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Calls for Stricter Regulations on Modern Slavery in Supply Chains

The recent report from the business and trade select committee highlights critical issues surrounding the exploitation of workers and the potential risk for the UK to become a haven for goods produced under poor working conditions. MPs urge the government to address loopholes that allow companies to undermine British businesses by avoiding accountability for labor practices in their supply chains.

In the report released on Monday, the committee outlined the need for legislation requiring companies to publicly disclose their strategies for combatting modern slavery within their operations. It emphasizes that stronger penalties should be imposed on non-compliant firms, advocating for measures such as publicly naming and shaming those that fail to adhere to these standards.

With the tightening of regulations in Europe and the US aimed at prohibiting the importation of goods produced under exploitative conditions, the committee argues that the Modern Slavery Act must be revised urgently. This sentiment gained urgency following troubling revelations regarding Shein, a fast fashion retailer known for its low prices, which has faced criticism for its lack of transparency regarding cotton sourced from China’s Xinjiang region—an area linked to forced labor involving Uyghurs.

Shein is reportedly preparing to launch its listing on the London Stock Exchange this year. In correspondence with the committee, the company acknowledged that its products shipped to the UK are not subject to the same rigorous checks that apply to those sent to the US, where strict regulations prohibit importing goods linked to forced labor.

Committee chair Liam Byrne expressed concern that the UK risks becoming a “dumping ground” for such products, noting that the country could establish a “second-class regime” in safeguarding its markets against forced labor practices. The committee’s recommendations extend beyond supply chain transparency, calling on the government to enhance provisions within the upcoming employment rights bill, which is expected to be reviewed by parliament shortly.

Specific suggestions include tightening rules on zero-hours contracts, clarifying notice periods for schedule changes, and accelerating efforts against disguised self-employment. Byrne emphasized the need for strategic alterations to ensure that reputable British firms are not undercut by companies that exploit labor standards.

“What benefits the workforce is ultimately beneficial for the economy and businesses in Britain,” Byrne asserted. He noted that fostering an environment where all firms can compete on equal footing is essential for the UK to achieve its goal of becoming the fastest-growing economy within the G7.

The committee also recommends that the government clearly define “reasonable notice” for shift changes and establish a reference period to assess regular hours for employees on zero-hours contracts. Byrne warned against allowing the bill to evolve into a framework full of exceptions that could enable non-compliant companies to maintain unfair advantages.

A spokesperson from the government responded, stating, “Our employment rights bill aims to advance workers’ rights across the nation, addressing poor working conditions while benefiting both businesses and employees. Revitalizing the labor market is fundamental to economic growth and is integral to our vision for change.”

Expectations are set for new amendments to be presented in parliament this week, possibly extending the probationary period for new hires to nine months instead of the previously discussed six months, and potentially eliminating the proposed “right to switch off” during personal time.

Further, there will be an announcement concerning the powers of the new Fair Work Agency. This agency will unify several government functions currently focused on preventing modern slavery, giving it the authority to conduct investigative activities, initiate civil actions against companies, and impose fines.

A government source emphasized the importance of ensuring legislative changes are conducive to business interests. “Our aim is to develop a new framework of workers’ rights that promotes higher living standards and stimulates economic growth,” the source noted, emphasizing that employees who feel supported and valued are more likely to remain in their positions and enhance productivity, thereby nurturing an environment favorable to business expansion.

Source
www.theguardian.com