Honourable Patty Hajdu
Minister of International Trade
House of Commons
Ottawa, ON K1A 0A6
Mandatory corporate due diligence is essential to addressing forced labour in our supply chains
Dear Minister Hajdu,
Over the last few months, we have seen several countries introduce forced labour import bans. While this is no doubt in part a response to U.S. trade pressures, it is also a welcome recognition of the widespread issue of forced labour throughout global supply chains, something civil society groups around the world have been working to address for years. A greater number of countries adopting and effectively implementing forced labour import bans reduces the global market for forced labour-made goods.
We are writing to emphasize the importance of enacting measures requiring companies to conduct effective due diligence to protect the rights of workers and communities and tackle forced labour through a more rigorous and comprehensive approach.
As you know, in Canada, efforts to improve enforcement of our existing forced labour import ban were introduced in June, and many groups participated in the August government consultations on important regulatory questions related to the implementation of Bill C-35, An Act respecting the prohibition of the importation of goods produced by forced labour, should it pass. The impact of improved measures will lie in the details, but we are hopeful that an effective approach to enforcement remains on the table.
However, import bans alone can only do so much. To more fully protect workers’ and communities’ rights against corporate harm, prevent abuse from occurring in the first place, and ensure that workers can obtain adequate remedy, a package of corporate accountability tools is needed. A key piece of this package is corporate due diligence legislation that protects rightsholders.
In Canada, the consultation on Bill C-35 was announced in tandem with a consultation on potential due diligence and civil liability measures to fight labour exploitation in supply chains. We are pleased to see this is included in the government’s thinking on its anti-forced labour regime. Unlike import ban improvements, however, there is currently no law or legislative proposal for corporate due diligence.
Below we list several reasons why a corporate due diligence law is essential to meaningfully addressing forced labour in our supply chains.
- Encompassing a broader set of rights
Forced labour can be difficult to identify because of the risks to workers for speaking out, efforts of employers to hide abuse, and the unreliability of social audits. But forced labour does not exist in a vacuum. Where there is forced labour, we also find abuse of other labour rights and human rights. When companies are required to conduct due diligence for a broader set of rights, it is more likely that some of the most egregious human rights abuses, such as forced labour, can be identified and addressed, or even prevented.
Communities can also be impacted by corporate activity, even if the majority do not work for the company, for example by environmental contamination. It is essential that communities be protected from corporate abuse and can seek recourse when abuse occurs.
- Prevention
Proactive efforts to conduct corporate due diligence for a broad set of rights throughout supply chains can prevent forced labour and other rights violations before they occur. Imports should be banned only when efforts to end forced labour through due diligence measures have been exhausted. This is because it is better for workers and companies when working conditions are adequately improved and work can continue, rather than ending business relationships prematurely. Import bans that do not also consider due diligence risk undermining unions and workers’ rights groups who may be in the process of negotiating decent working conditions.
This does not necessarily apply in cases of state-imposed forced labour which severely limits the ability of companies to prevent, improve and remedy abusive working conditions. In these cases, cutting off demand for forced labour-made goods through an import ban is likely a reasonable immediate action.
- Remedy
Import bans block goods after the harm has already occurred. A due diligence law can incorporate remedy for victims of abuse, requiring companies to not only ensure that the abuse has stopped, but also that victims have been compensated for the abuse they have endured. Remediation processes are essential for ensuring justice and should be worker-led rather than determined solely by the companies involved.
Canada has an opportunity to become a global leader in the fight against forced labour by adopting legislation to improve our forced labour import ban and enacting strong worker-centred due diligence legislation, together. We urge the government to take this approach, and to move swiftly to move these measures forward.
Sincerely,
Karen Hamilton, Director
Above Ground, a project of MakeWay