By Dan Fielding
What is modern slavery?
Modern slavery is a term used to describe situations where coercion, threats, or deception are employed to exploit victims and deprive them of their freedom. Modern slavery includes slavery, forced labour, human trafficking, debt bondage, child labour, and forced marriage.
Modern slavery cases do not always involve physical violence. Perpetrators often use subtle threats and psychological pressure to control victims.
Modern slavery is only used to describe serious exploitation. It does not include practices like substandard working conditions or underpayment of workers. Nevertheless, these practices are also illegal and harmful and may be present in some situations of modern slavery or escalate into modern slavery if not addressed.
How prevalent is it?
The International Labour Organisation estimated that 50 million people were living in modern slavery in any given day in 2021. Of these people, 28 million were in forced labour. Worryingly, the number of people in forced labour is increasing and occurs predominantly in the private sector.
World Vision estimated that last year, the average New Zealand household spent $77 per week on goods likely made through child labour and/or forced labour – that equates to nearly $8 billion a year. 10% of New Zealand’s imports in 2023 were likely harvested, mined, or produced using modern slavery.
While it might be tempting to think that modern slavery is a problem confined to far-off locations, New Zealand is not immune to such practices. Shockingly, the Walk Free Foundation estimates that there are approximately 8,000 people in modern slavery in New Zealand. In 2020, New Zealand also saw its first criminal conviction for both human trafficking and dealing in slaves.
Modern slavery can occur in every industry and sector, from agriculture and fisheries to construction, healthcare, IT services, hospitality, manufacturing, and mining – often hiding in plain sight within an organisation’s supply chains. Factors such as poor governance, weak rule of law, inadequate labour protections, and socio-economic conditions like poverty significantly increase the risk of modern slavery.
Additionally, modern slavery is often linked to other crimes and activities that adversely impact human rights, such as bribery, corruption and environmental damage.
What are other jurisdictions doing to combat modern slavery?
Globally, there has been a significant increase in legislation designed to combat modern slavery. Starting in California, then the United Kingdom, Australia, and now Canada – these jurisdictions have all adopted modern slavery reporting frameworks that require in-scope organisations to disclose efforts to identify and mitigate modern slavery risks in their operations and/or supply chains.
In addition to introducing reporting frameworks, France, Germany, and more recently, the European Union, have moved beyond simple reporting, to also require in-scope organisations to proactively undertake human rights due diligence.
Collectively, these laws have set a global standard for combating modern slavery by strongly drawing on the UN Guiding Principles on Business and Human Rights – the authoritative international best practice guidance. These efforts are compelling organisations to take responsibility for their supply chains.
What is New Zealand’s approach to combatting modern slavery?
Currently, New Zealand has no accountability legislation that addresses transparency in supply chains. This means that New Zealand organisations are likely to be unknowingly importing goods and/or services connected to modern slavery.
While dealing in slaves, trafficking in persons, and the exploitation of ‘unlawful employees’ and ‘temporary workers’ are criminal offences in New Zealand – due to the complexities involved these measures have limited impact on combating modern slavery embedded in the supply chains of New Zealand organisations.
Effective change will only incur when organisations are encouraged or required to engage with their supply chains and use their influence to work with their suppliers to identify and address modern slavery.
In 2022, the then Labour Government proposed introducing modern slavery legislation and the Ministry of Business, Innovation and Employment undertook public consultation. However, no legislation was introduced before the 2023 general election.
While the Coalition Government has not ruled out introducing modern slavery legislation, they have indicated that modern slavery legislation is not a current priority, preferring to rely on New Zealand’s current policy and legislative setting. It remains open to debate if this is an effective way to ensure New Zealand is meeting its international commitments to combat modern slavery.
For completeness, former National MP, Simon O’Connor did lodge a member’s bill that largely replicates the Australian Modern Slavery Act 2018 (Cth) – that member’s bill has now been carried forward by National MP Barbara Kuriger – but the member’s bill has yet to be pulled from the ballot.
Why should organisations be concerned about modern slavery?
Putting aside the moral importance to combat modern slavery, organisations should be concerned about modern slavery for several reasons:
Reputational risk: not addressing modern slavery can harm an organisation’s reputation, brand value, and relationships with suppliers, customers, and other key stakeholders. Modern slavery goes against our kiwi values. New Zealand’s identity as a nation is built on fairness, equality, and sustainability.
Legal compliance: some New Zealand organisations operating in or with partners in jurisdictions like Australia may already be subject to foreign modern slavery legislation. This is only going to increase and could potentially impact the ability of New Zealand organisations to access foreign capital and marke
Consumer and investor expectations: there is a growing demand from consumers and investors for organisations to maintain ethical and sustainable supply chains.
In the words of Dr James Cockayne, NSW Anti-slavery Commissioner, modern slavery leaves us all worse off as modern slavery represents a system failure in that it:
- Breeds poverty
- reduces productivity
- institutionalises inequality
- weakens economic multipliers
- discourages innovation
- distorts capital markets
- impacts government revenue and spending
- weakens governance
- breeds corruption and
- can harm the environment.
Dan Fielding
Dan Fielding is a Senior Associate at MinterEllisonRuddWatts specialising in employment and public law.
