From International Supply Chains to Local Consumption: Eliminating Labor Trafficking from all Companies in Washington State Presented by the Jackson School of International Studies University of Washington Task Force 2015 1 Instructors: Dr. Sutapa Basu & Ms. Bratati Ghosh Executive Committee: Ana Alice Block - Lead Coordinator Emma Vielbig - Assistant Coordinator/Lead Poster Amela Zukic - Editor Helena Koval - Editor Researchers Zara Pollack Sydney Victor Irene Situ Margaret Montgomery Westley Rachko Kate Burns Akhmed Shukurov Mengwei Cindy Zhang Lissan Tibebe Alison Forsyth Rocío Nureña Sarah Priddy 2 TABLE OF CONTENTS FOREWORD ................................................................................................................................................... 5 EXECUTIVE SUMMARY ............................................................................................................................. 6 ACKNOWLEDGMENTS ............................................................................................................................. 10 INTRODUCTION ......................................................................................................................................... 11 CHAPTER 1: WASHINGTON STATE UNDER THE MICROSCOPE: UNDERSTANDING HUMAN AND LABOR TRAFFICKING THROUGH HISTORY, GLOBALIZATION, AND ECONOMICS ...... 15 SECTION 1: HISTORICALLY ANALYZING AND DEFINING HUMAN AND LABOR TRAFFICKING ..................... 16 SECTION 2: SCALE OF ISSUE: GLOBALIZATION, INEQUALITY, AND DEMAND & SUPPLY NEXUS ................ 25 SECTION 3: A GLOBALIZED VIEW ON THE ISSUE OF LABOR TRAFFICKING AND THE VULNERABILITY OF ITS VICTIMS .......................................................................................................................................... 36 CHAPTER 2: THE WIDER SCOPE: THE DIVERSE EMBODIMENTS OF LABOR TRAFFICKING AND THE RESULTING SOCIETAL AND ECONOMIC COSTS ............................................................. 49 SECTION 1: EXAMINING BOTH BLATANT AND DISGUISED INSTANCES OF LABOR TRAFFICKING ................. 50 SECTION 2: COMMONALITIES IN VICTIMIZATION AND OPPORTUNITIES TO IDENTIFY AND AID .................. 60 VICTIM SECTION 3: OVERALL COSTS TO VICTIMIZED INDIVIDUALS AND HOST SOCIETIES .................................... 67 CHAPTER 3: LEGISLATION AND LAWS: CREATING COMPREHENSIVE ANTI-LABOR TRAFFICKING LAWS ................................................................................................................................ 79 SECTION 1: A LOOK AT THE HISTORY OF LABOR TRAFFICKING LAWS, AS WELL AS NATIONAL AND INTERNATIONAL CLEAN SUPPLY CHAIN POLICIES ..................................................................................... 80 SECTION 2: CHALLENGES: THE DIFFICULTY OF ADDRESSING THE ISSUE OF LABOR TRAFFICKING ........... 99 CHAPTER 4: SUPPLY CHAIN OF BUSINESSES WITHIN WASHINGTON STATE: VULNERABILITIES, COSTS OF LABOR TRAFFICKING, AND CLEAN SUPPLY CHAINS ........... 128 SECTION 1: LABOR TRAFFICKING THROUGHOUT THE SUPPLY CHAIN ...................................................... 130 SECTION 2: INDUSTRY LEADERS’ EFFORTS TO COMBAT LABOR TRAFFICKING ................................................................................................................................................................. 153 SECTION 3: THE REAL COST OF CLEAN SUPPLY CHAINS ......................................................................... 165 CHAPTER 5: PUBLIC AWARENESS IN LABOR TRAFFICKING: EXAMINING THE ROLE OF THE INDIVIDUAL IN FACILITATING CHANGE, AND THE MEANS BY WHICH AWARENESS IS SPREAD TO THE PEOPLE. .................................................................................................................. 184 SECTION 1: PEOPLE, A CATALYST FOR CHANGE: HISTORICAL EXAMPLES OF THE POWER OF THE PEOPLE IN ENACTING SOCIAL AND LEGAL CHANGES ................................................................. 186 SECTION 2: WAYS TO SPREAD AWARENESS AND VICTIM AWARENESS .................................................... 202 3 CHAPTER 6: THE INTERSECTION OF CORPORATE AND STATE RESPONSIBILITY: DEVELOPING AN EFFECTIVE MONITORING APPROACH FOR LABOR TRAFFICKING IN WASHINGTON STATE SUPPLY CHAINS ............................................................................................. 218 SECTION 1: MONITORING LABOR TRAFFICKING DOWN SUPPLY CHAINS: CASE STUDIES OF EXISTING CORPORATE MODELS ................................................................................................................................................... 219 SECTION 2: EFFECTIVE MONITORING AGENCIES: SYSTEMS OF ACCOUNTABILITY ON MULTILATERAL LEVELS ......................................................................................................................... 242 CONCLUSION ............................................................................................................................................ 270 POLICY RECOMMENDATIONS ............................................................................................................. 271 WORKS CITED ......................................................................................................................................... 277 4 Foreword We are delighted to have had this opportunity to lead this amazing group of students in the “From International Supply Chains to Local Consumption: Eliminating Labor Trafficking from all Companies in Washington State” Task Force. For both of us, labor trafficking is an issue we deeply care about, and we are committed to ending these global oppressive practices. We are humbled by the students who stepped up to the challenge of learning about this issue, researching all aspects of it thoroughly, and coming up with policy recommendations and awareness generation strategies in the last three months. This has been a wonderful forum for us to examine this issue in an in-depth and inclusive way. We will not rest until we eradicate this form of global injustice against human beings. Dr. Sutapa Basu & Ms. Bratati Ghosh Seattle, March 2015 5 Executive Summary Recent estimates suggest that there are 21 million people who are victims of human trafficking, forced labor, and slavery around the world. Of those 21 million, private individuals or enterprises exploit 19 million victims; the other 2 million are exploited by the state and rebel groups. These statistics depict the magnitude of human trafficking occurring in our world today, and show that in most instances the perpetrators are not governments, but rather outside market forces. There is a tendency to associate human trafficking most often with sexual exploitation, and while there are 4.5 million victims of sex trafficking, it does not even begin to explain the other 16.5 million victims. Most victims of human trafficking are actually victims of labor trafficking, that is, victims of exploitative working conditions. However, we must not forget that sex trafficking and labor trafficking are not mutually exclusive, but that in most cases they overlap. According to the International Labor Organization (ILO) the sectors prone to engage in labor trafficking include the domestic work industry, agriculture, construction, manufacturing and entertainment. Through these various sectors, over $150 billion U.S. dollars are generated around the world in illegal profits annually. These large sums are attainable through the exploitation of human beings, many of whom are exposed to slave-like working conditions; their human rights are completely violated. The victims of labor trafficking receive little or no pay for their work and service, which allows businesses to amass large profits. Selling the products and services to consumers generates these illegal profits. Most consumers have no idea that their products and services are part of a greater industry: that of labor trafficking. The issue of labor 6 trafficking, however, is not specific to any one region of the world, but can be found everywhere, including in our backyard. Washington State is a hotspot for labor trafficking due to its particular placement on the U.S. map and its diverse business landscape. The fact of the matter is, trafficked victims are being brought through our ports and are used in various sectors in our state, including agriculture, domestic servitude, hospitality, manufacturing, retail, and construction. The general public is unaware of this large-scale issue because Washington State is seen as a very progressive state and a leader in human trafficking legislation. We must make sure to uphold our positive image on the state, national, and global level by being the frontrunners in ending labor trafficking practices in Washington State and in the global supply chains of Washington State businesses. By taking this global issue of labor trafficking and bringing it back home to Washington State, our Task Force seeks to answer the following questions in order to end this inhumane practice: • What policies and government interventions can be put in place here in Washington State to ensure more transparent supply chains in Washington State businesses? • How can awareness be raised on the issue? • How can a strategic plan be developed to eliminate labor trafficking from all supply chains in Washington State businesses? Our aim for this report is that it will lead to the creation of legislation for Washington State to combat labor trafficking practices exhibited in companies’ supply chains doing business 7 in the State. For the purposes of this report, we have