Protecting Workers’ Rights Worldwide ADDRESSING RISKS OF FORCED LABOR IN SUPPLY CHAINS: Protecting Workers from Unfair Restrictions on their Freedoms at Work ith increasing attention to forced labor, of movement at work, must not be bound trafficking, and modern slavery issues to their jobs by debt, and may not be forced W throughout supply chains, including new to work overtime involuntarily. Companies laws and regulations,1 FLA-affiliated companies assessing entire supply chains against these continue to exercise their long-standing standards — and working to remediate the commitment to protecting workers from such violations they find — are well adapted to violations in their manufacturing facilities, an evolving global environment in which even as the most proactive companies also governments, consumers, and civil society, are investigate how to enforce this commitment at raising increasing concerns about companies’ deeper levels of the supply chain. connections to human trafficking and modern slavery. FLA standards on forced labor — incorporated into the FLA program since its inception in For example, in April of 2017, the advocacy 1999 — detail more than a dozen indicators for organization Know the Chain3 evaluated companies evaluating whether their suppliers companies in three industry sectors — or producers are upholding their human rights apparel and footwear, food and beverage, commitments, and can be useful at any supply chain level.2 This brief will focus on best practices for identifying and eradicating forced labor at Code Element: the supplier level. It will explain the indicators Forced Labor of forced labor as incorporated into the FLA There shall be no use of forced code, provide examples of risks and violations labor, including prison labor, reported by the FLA’s on-the-ground indentured labor, bonded labor or assessors, and offer recommendations of other forms of forced labor. proactive and cooperative steps that brands can take to ensure suppliers do not engage in or tolerate trafficking and forced labor. 1 In recent years, the US, UK, and other countries have amended or Beyond the basic requirement that “workers passed regulations requiring greater transparency by companies of the shall have the right to enter into and to forced labor risks in their supply chains and disclosure of their efforts to combat these risks. See http://www.fairlabor.org/sites/default/files/im- terminate their employment freely,” and the ages/supply_chain_traceability_and_transparency_june_2017.pdf clear prohibitions on “prison labor [and] 2 Find the complete FLA Workplace Code of Conduct and all compli- ance benchmarks at http://www.fairlabor.org/our-work/labor-standards. bonded labor,” FLA standards also require 3 https://knowthechain.org/fored-labor-action-compared-findings-from- that workers must have reasonable freedom three-sectors/ www.fairlabor.org 1 ADDRESSING RISKS OF FORCED LABOR IN SUPPLY CHAINS Employers shall not require workers to work more than the regular and overtime hours allowed by the law of the country where the workers are employed. The regular work week shall not exceed 48 hours. Employers shall allow workers at least 24 consecutive hours of rest in every seven-day period. All overtime work Code Element: shall be consensual. Employers shall not request overtime on a regular basis and shall compensate all overtime work at a premium rate. Other than in exceptional Hours of Work circumstances the sum of regular and overtime hours shall not exceed 60 hours. and communications technology — publicly to worry about being able to return home reporting on the extent of their efforts to freely because an employer is withholding a eradicate forced labor. And the Interfaith passport, other important legal documents, Center on Corporate Responsibility (ICCR) or workers’ wages. And no worker should has maintained a “No Fees” Initiative in recent have to risk termination because they are years, encouraging companies across many unable to work involuntary overtime or choose industries to pledge that they will forbid not to. Below we explain some of the most workers to be charged recruitment fees in common forced labor findings reported by their supply chains, to prevent the risk of FLA assessors in recent years as part of our bonded labor.4 effort to increase awareness of forced labor indicators, and to remind our affiliates of The FLA and our affiliates believe no worker their commitments and obligations on this should be unable to leave a job at will because important issue: of the burden of a heavy recruitment debt to an employer. No migrant worker should have 4 http://www.iccr.org/no-fees-initiative 1. Mandatory Overtime: BENCHMARKS The FLA Code requires that all overtime be consensual and voluntary, with no punitive consequences for workers who refuse Forced Labor, 8 – overtime, “including for overtime mandated to meet exceptional The imposition of circumstances.” In recent years, FLA assessors have found overtime where workers violations of this standard in factories in China, Jordan, Vietnam, are unable to leave the work premises Turkey, and the U.S. In these cases, brands should require that constitutes forced labor. suppliers remove any mandatory overtime requirements written into to the factory’s policies and procedures, and ensure that Hours of Work, 8.5 – workers and managers are trained on the principle that workers Employers shall enact a voluntary overtime must not be compelled to work involuntary overtime. Brands system, including for should also be aware that mandatory overtime is often linked overtime mandated to further violations, such as failure to provide workers with one to meet exceptional rest day in every seven, violations of legal limits on working hours circumstances. for young workers and pregnant women, or workers not being compensated for their work at premium overtime rates. www.fairlabor.org 2 ADDRESSING RISKS OF FORCED LABOR IN SUPPLY CHAINS In some cases, the presence of a mandatory planning for a production schedule of 50 to overtime policy may indicate a more systemic 55 hours (or more) per week for workers. In problem with a factory’s production planning addition to adjustments at the factory level, and hours of work management. For example, such violations may also require brands in some factories where assessors have to collaborate with suppliers to achieve a found workers threatened with termination working environment that meets our agreed if they refuse to work overtime, they have upon standards for hours-of-work and fair also found factory management regularly compensation. 2. Production Targets Too High: BENCHMARKS FLA standards prohibit employers from setting piece-rate production Forced Labor, 7.5 – need to work beyond targets so high that employees must Employers shall not utilize regular working hours work overtime to earn the equivalent practices that restrict as set under the FLA of the legal minimum wage. For workers’ freedom of Workplace Code, movement … [such as] excluding overtime, in example, one FLA assessment in setting production targets order to make at least Haiti found that a factory’s piece- or piece rates at such a the minimum wage or rate was set so high that workers level that workers need the prevailing industry took 9.5 hours to sew enough to work beyond regular wage, whichever is working hours (excluding higher. garments to earn an amount equal overtime) as set under the to eight hours compensated at FLA Workplace Code in Compensation, 7.3 – the local minimum wage. While order to make the legal Employers shall not piece-rate workers may choose to minimum wage or the set production targets, work voluntary overtime hours to prevailing industry wage. piecework, or any other incentive or increase their pay, adherence to Employment production system at FLA standards requires adjusting Relationship, 24 – such a level that the piece rates and production targets Employers shall not set payment for overtime so that workers putting in a regular production targets, piece work performed is less rates or any other incentive than the premium pay workweek, without overtime, can or production system at required by law or the earn wages that can meet their such a level that workers FLA Workplace Code. basic needs and provide some discretionary income. 3. Recruitment Fees and Wage Advances: When an employer or recruitment agency money to pay these costs upfront may be imposes recruitment fees or deposit provided with a loan by a labor contractor or requirements, a worker without enough a wage advance by a factory. Such workers www.fairlabor.org 3 ADDRESSING RISKS OF FORCED LABOR IN SUPPLY CHAINS BENCHMARKS risk being unable to freely leave their job until all debts are paid — an employment situation tantamount to bonded labor. Forced Labor, 7.2, 7.3, 7.4 – For this reason, the FLA code requires that workers never be Employers shall not utilize practices required to pay for their job. They must not be required to that restrict workers’ freedom of movement or ability to terminate pay recruitment costs or fees imposed by labor contractors, his or her employment, [such as] employment agencies, or any other entity. If suppliers choose ... requiring deposits, imposing to follow a hiring process that results in recruitment fees — or financial penalties, [or] requiring in cases of unavoidable recruitment costs, such as when pre- recruitment fees. employment health examinations are required by law — the Employment Relationship, employers themselves must bear these costs. 5.3 – Employers shall not use employment agencies that rely Through assessments of factories and farms around the on practices such as requiring workers to pay recruitment and/or world, the FLA has found that migrant worker populations are employment fees. especially vulnerable to recruitment debt that binds them to their jobs. We have found migrant workers who are in debt to Employment Relationship, their employers or recruiters during agricultural assessments 6.2 – Fees associated with the employment of workers shall be the in Turkey, in both agricultural and factory assessments in sole responsibility of employers.