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Establishing a Modern Slavery Act in Australia

1. Why establish a Modern Slavery Act in Australia?

2. Australian Government Public Consultation on proposed model of Modern Slavery in Supply Chains Reporting Requirement 

3. Parliamentary Inquiry into establishing Modern Slavery Act 

4. Where can I learn more? Events and webinars

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1. Why establish a Modern Slavery Act in Australia?

The Global Slavery Index of Walk Free Foundation estimates there are about 4,300 slaves in Australia. The US Department of State notes that some migrant workers from Asia and several Pacific Islands, recruited to work temporarily in Australia in agriculture, construction, hospitality, and domestic service were found to be in forced labour. Further, Australian companies may be implicated in using forced labour in their supply chains through sourcing goods and services domestically and internationally. Some Australian business are speaking out about discovering modern slavery in their supply chains.

By introducing an Australian Modern Slavery Act, the Australian Government has an opportunity to show leadership domestically and in the region to protect victims and eradicate modern slavery. An Australian Modern Slavery Act is needed to complement and build on existing voluntary initiatives, laws and international standards, in order to address unregulated gaps in global markets and harness the power of business.

Further, an Australian Modern Slavery Act would create a level playing field for companies, and improve the level of corporate disclosure to the benefit of stakeholders including civil society, investors, consumers, academia and business itself. The Modern Slavery Act in the UK has demonstrated it can create change, by elevating modern slavery as an issue discussed mostly by ethical sourcing staff, ethical consumers and investors, to a priority issue discussed by average consumers, mainstream investors, both buyers and suppliers and, crucially, senior corporate management. Companies reported to Business & Human Rights Resource Centre that the Act empowers internal advocates within companies, enabling them to both internally through access to senior management, as well as externally with ammunition to have conversations with and enforce standards at suppliers.

The UK Act also significantly increased transparency. While many of the over 2000 statements on the UK Modern Slavery Act Registry are patchy, never before have so many companies made at least some information available on what their business structures and supply chains look like, and how they undertake due diligence.

But, most importantly, the Act is driving action. Statements show that a number of a number of companies are developing or revising existing policies and due diligence processes to address modern slavery, such as risk assessments, staff training, or supplier contracts. In fact, a report by the Ethical Trading Initiative and Hult International Business School found that in the year since the UK Act came into force, CEO engagement with modern slavery has doubled, companies are collaborating more with peers, NGOs and multi-stakeholder initiatives, and business-to-business communication and pressure has increased significantly. 

Sources:

2. Australian Government Public Consultation on proposed model of Modern Slavery in Supply Chains Reporting Requirement

On 16 August 2017, the Australian Government announced its intention to introduce legislation that will require large businesses to report annually on actions taken to address modern slavery, including in their supply chains. It released a consultation paper on a proposed model for the Modern Slavery in Supply Chains Reporting Requirement. It is proposed that this reporting requirement will require large corporations and other entities operating in Australia to publish annual statements outlining their actions to address modern slavery in their operations and supply chains. A central repository for modern slavery statements is also proposed.

The government is conducting a public consultation which, together with the Parliamentary inquiry process (see below), will help determine the final content of the proposed legislation. A  series of stakeholder roundtables will be convened between August and December 2017. Written submissions are also invited. Submissions closed on 20 October 2017. The government's high-level outline of key issues raised during the consultation roundtables is available here

Further information on the consultation process is available on the modern slavery consultation page of the Attorney-General's Department website.

The Advisory Committee of the Modern Slavery Registry (Business & Human Rights Resource Centre, Humanity United, Freedom Fund, Anti-Slavery International, Ethical Trading Initiative, Trades Union Congress (TUC), CORE Coalition, Unicef UK, Focus on Labour Exploitation (FLEX) and Freedom United) has published its recommendations to the Australian Government on the introduction of a supply chains reporting requirement in Australia.

The Advisory Committee recommends the Australian government incorporates strong compliance drivers in the proposed reporting requirement for qualifying businesses headquartered, or operating, in Australia. 

These compliance drivers include:

  • financial penalties for non-compliant qualifying entities;
  • ​free, independent and publicly-accessible central repository of annual statements;
  • public list of companies required to comply with the reporting requirement; and
  • public procurement incentives for compliance.

The full submission is available here

3. Parliamentary Inquiry into establishing Modern Slavery Act 

A joint Parliamentary inquiry into whether Australia should adopt national legislation to combat modern slavery, comparable to the United Kingdom’s Modern Slavery Act 2015, has been underway since 15 February 2017. 

An interim report was tabled in August 2017 summarising the evidence heard so far on global supply chain reporting. The report highlights the strong support from businesses, unions and NGOs for the introduction of supply chain reporting requirements for businesses and organisations operating in Australia. The report recommends that the Australian Government consider introducing a Modern Slavery Act in Australia, including a mandatory supply chain reporting requirement.

A final report was tabled on 7 December 2017 setting out final recommendations to the Australian Government.

Please find here further information on the following questions:

  • What is this inquiry about and how is it tracking?
  • How can I make a submission?
  • What elements should such an Act include? 

The inquiry has received more than 200 submissions from a broad range of both domestic and international stakeholder groups.

Below is an overview over businesses, investors and civil society organisations in support of the establishment of a Modern Slavery Act in Australia. 

Business support:

Investor support:

Civil society submissions:

Academia submissions:

Government and political party support:

Trade union submissions:

Additional stakeholder submissions: 

All full list of all public submissions to the inquiry can be found here.

Further resources:

4. Where can I learn more? Events and webinars

Past events and webinars

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11 December 2017

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