Forced Labour
Background
Forced labour is one of the most pressing workers’ rights challenge of our time.
Over 12.3 million workers are forced to work in conditions that contradict decent work for all.
Economic globalization has created a downward pressure on employment conditions and wages. When added to high levels of labour migration, these conditions have raised the vulnerability of workers to exploitative practices like forced labour.
The International Labour Organisation (ILO) suggests that forced labour is a truly global problem that affects a variety of sectors. Women, migrants, children, ethnic minorities and the poor may be at greater risk of being forced to work.
Investor Risks
Besides threatening a company’s profitability and reputation, investments tied to forced labour face political and legal risks.
For example, there are documented cases that suggest the Burmese junta consistently violates human rights and employs forced labour. Pro-democracy leaders have warned that when the junta finally falls, companies that supported the regime are likely to face expropriation without compensation. Workers retirement savings that are invested in companies like Chevron or Total, which are key partners in the Burmese oil and gas sector are at risk, given this political situation.
Likewise, forced labour is a criminal offence. Litigation against companies accused of using forced labour could be lengthy, costly and in some cases, even halt investment projects.
Investors of workers’ capital have to be mindful that regulatory shifts in this area are expected. For example, there are calls for the UK government to introduce legislation that will enable overseas workers forced to work for UK companies to seek legal redress in the UK.
In addition, embarrassing exposes of forced labour in the media, public campaigns and boycotts can affect a company’s share price, brand value and operational performance.
Briefings and Reports
Read the CWC's briefing paper Investing in Decent Work: The case for investor action on forced labour. The paper highlights shareholder action to combat forced labour in the steel, cotton and cocoa sectors. It also provides further recommendations for engaging companies on forced labour.
The CWC released a follow-up briefing paper Investing in Decent Work: Case studies of investor action on forced labour in February 2011. The paper provides information on previous investor initiatives to investors and trustees wishing to engage companies on forced labour.
Resources
- ITUC-led Global Trade Union Alliance to Combat Forced Labour and Trafficking http://www.ituc-csi.org/forcedlabour
- ILO Special Action Programme on Forced Labour http://www.ilo.org/sapfl/lang--en/index.htm
- Anti-Slavery International http://www.antislavery.org/english/
- As You Sow, Slave Labour Program http://www.asyousow.org/human_rights/labor_slave.shtml
- Verite Well Made Campaign http://www.verite.org/WellMade/
- ITUC's Annual Survey of violations of trade union rights (English, French, Spanish)
Updates
On the occasion of World Day for Decent Work (October 7) the CWC is hosting an awareness raising event for trade union pension trustees, trade union delegates and responsible investment professionals on the investment risks posed by investing in companies that employ forced labour.
Work is underway to develop a second briefing paper on case-studies of investor action to combat forced labour. The publication will be circulated to working group members for feedback in mid-October.
The CWC’s briefing paper Investing in Decent Work: A case for investor action on forced labour has been very well-received by trade unions, members of the investment community and civil society. The report was highlighted in the following outlets:
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Social Funds
- August 9th posting On Change.org from Tim Newman (ILRF)
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Business and Human Rights Clearinghouse
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Responsible Investor