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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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Mission: Make fair and accountable recruitment an accessible commodity – the rule rather than the exception, by
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 surplus in countries with high unemployment and underemployment
Unintended outcome: Debt bondage, forced labor trafficking; labor broker abuses
Recruitment & Selection
5. Cost of repatriation
Entry and exit barriers
Receiving Country Governments
Poor to no regulation, low penalties for malpractice
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
Poverty and Unemployment
Factors that increase vulnerability of the labor migration system to forced labor issues
Where the risk to forced labor, debt bondage and trafficking are most likely
The worker’s risk to debt bondage and forced labor starts before they even reach the workplace - even before they get the job
Breakdown of a Filipino Worker’s Wages for a 2-year Contract in Taiwan (NT414,720), 2009
Source: Verité, 2009
Employers need to pay for recruitment services if they want to eliminate forced labor in supply chains
$3,000 – $3,500
to cover recruitment hiring, pre-employment training and life-planning, personality testing, worker hot-line, monitoring visits
Actual Cost of
actual costs paid by worker
Note: “Actual cost of services” can vary depending on type of workers being recruited and the nature of the supply market.