Coldbath Square London EC1R 5HL UKT +44 (0)