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Forced Labor and Trafficking Risks in Global Supply Chains . Mission: Make fair and accountable recruitment an accessible commodity – the rule rather than the exception, by . Scope of this Presentation. Causes, Benefits and Risks of Labor Migration. Labor shortages in receiving countries.

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Presentation Transcript
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Mission: Make fair and accountable recruitment an accessible commodity – the rule rather than the exception, by

slide4

Causes, Benefits and Risks of Labor Migration

Labor shortages in receiving countries

Receiving countries keep businesses in-country

Employers get skilled workers

Workers get jobs, and acquire and improve skills

Sending countries earn from dollar remittances

Labor migration

Labor surplus in countries with high unemployment and underemployment

Unintended outcome: Debt bondage, forced labor trafficking; labor broker abuses

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Workers subsidize the cost of labor migration, fall into debt bondage

Recruitment & Selection

Return/Reintegration

On-Site Conditions

  • Commitment/ Reservation Fee
  • Placement Fee
  • Direct Costs
  • Deductions (Run away insurance, other deductions)

5. Cost of repatriation

  • Risks to workers
  • Forced labor
  • Excessive, forced overtime
  • Harassment and abuse
  • Pregnancy testing, forced contraception/abortion
  • Workers who run-away
  • Risks to employers
  • Worker dissatisfaction and unrest
  • Runaway workers
  • Litigation
  • Public censure: stakeholder action, dissatisfied customers
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Primacy of immigrations policies

Entry and exit barriers

Receiving Country Governments

Poor to no regulation, low penalties for malpractice

Labor Brokers

Corruption and collusion

Poor ability to negotiate with receiving countries for better worker protection

Sub-contract recruitment, selection and hiring, and even on-site management of foreign workers, but have no visibility or control over the process

Sending Country Governments

Employers

Imperfect information

Workers

Poverty and Unemployment

Factors that increase vulnerability of the labor migration system to forced labor issues

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The worker’s risk to debt bondage and forced labor starts before they even reach the workplace - even before they get the job

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Breakdown of a Filipino Worker’s Wages for a 2-year Contract in Taiwan (NT414,720), 2009

Source: Verité, 2009

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Employers need to pay for recruitment services if they want to eliminate forced labor in supply chains

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Sample cost comparison

$3,000 – $3,500

…excluding Passport,

Medical, Clearances

to cover recruitment hiring, pre-employment training and life-planning, personality testing, worker hot-line, monitoring visits

Actual Cost of

Services:

$750 (+/-)

actual costs paid by worker

+$400

Note: “Actual cost of services” can vary depending on type of workers being recruited and the nature of the supply market.

$1,150

thank you for questions contact me at marie apostol marie@fairhiringinc com
Thank You!For questions, contact me at:Marie Apostolmarie@fairhiringinc.com