Modern Australian
The Times

Australia's modern slavery law is woefully inadequate – this is how we can hold companies accountable

  • Written by Kyla Raby, PhD candidate researching the role of consumers in eradicating modern slavery in supply chains, University of South Australia
Australia's modern slavery law is woefully inadequate – this is how we can hold companies accountable

A highly anticipated independent review of Australia’s Modern Slavery Act has found it has not brought “meaningful change” to the lives of people living in conditions of modern slavery since its passage more than four years ago.

The final report makes 30 recommendations which, if implemented, would mean thousands more businesses need to take stronger action to prevent the goods and services they sell being made with slavery.

These findings come at a time when new global research on the prevalence of modern slavery reflects the rapidly growing nature of the issue. It is estimated that, on any given day in 2021, almost 50 million people worldwide were victims of modern slavery. This is an increase of 10 million people from research conducted in 2016.

Despite its name, Australia’s Modern Slavery Act doesn’t address the diverse forms of exploitation that can constitute modern slavery. Instead, it aims to combat labour exploitation in the private economy.

It does so by requiring companies and other entities with annual revenues greater than A$100 million to identify how slave labour may be present in their global operations and supply chains. Companies are also required to report on actions taken to ensure they are slavery-free.

According to current government advice, modern slavery is now so prevalent, there is a “high risk” it may be present in these companies’ operations and supply chains.

However, of the more than 3,000 companies required to report, the review found only a handful have identified incidents of modern slavery. None of these were in Australia. And very few companies have taken steps to remedy the harm caused by slavery when it has occurred or given workers specific protections.

These findings are no surprise to those who have been following the implementation of the Modern Slavery Act, which came into force in January 2019.

Several evaluations of corporate reporting since then have all reached similar conclusions about the weakness of the law.

Just last month, a coalition of human rights organisations and academics published research on the impact of the act involving nearly 90 business groups. It found that, in the best case, it “is generating widespread awareness, but in the worst case, it provides a shiny veneer for a business model that contributes to modern slavery”.

Stronger penalties and greater oversight

The review tabled in parliament last week attempts to remedy the act’s shortcomings. It recommends requiring companies to implement a due diligence system to address the modern slavery risk in their direct operations and supply chains.

This would make it unacceptable for businesses to simply say they are doing something. Instead they would be required to “walk the talk”.

Since its inception, the act has been criticised for not including penalties for companies that fail to comply, as well as any mechanism for independent oversight. This has left consumers and investors with the responsibility of holding companies to account.

Read more: Australia's world-first repository of 'modern slavery statements' a step in the right direction

The review found it is time for these oversights to be addressed. It recommends introducing offences for companies that either fail to report or report false information, as well as an offence for not having an appropriate due diligence system in place.

It also makes several recommendations as to what role a future Commonwealth anti-slavery commissioner could play in overseeing and enforcing compliance with the act. Such a position was introduced last year in New South Wales through a state-based Modern Slavery Act.

The view of the Albanese government on such changes is already known. Labor went into last year’s federal election with a promise to amend the Modern Slavery Act to impose penalties for non-compliance and to appoint an independent anti-slavery commissioner. In this month’s budget, the government allocated A$8 million to establish a commissioner.

The review also suggests enabling the Australian public and civil society to play a greater oversight role by establishing procedures for people to submit complaints about the reporting done by companies under the Modern Slavery Act.

Given complaints from NGOs have been filed against companies like Ikea and Amazon under similar laws in Germany, such a change may be an important step towards real corporate accountability.

Addressing the drivers of modern slavery

Although the government’s response to the review won’t be known for some time, it’s clear change is coming.

Our country is at a pivotal point in how we address the sourcing, producing and consuming of goods and services made with exploited labour. To have a chance of reversing, or even just slowing, the proliferation of modern slavery, actions that go well beyond the review’s recommendations are needed.

The review acknowledges that even a stronger, more effective, corporate reporting mechanism alone cannot effectively tackle an issue as complex as modern slavery. And it reiterates the widely held view that the Modern Slavery Act has not addressed any of the drivers of modern slavery such as “poverty, gender inequality, exploitative business practices, weak governance and regulatory inadequacy”.

Truly combating modern slavery will require a courageous government response that addresses these things head-on.

Read more: Canada's Modern Slavery Act is the start — not the end — of efforts to address the issue in supply chains

Authors: Kyla Raby, PhD candidate researching the role of consumers in eradicating modern slavery in supply chains, University of South Australia

Read more https://theconversation.com/australias-modern-slavery-law-is-woefully-inadequate-this-is-how-we-can-hold-companies-accountable-206605

How Business Advisory Services Help Companies Achieve Sustainable Growth

Every business owner aims to build a profitable and sustainable organisation. While dedication, innovation, and hard work are important, achieving l...

Why Body Contouring Has Become A Popular Cosmetic Treatment

Many people maintain healthy lifestyles through regular exercise and balanced eating habits but still struggle with stubborn areas of fat that are dif...

How to Choose the Right POS Hardware for Your Business in Australia

A lot of Australian business owners spend weeks researching POS software but buy hardware almost as an afterthought. That's a mistake. The wrong har...

Why Material Handling Hose Is Critical for Industrial Efficiency

A high-performance material handling hose is an essential component in industries that transport abrasive, dry, or bulk materials on a daily basis...

How to Choose the Right Lawyer in Melbourne for Your Situation

Choosing legal support can feel difficult, especially when the stakes are personal or business-related. The right lawyer in Melbourne should underst...

Hoteliers Look to Clever Value Adds to Increase Revenue

The Australian hospitality industry is still in recovery mode after a notoriously rough patch in recent years. While there has been a post-COVID tra...

Moving to Queensland? Here’s How to Prep Your Car for the Big Move North

There’s no sign of the northern migration slowing down, with thousands of southerners fleeing from chaotic lifestyles and cooler climates for a brig...

Diesel Shortage to Impact Trades and Contractors

Strait of Hormuz blockage affecting all major parts of trades and construction Trades and construction across residential, commercial and industria...

Why Holiday Home Owners Turn to Rental Management Agents

The Allure — and the Reality — of Renting Out Your Property Owning a holiday home is a dream for many Australians. Whether it's a beachside sha...

Why Finding Reliable Doctors In Bundoora Is Important For Long-Term Health

Access to quality healthcare plays an important role in maintaining overall wellbeing and managing health concerns early. Trusted Doctors in Bundoor...

Understanding the Different Types of Car Services: Minor vs Major

When it comes to car maintenance, one of the most important things every vehicle owner should understand is the difference between a minor and a maj...

How Superannuation and TPD Insurance Work Together

Superannuation is an essential part of financial planning in Australia. It is designed to provide individuals with income during retirement, helping...

Tiny Towns funding granted for Mt Hotham and Mt Buller upgrades

Alpine Resorts Victoria (ARV) has welcomed funding support from the Victorian Government’s  Tiny Towns Fund, with both Mt Hotham and Mt Buller se...

Locksmith Services: Why Professional Security Solutions Matter More Than Ever

Security is a critical concern for homeowners, businesses, and vehicle owners alike. Whether it involves protecting a property, replacing damaged lo...

Why Tooth Fillings Are Important For Protecting Damaged Teeth

Cavities and minor tooth damage are common dental problems that can worsen if left untreated. Professional tooth fillings help restore damaged teeth, ...

The Connection Between Visibility and Driver Confidence

Operating a vehicle safely requires an immediate, uncompromised stream of visual information from the surrounding road environment. A driver's decis...

Important Things To Know Before Starting An SMSF Setup

Planning for retirement requires careful financial decisions, and many Australians are now looking for more direct control over how their superannua...

Why Retail Cleaning Plays a Key Role in Customer Experience and Business Success

Professional retail cleaning services are an essential part of maintaining a welcoming, safe, and professional environment for customers and staff...