EFFECTIVE MODERN SLAVERY GRIEVANCE MECHANISMS A Case Study Publication for Business March 2021 Global Compact Network Australia 2 3 Effective Modern Slavery Grievance Mechanisms Acknowledgement of Country Authors We acknowledge Aboriginal and Torres Strait Islander Dr Nia Emmanouil peoples as the First Peoples of Australia. We pay our Manager, Programmes respects to Elders past, present and emerging. Our vision for Global Compact Network Australia reconciliation is a future where all Australians are united by our shared past, present, future and humanity. Leah Sjerp Coordinator, Programmes Acknowledgements Global Compact Network Australia We gratefully acknowledge the generous and valuable input from the following organisations: ABN AMRO Bank, Allens, Contributors Country Road Group and David Jones businesses, Fair Labor Vanessa Zimmerman Association, NXP Semiconductors, Responsible Business Board Director, and Chair, Business and Human Rights Alliance and Thai Union Group. The project team would also and Modern Slavery Community of Practice like to extend a special thank you to Pillar Two for their expert insights and valuable reviews throughout the development of Global Compact Network Australia the publication. Kylie Porter This publication was funded by the Australian Government Executive Director through the National Community Crime Prevention Program: Global Compact Network Australia Modern Slavery Grant opportunity. The views expressed in this publication are the author’s alone and are not necessarily Aimee Luff the views of the Australian Government. Executive Assistant to the Executive Director Global Compact Network Australia Copy Editors Ruth Dearnley and Elissa Hill, Influence Global Designers Elaine Allen, Renae Howard and Samantha Quigley, Gosh CreativeTM Printed by Southern Impact Disclaimer The material in this report is not legal advice and references to the Australian Modern Slavery Act and any other legislation are intended as guidance only. The Global Compact Network Australia does not accept any responsibility for situations that may arise from anyone relying upon the contents of this Guidance Note. The mention of any commercial entity or product in this publication is intended strictly for learning purposes and does not constitute an endorsement by the Global Compact Network Australia or authors of this publication. The material in this publication may be quoted and used provided there is proper attribution. The images in this publication are used for visual effect only. They are not intended to represent people experiencing modern slavery or modern slavery-like conditions. Copyright © 2021 Global Compact Network Australia. The material in this publication is copyrighted. The Global Compact Network Australia encourages the dissemination of the content for educational purposes. Content from this publication may be used freely without prior permission, provided that clear attribution is given to the Global Compact Network Australia and that content is not used for commercial purposes. 4 5 Effective Modern Slavery Grievance Mechanisms Contents Contents Acronyms and Abbreviations 7 About this Publication 8 Purpose 8 Approach 8 How to use this publication 8 Executive Summary 9 Introduction 12 Prevalence of modern slavery 13 Reporting and acting on modern slavery 13 Using grievance mechanisms to hear and address modern slavery complaints 13 Structure of the report 14 Part One: External Expectations and Standards 15 The UN Guiding Principles on Business and Human Rights 16 Other key international standards 18 Key stakeholders 19 Part Two: Introduction to Grievance Mechanisms 20 What is an effective grievance mechanism? 21 How do grievance mechanisms support businesses to meet their responsibility to respect human rights? 21 What are the different types of grievance mechanisms? 22 Part Three: Modern Slavery and Grievance Mechanisms 25 What is modern slavery? 25 Key regulatory developments in Australia and overseas 25 Implementing effective operational-level grievance mechanisms to address modern slavery 27 Working in partnership with suppliers 28 Part Four: Case Studies 29 Case Study 1: NXP Semiconductors 30 Case Study 2: Country Road Group and David Jones 34 Case Study 3: Thai Union Group 36 Case Study 4: ABN AMRO Bank 38 Case Study 5: Fair Labor Association 40 Case Study 6: Responsible Business Alliance 42 Key Insights 44 References 46 6 7 Effective Modern Slavery Grievance Mechanisms Acronyms and Abbreviations Acronyms and Abbreviations AFP Australian Federal Police AusNCP Australian National Contact Point Australian Act Australia’s Modern Slavery Act 2018 (Cth) Cth Commonwealth Government (Australia) CHRB Corporate Human Rights Benchmark ETI Ethical Trading Initiative FLA Fair Labor Association GCNA Global Compact Network Australia Guidance Note Global Compact Network Australia’s Implementing Effective Modern Slavery Grievance Mechanisms: A Guidance Note for Business (the companion report to this document) GRI Global Reporting Initiative IFC International Finance Corporation, a part of the World Bank Group ILO International Labour Organization NGO Non-Government Organisation NXP NXP Semiconductors OECD Organisation for Economic Co-operation and Development OECD Guidelines OECD Guidelines for Multinational Enterprises OHCHR Office of the High Commissioner for Human Rights PPP Public Private Partnership RBA Responsible Business Alliance SDGs Sustainable Development Goals SVAP Responsible Business Alliance’s Supplemental Validated Audit Process UK United Kingdom UK Act Modern Slavery Act 2015 (UK) UN United Nations UNGPs United Nations Guiding Principles on Business and Human Rights USA United States of America VAP Responsible Business Alliance’s Validated Assessment Program 8 9 Effective Modern Slavery Grievance Mechanisms Executive Summary About This Publication Executive Summary This report was funded by an Australian Border Force, To make it possible for grievances to be addressed early and Modern slavery exists today in Australia and around the can identify, prevent, mitigate and account for how they National Community Crime Prevention Program, remediated directly, the UNGPs state that businesses should world. Government estimates found that over a two- address their adverse human rights impacts. Modern Slavery Grant. This grant seeks to support the establish or participate in effective operational-level grievance year period, up to 1900 people in Australia experienced Australian businesses face external expectations both implementation of Australia’s National Action Plan to mechanisms for individuals and communities who may be modern slavery.² Globally, over 40 million people are domestically and globally to implement effective grievance Combat Modern Slavery 2020-25. adversely impacted by the business. These mechanisms also mechanisms capable of hearing and addressing human rights estimated to live in conditions of modern slavery,³ support human rights due diligence processes by enabling related complaints, including around modern slavery. These Key intended outcomes of the National Community Crime including 16 million in private sector supply chains.4 business enterprises to identify adverse human rights expectations predominantly arise from the UNGPs, but also Prevention Program, Modern Slavery Grant opportunity, as impacts with which they may be involved. The report aims to Despite there being no universally accepted definition through other international frameworks. Several factors are stated by Australian Border Force include: help businesses to understand current practice in relation to of modern slavery, the term is commonly used to refer bringing the role of effective grievance mechanisms to the > Increasing awareness amongst vulnerable groups, establishing and operating grievance mechanisms to address to exploitative practices including forced labour, slavery, attention of business. These include additional expectations service providers, businesses and the broader Australian modern slavery so that they can set up and run their own servitude, debt bondage, human trafficking, deceptive from key stakeholders such as States, international community of modern slavery in Australia, including mechanisms individually or collectively in alignment with the recruiting for labour services, the worst forms of child labour institutions, investors, customers, consumers, worker awareness of indicators to support the identification of UNGPs. and forced marriage. Australia’s Modern Slavery Act 2018 organisations and civil society organisations, the growth victims, best practice responses and referral pathways. (Cth) (Australian Act) is the first legislation in the world to and impact of international benchmarking, and heightened > Increasing understanding and supporting effective Approach define modern slavery.5 reporting expectations. implementation of Australia’s Modern Slavery Act 2018 The report is informed by desktop research, a literature review Modern slavery practices constitute serious crimes under To effectively provide a meaningful forum for the resolution (Cth) (Australian Act) amongst businesses and the broader and one-on-one interviews with organisations featured in the Australian law,6 and seriously violate a person’s human rights of complaints, grievance mechanisms must be trusted and Australian community to support combating modern case studies in Part Four of the report. These case studies and dignity.7 Individuals working in agriculture,8 construction,9 used by the people they are meant to serve. The UNGPs’ slavery in supply chains. demonstrate good practice in addressing modern slavery domestic work,10 meat processing,11 cleaning, hospitality effectiveness criteria for non-judicial grievance mechanisms complaints and include examples of operational (company) and food service12 industries in Australia are reported to be form the basis for dialogue about ‘effectiveness’ in this report > Reducing factors that make people vulnerable to modern level, supplier partnership and multi-stakeholder grievance more likely to be impacted by modern slavery practices — and the companion guidance note. The criteria state that to slavery and increasing resilience to modern slavery mechanisms. In taking this approach, the report aims to such as forced labour — than in other industries. If they are ensure their effectiveness, non-judicial grievance mechanisms amongst vulnerable groups, such as migrant workers and build Australian businesses’ practical knowledge of the steps a temporary migrant worker, this vulnerability increases.13 should be legitimate, accessible, transparent, predictable, children. and considerations needed to implement their own effective Countries with enacted and proposed modern slavery equitable, rights-compatible, a source of continuous > Building and enhancing networks that aim to share best grievance mechanisms, individually or collectively. Experts on legislation include the United Kingdom (UK),14 California,15 the learning, and for operational-level mechanisms, be based on practice, resources and information on modern slavery. modern slavery and the UNGPs have peer reviewed the report Netherlands,16 and Canada.17 Legislation in France18 and laws engagement and dialogue.21 to ensure its validity. proposed by the European Union highlight the importance Purpose This report broadly introduces the different types of grievance of broader human rights risk management across the entire mechanisms available to people impacted by modern slavery The purpose of this report is to increase Australian How to use this publication value of chain of a company. Since the implementation of in businesses' operations and supply chains. Specific focus businesses’ understanding of effective grievance The report offers businesses a basis for understanding the Australian Act in 2019, business awareness in Australia is given to mechanisms that business can implement within mechanisms that can address modern slavery in their the expectations set out in the UNGPs and the Australian has further strengthened and been accompanied by growing their own operations, in partnership with suppliers and operations and supply chains, and to equip businesses to Act in relation to grievance mechanisms. By incorporating expectations from external stakeholders such as civil society, through multi-stakeholder initiatives. establish and operate these mechanisms. This will support case studies of Australian and international businesses investors, and customers. Although there are significant businesses to describe their actions to respond to modern Case studies of four businesses based in Australia and and organisations, it illustrates good practice examples for challenges posed by complex global supply chains where slavery risks, including remediation processes — overseas and two international multi-stakeholder initiatives designing and implementing grievance mechanisms that visibility can be limited, many businesses now view modern a requirement of the Australian Act. draw out key insights about the challenges and opportunities can address modern slavery. This report is accompanied slavery as a critical risk for the business and the people it may According to the United Nations (UN) Guiding Principles on of designing, implementing, and measuring effective by a practical guide, Implementing Effective Modern Slavery impact. Business and Human Rights (UNGPs), a grievance mechanism grievance mechanisms. The case studies reveal that although Grievance Mechanisms: A Guidance Note for Business This report aims to support businesses to better understand is a critical means by which an affected person or stakeholder most grievance mechanisms are not designed to specifically (guidance note). The guidance note provides practical advice, can raise a human rights concern and lodge a complaint with how they can effectively address and report on modern detect and remedy modern slavery practices, they are taking flags key considerations, and outlines good practice steps for a business enterprise to seek remedy.1 slavery risks by building practical knowledge about the role into account, and to varying degrees applying, the UNGPs designing and implementing grievance mechanisms, based and function of effective grievance mechanisms. It is hoped effectiveness criteria to ensure that they are trusted, used and on the research presented in this report. that businesses will use this report and the supplementary can help to resolve modern slavery complaints. guidance note to support how they establish and operate The case studies show that there is much work to be effective grievance mechanisms. These publications also aim done to fully align grievance mechanisms with the UNGPs’ to enable business to better report under the Australian Act. effectiveness criteria. Measuring the effectiveness of The United Nations (UN) Guiding Principles on Business and grievance mechanisms appears to be in its infancy across Human Rights (UNGPs),19 describe grievance mechanisms as many of the case studies. Also, no organisation recounted a critical means by which an affected person or stakeholder seeing many instances of modern slavery being reported can raise a human rights concern and lodge a complaint with through the grievance channels they offer, despite knowing a business enterprise to seek remedy.20 The UNGPs state the prevalence of certain types of modern slavery in their that for grievances to be addressed early and remediated supply chains and reports from civil society organisations. directly, business enterprises should establish or participate This might suggest that businesses need to improve trust in effective operational-level grievance mechanisms for and accessibility. Building the legitimacy of grievance individuals and communities who may be adversely impacted. mechanisms with site management and workers was also Grievance mechanisms also help businesses to identify their a consistent theme raised. This could in turn impact the involvement in modern slavery practices, thereby supporting accessibility of mechanisms for workers. human rights due diligence — a process by which companies 10 11 Effective Modern Slavery Grievance Mechanisms Executive Summary Collaborate: The most comprehensive approach is for a business to have its own grievance mechanism, as well as concrete expectations for suppliers to implement their own mechanisms. Access to remedy: In determining what level of responsibility a business has in providing remedy in relation to the activities of suppliers, consideration needs to be given to whether the business has caused, contributed to, or is directly linked to the activity. Design: Worker-centric design and implementation is critical to building trust for, and credibility of, the mechanism. Design: Building supplier ownership of a factory-level grievance mechanism begins in the design phase of developing a mechanism. Collaborate: Effective working relationships with civil society and worker organisations, including through the staffing of grievance hotlines and in carrying out grassroots socialisation of a mechanism, can help to build worker trust in the grievance channel and in turn, promote accessibility. Access to remedy: Leveraging relationships with factories can ensure more adequate and effective access to grievance mechanisms for direct and supply chain workers. Similarly, leveraging long-term relationships with suppliers, by fostering trust and a collaborative approach, can support systemic change in supply chains. Access to remedy: Creating access to an effective grievance mechanism and remedy beyond tier one of the supply chain is a key challenge. Beyond identifying issues in tiers two and three of the supply chain, businesses need to consider their role in giving access to an effective remedy to these workers. Trust: Building trust with workers and site management is critical to ensuring effective access to, and use of, grievance mechanisms. Trust: Despite the resource intensity required in their establishment, worker voice apps are scalable and can offer a holistic ‘one-stop-shop’ that can help to build worker trust in the organisation and credibility for the grievance mechanism. Escalation: The effectiveness of worker voice apps depends upon the management systems that sit behind the app. Ensuring clear lines of responsibility in relation to the receipt, classification and management of grievances lodged is critical. The findings suggest there is scope for businesses to further also tied to leveraging relationships with factory owners and Trust: Quick acknowledgement of receipt of complaints and notification of the approximate turnaround time helps develop and operationalise the expectations set out by managers. Internal proactive approaches, such as worker to build trust for the grievance mechanism and in how complaints are handled. the UNGPs’ effectiveness criteria. They also show that the committees and human resources clinics, can also be used COVID-19 pandemic has impacted on businesses’ capacity to prevent issues from escalating into potential instances of to detect and respond to modern slavery, partially resulting modern slavery, and support a timelier resolution of issues. Track: Grievance tracking charts can help build transparency and predictability around the grievance process. from a lack of knowledge about the real impacts to workers’ These accompanying actions demonstrate that it is important lives. Critically, when COVID-19 restrictions limit on-site to consider the whole ecosystem of approaches that can investigations and audits, existing factory-level grievance complement and enable the implementation of an effective Pilot: Piloting a mechanism at one or a few locations and with the business’s own employees can be helpful in mechanisms are one of the few channels for workers to grievance mechanism. identifying gaps before broader implementation across locations and suppliers. communicate what is happening on the ground. While the grievance mechanisms themselves form the Key insights focus of the case studies, the importance of accompanying Key insights on the following page can be applied by business COVID-19: COVID-19 impacts to businesses have drastically decreased the visibility of issues faced by workers. actions — both internally and in partnership with external in the design and implementation of an operational-level While COVID-19 restrictions are limiting the ability of auditors to conduct physical investigations, existing factory- stakeholders — that support their effectiveness is made clear. grievance mechanism, or in partnership with suppliers. These level grievance mechanisms that are effective can continue to provide workers with a channel to make complaints. For instance, fostering effective working relationships with insights draw on the case studies and are expanded upon in civil society and worker organisations can help to build worker the companion guidance note. Access to remedy: Proactive approaches, such as worker committees and human resources clinics, can be used trust in grievance channels and in turn, promote accessibility. to prevent issues from escalating into potential instances of modern slavery and can support a timelier resolution Ensuring more effective access to grievance mechanisms of issues and potential breaches. for direct workers — those directly employed or contracted by a business enterprise — and workers in supply chains was Note: It is suggested that key insights are read sequentially to better support the design and implementation of an effective grievance mechanism. 12 13 Effective Modern Slavery Grievance Mechanisms Introduction Introduction This report aims to increase awareness and Other organisations can elect to report voluntarily. These understanding of effective grievance mechanisms requirements reflect the growing global trend to embed so that Australian businesses can address modern international ‘soft law’ initiatives like the United Nations slavery in their operations and supply chains and deliver (UN) Guiding Principles on Business and Human Rights higher quality mandatory and voluntary reporting under (UNGPs) and Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises35 Australia’s Modern Slavery Act 2018 (Cth) (Australian (OECD Guidelines) into legislation. This is, in part, based on ‘a Act). It provides practical examples of action from growing consensus that both Governments and businesses around the world. have a role to play in addressing the human rights impacts of business, and that Governments must step into the global Prevalence of Modern Slavery framework and regulate it’.36 The International Labour Organization (ILO) approximates In addition to legal, compliance and broader business drivers, that over 40 million people live in modern slavery conditions the International Finance Corporation (IFC) report Managing globally,22 including 16 million in private sector supply chains.23 Risks Associated with Modern Slavery identifies moral While modern slavery might be perceived as an issue in and business justifications for mitigating modern slavery countries with less stringent labour laws and less developed risks. These include, ‘underlying ethical values, reputation human rights protections, Australian Government estimates management, ensuring compliance with international found that up to 1900 people in Australia experienced modern conventions and laws, reducing business risk, securing slavery over a two year period (2015–2016 and 2016–2017).24 access to markets, and increasing security of supply and More broadly, methodological improvements in the Global business productivity’.37 Increasing pressure from consumers Slavery Index have exposed a higher prevalence of modern and external stakeholders — including investors and civil slavery in highly developed, high-income countries, than was society organisations — is also creating impetus for business previously understood.25 to act on modern slavery.38 Importantly, the Commonwealth The industries operating within Australia that are most Modern Slavery Act 2018: Guidance for Reporting Entities prone to modern slavery practices — such as forced labour also highlights the Government’s view that acting to — include agriculture,26 construction,27 domestic work,28 address modern slavery risks can provide commercial and meat processing,29 cleaning, hospitality and food services.30 reputational benefits to businesses.39 Migrants are the victims of modern slavery in most of the identified cases in Australia.31 This reflects a global trend Using grievance mechanisms to hear and address whereby migrants and refugees are most vulnerable to and modern slavery complaints disproportionately impacted by modern slavery.32 Under the mandatory criteria for modern slavery statements Due to the pervasive nature of global supply chains, it is in the Australian Act, reporting entities are required to describe crucial for businesses in Australia to understand the modern actions taken to assess and address modern slavery risks, slavery risks that extend beyond country borders. Supply including their due diligence and remediation processes.40 chain workers and contractors can be ‘hidden workers’ who Although grievance mechanisms are not explicitly referenced do not have access to worker protections and remedy when under the mandatory criteria, they are named in the Guidance exploitative practices occur. Regulatory developments in for Reporting Entities under the requirement to report on Australia and elsewhere recognise the need for entities to remediation processes.41 This guidance expressly states identify and address modern slavery risks that exist within that due diligence and remediation processes should be business operations and beyond into supply chains. For implemented in line with the UNGPs recommendations. example, the Australian Act requires entities to describe Reporting statements must also describe how entities are modern slavery risks that may be present throughout their assessing the effectiveness of actions taken to assess and operations and supply chains and explain their actions to address modern slavery risks.42 This includes stating how they assess and address these risk areas. are assessing the effectiveness of any grievance mechanisms and other remediation processes they may have established. Reporting and acting on modern slavery Grievance mechanisms are not the only avenue through Regulatory requirements now compel entities based or which businesses should seek to identify modern slavery operating in Australia, with an annual consolidated revenue and broader human rights risks. However they complement of at least $100 million, to report annually on modern slavery other risk management practices undertaken as part of a risks within their own operations and supply chains and business’s human rights due diligence (e.g. risk assessments those of any entities they control.33 They must also report and audits). on measures taken to assess and address those risks.34 14 15 Effective Modern Slavery Grievance Mechanisms Part One: External Expectations Structure of the report There are four parts to this report: Understanding key terms Part One provides an overview of the external expectations and Standards facing businesses in relation to grievance mechanisms that The UNGPs set two separate but inter-related address human rights related complaints. It also explores the expectations for establishing access to remedy: UNGPs as the key standard businesses can follow to meet > The first is for businesses to have grievance these expectations. mechanisms in place; and > The second is for businesses to provide for, or Part Two introduces grievance mechanisms and the role they cooperate in, remediation if they identify they cause play in supporting businesses to meet their responsibility or contribute to an adverse human rights impact. to respect human rights. The different types of grievance mechanisms are identified and explained, with an emphasis In setting out these expectations, the UNGPs offer an on non-State-based mechanisms, as these form the focus of authoritative definition of terms like grievance, grievance the case studies in Part Four. mechanism and remediation. This report draws on the UNGPs’ definition of a grievance, which is understood Part Three broadly defines modern slavery and discusses to be, ‘a perceived injustice evoking an individual’s or a what related grievance mechanisms entail. This includes group’s sense of entitlement, which may be based on how to meet the expectations of the Australian Act and the law, contract, explicit or implicit promises, customary importance of developing and implementing mechanisms practice, or general notions of fairness of aggrieved that are resilient to shocks and crises. communities’.43 Common terms used to describe those who are Part Four is comprised of six case studies of organisations aggrieved include complainants, rights-holders and based in Australia and overseas. It gives examples of stakeholders. Human rights risks should be understood grievance mechanisms that address modern slavery as referring to the risk of harm to rights-holders (e.g. independently, or alongside broader human rights issues. people in a workforce, supply chain or community). But These organisations include businesses, industry and cross- if not addressed, these risks can also have reputational, sector coalitions representing a range of sectors including commercial and legal consequences for business. technology / telecom / electronics, retail, food production Also drawing on the UNGPs, the term grievance and finance. Case studies highlight operational (company) mechanism is used, ‘to indicate any routinised, State- level grievance mechanisms, businesses working in based or non-State-based, judicial or non-judicial partnership with suppliers to develop or implement grievance process through which grievances concerning business- mechanisms, and multi-stakeholder initiatives. related human rights abuse can be raised and remedy can be sought’.44 16 17 Effective Modern Slavery Grievance Mechanisms Part One: External Expectations and Standards Part One: Figure 1: The UNGPs’ Cause, Contribute and Directly Linked Continuum and Appropriate Actions External Expectations and Standards Australian businesses are increasingly expected to grievance mechanisms employed by business enterprises are implement effective grievance mechanisms capable trusted and used. The criteria are that a grievance mechanism of meaningfully hearing and addressing complaints is legitimate, accessible, predictable, equitable, transparent, of their involvement in human rights harm, including rights-compatible, be a source of continuous learning and, modern slavery. This section deals with international for operational-level mechanisms, based on engagement and dialogue (see Part Two for more details). In this context, Adverse Impact expectations specifically. grievance mechanisms enable a process whereby complaints A growing trend from corporate self-governance towards can be heard, businesses can determine their level of regulation,45 signalled by the enshrining of international human involvement in the alleged harm, and where necessary, rights frameworks into domestic law,46 means that businesses remedy can be provided. are increasingly required to develop policy and operational responses to meet the expectations set out in the UNGPs and The UNGPs also establish a framework for companies to Degree of Involvement determine an appropriate course of action when a business other related international standards. identifies that it has caused, contributed to, or is directly linked to an adverse human rights impact (see Figure 1). The UN Guiding Principles on Business and The Guidance for Reporting Entities offers useful examples of Human Rights how businesses may cause, contribute, or be directly linked Comprised of three interconnected pillars, the UNGPs outline to modern slavery. For instance, a risk that a business may the expectation that: cause modern slavery may materialise if a factory owned and > States have a duty to protect against human rights abuse operated by that business uses exploited labour.52 In relation by third parties, including against breaches by business to supply chain risks, a business may contribute to modern Cause Contribute Directly Linked enterprises; slavery if it specifically requests a contractor to source > Businesses have a responsibility to respect human rights the cheapest possible labour for a project, and disregards (‘avoid infringing on the human rights of others’ and evidence of worker exploitation,53 or ‘knowingly sets unrealistic address ‘adverse human rights impacts with which they cost targets and delivery timeframes for a supplier that can Action are involved’); 47 and only be met using exploited labour’.54 A business may be directly linked to modern slavery if it invests in an overseas A A A > Both States and businesses should provide victims of Affected Affected Affected infrastructure project and despite implementing safeguards, Company A Person Third Party Person Third Party Person business-related adverse human rights impacts access to the investee engages subcontractors who use forced labour effective remedy.48 on the project.55 The UNGPs also say that where a business is directly linked to The Office of the High Commissioner for Human Rights (but did not cause or contribute to) harm through a business (OHCHR) further explains that connections between ‘caused’, relationship, the responsibility to respect human rights does ‘contributed to’ and ‘directly linked’ to a human rights impact not require that the business itself provides for remediation, exist on a continuum of involvement.56 Depending on actions though it may take a role in doing so.49 taken, or a failure to act, there is an increasingly accepted Appropriate Action – Appropriate Action – Appropriate Action – Principle 22 recognises that operational-level grievance view that a business can shift along this continuum in relation Prevention and Mitigation Prevention and Mitigation Prevention and Mitigation mechanisms can be an effective means of enabling to involvement in human rights harm and the consequent remediation. Principle 29 expects that businesses establish appropriate action. For instance, if a business fails to act Business should cease or prevent Business should cease or prevent Business should seek to prevent or participate in effective operational-level grievance to prevent or mitigate a persistent and foreseeable modern the impact contribution, and use leverage to and mitigate the impact. Appropriate mechanisms for individuals and communities who may be slavery practice, such as forced labour, which is directly linked mitigate remaining impact action determined by a range adversely impacted.50 to its business operations, it could be considered as enabling of factors: leverage; how crucial For grievance mechanisms to be effective, they should meet the issue to continue and found to have contributed to the the relationship is; severity; and the UNGPs’ effectiveness criteria, established under Principle harm.57 consequences of termination 31.51 The purpose of these criteria is to ensure that the Appropriate Action – Appropriate Action – Appropriate Action – Remediation Remediation Remediation Provide for or cooperate in Provide for or cooperate in Business may take a role in remediation through legitimate remediation through legitimate remediation processes processes Adapted from: Wachenfeld, Margaret, Hodge, Mark, Zimmerman, Vanessa, Lehr, Amy and St. Dennis, Haley. State of Play: The Corporate Responsibility to Respect Human Rights in Business Relationships. Institute for Human Rights and Business (IHRB) and Global Business Initiative on Human Rights (GBI), 2012, 35. Available at: https://www.ihrb.org/pdf/state-of-play/State-of-Play-Full-Report.pdf. 18 19 Effective Modern Slavery Grievance Mechanisms Part One: External Expectations and Standards The relationship between human rights due diligence with stakeholders (including workers’ organisations and international standards — to varying degrees — including for and grievance mechanisms civil society advocates) by demonstrating a business’s example the Ten Principles of the UN Global Compact,66 OECD Key points to consider Human rights due diligence is a complementary process commitment to addressing human rights impacts.62 Guidelines for Multinational Enterprises (OECD Guidelines),67 that enables businesses to ‘know and show’ that they are While the Australian Act does not mandate action on due International Labour Organization’s (ILO) Tripartite Declaration > The UN Guiding Principles on Business and respecting human rights. It is also embedded in the UNGPs. diligence and the implementation of grievance mechanisms, of Principles Concerning Multinational Enterprises and Social Human Rights (UNGPs) are the authoritative According to Principle 17, due diligence is a primary means Policy,68 International Finance Corporation (IFC) Performance it does require entities to report on their actions to respond guide on expectations for business in preventing by which businesses can ‘identify, prevent, mitigate and Standards,69 and the GRI Standards70 (see Figure 2). to modern slavery risks, including any due diligence and and addressing involvement in human rights account for how they address their adverse human rights remediation processes.63 The Guidance for Reporting Entities harm; impacts’.58 The corporate responsibility to respect human also clearly links reporting on grievance mechanisms to Key stakeholders > The UNGPs expect businesses to establish rights (embodied in Principle 15) includes expectations that the UNGPs’ expectation of reporting entities to provide The key stakeholders that expect business to implement effective grievance mechanisms and to businesses should implement due diligence and establish access to remedy.64 Businesses that undertake due diligence effective grievance mechanisms include States, international remediate, or cooperate in the remediation of, or cooperate in grievance mechanisms, to enable access to and implement grievance mechanisms (as part of their institutions, investors and lenders, customers and consumers, any harm that businesses identify they have remedy.59 remediation processes) will be best placed to meet the labour unions, civil society organisations and impacted caused or contributed to; rights-holders, including community members and workers. The UNGPs recognise that effective grievance mechanisms disclosure expectations set by the Australian Act. Investors, lenders and civil society organisations increasingly > The UNGPs establish criteria for the can strengthen human rights due diligence processes.60 expect businesses to ensure that their strategies and effectiveness of grievance mechanisms to Grievance mechanisms can be used to identify trends Other key international standards operations align with the UNGPs and other standards, ensure that mechanisms are trusted and used; in human rights risks and impacts, track the efficacy of Most major international instruments for responsible and that rights-holders have access to effective grievance > The expectations for business conduct set responses to adverse human rights impacts (the third business conduct now expect the provision of grievance mechanisms throughout their business operations and supply out in the UNGPs are reflected across several element of a due diligence process under Principle 20 of the mechanisms and remediation where victims have suffered chains.71 For instance, many international financial institutions other voluntary international standards (to UNGPs61), and inform policy and process improvements. They adverse impacts from business conduct.65 The expectations (less so private banks) now require corporate clients to varying degrees), including the Ten Principles can also be a platform for fostering positive relationships set out under the UNGPs are reflected in other key give communities and other right-holders affected by their of the UN Global Compact, the Organisation for activities access to grievance mechanisms.72 Economic Co-operation (OECD) Guidelines for International benchmarking Multinational Enterprises (OECD Guidelines), Figure 2: Key International Standards that Reference the UNGPs International Finance Corporation (IFC) International benchmarking drives increased visibility of Performance Standards and GRI Standards; stakeholder expectations of grievance mechanisms. The Corporate Human Rights Benchmark (CHRB), now part of > States, international institutions, investors and the World Benchmarking Alliance, offers stakeholders a lenders, customers and consumers, labour yearly comparison of the policies, process and practices unions, civil society organisations and impacted implemented by large companies ‘to systematise their rights-holders are some of the key stakeholders Ten Principles of the human rights approach, and how they respond to serious that expect business to implement effective UN Global Compact allegations’.73 Reflecting the UNGPs, it includes non-industry grievance mechanisms; and specific indicators that address high level commitments, > International benchmarking is increasing human rights due diligence and access to remedy.74 It visibility of business performance on human Organisation for includes implementation indicators that capture complaints rights issues. It is also enabling stakeholders to Economic Development or concerns from workers, individuals and communities.75 advocate for greater action and improvements Equator Principles and Co-operation The CHRB is increasingly being used by investors, around grievance mechanisms. Guidelines for shareholders and lenders to assess the performance of Multinational companies regarding their human rights programs and to Enterprises advocate for improved performance.76 UN Guiding Principles on Business and Human Rights International Labour Organization's Tripartite GRI Standards Declaration of Principles Concerning Multinational Enterprises and Social Policy International Finance Corporation Performance Standards 20 21 Effective Modern Slavery Grievance Mechanisms Part Two: Introduction to Grievance Mechanisms Part Two: Part Two: Introduction to Introduction to Grievance Mechanisms This section offers a broad overview of grievance mechanisms, the role that they play in supporting businesses to Grievance Mechanisms meet their responsibility to respect human rights and explanation of the different types of grievance mechanisms. Figure 3: UNGPs’ Effectiveness Criteria for Non-State-Based Grievance Mechanisms.77 Legitimate Intended users and stakeholder groups trust the mechanism. The entity implementing and managing the mechanism is accountable in their conduct of grievance processes. Accessible The mechanism is known to intended users and stakeholders. People receive adequate assistance if they face barriers to access. Predictable Users are given clear information on the procedure and likely timeframes for each stage in the process. Potential outcomes are clearly stated and the process can be monitored. Equitable Aggrieved parties can participant in the grievance process on fair, informed and respectful terms by having reasonable access to information, advice and expertise. Transparent Stakeholders are informed about the grievance process and the mechanism’s performance. Rights-compatible Outcomes and remedies align with international human rights norms and standards. Promoting Future grievances and harms are prevented by applying lessons that improve the continuous mechanism’s performance. learning Based on From the design phase to implementation and review, ongoing dialogue is used to engage engagement intended users and stakeholder groups. Dialogue is also used to facilitate redress and and dialogue access to remedy. Note: This criterion relates to operational level grievance mechanisms only. What is an effective grievance mechanism? rights impacts and responses.79 They help to identify An effective grievance mechanism is one that is trusted human rights risks early and understand how they arise, and used by the people it intends to serve. Effectiveness is so that contexts where grievances are most prevalent can critical to delivering meaningful remediation.78 The UNGPs be prioritised for improvement.80 By offering early access specify eight effectiveness criteria for non-judicial grievance to remedy, company-level grievance mechanisms can mechanisms (see Figure 3). ‘limit dispute escalation, facilitate dispute resolution and contribute to the prevention of future disputes by enhancing How do grievance mechanisms support businesses relationships and enabling systemic learning’.81 They can to meet their responsibility to respect human rights? also serve monitoring, auditing and stakeholder engagement functions.82 Grievance mechanisms help businesses to identify adverse human rights impacts in operations and supply chains and There is increased public reporting by businesses about enable their remediation. The growing focus on corporate their grievance mechanisms, particularly in relation to their accountability with respect to human rights means that accessibility and how complaints are dealt with.83 Greater businesses are increasingly expected or required — either transparency, both with users and other stakeholders, is in adherence to ‘soft’ international law standards or ‘hard’ critical to build trust around corporate commitment to respect legislative provisions — to implement policy and procedures human rights. Public reporting is one way to build trust, if to mitigate and address human rights risks. appropriate protections are in place to ensure that it does not put anyone at further risk of human rights harm. Effective grievance mechanisms, and more broadly human rights due diligence, can help businesses track their human 22 23 Effective Modern Slavery Grievance Mechanisms Part Two: Introduction to Grievance Mechanisms What are the different types of grievance State-based judicial mechanisms related crimes’.87 For businesses, addressing criminal or civil regional and international human rights bodies (which are mechanisms? State-based judicial mechanisms refer to courts and complaints from rights-holders through the courts is a costly not discussed in this report). These types of grievance The UNGPs set out a system of remedy that incorporates ombudsperson’s offices, with international arbitration also process. It can lead to reputational damage, even if a court mechanisms have the potential to offer more timely access both judicial and non-judicial, State, and non-State-based being a pathway for remedy in relation to human rights finds that a human rights breach did not occur. to remedy, cost less and can be transnational in reach.96 grievance mechanisms (see Figure 4). Rights-holders do not matters.86 These mechanisms can deliver legally binding State-based non-judicial mechanisms and non-State-based However, issues with their design and implementation – always seek direct remedy from a company for a business- adjudications and are often the final channel for rights-holders mechanisms may offer rights-holders and businesses a more which tend to occur at an operational level – can create related human rights complaint in the first instance.84 Instead, to access remedy once a complaint has escalated. However, effective means of resolving human rights complaints. These barriers for rights-holders.97 The UN Human Rights Council rights-holders tend to access remedy by whatever channels access to courts for civil matters is costly. This creates an channels can also support the resolution of grievances where reports that few non-State-based grievance mechanisms they have available to them, which at the time may not include impediment for right-holders to access a remedy. Resource there is insufficient basis for a legal claim.88 established by businesses or other stakeholders are meeting direct access to the company in question.85 While this report disparity between the rights-holders and companies can also their intended aims. Rights-holders cite significant issues in focuses on non-State-based grievance mechanisms it also hinder access to remedy via the courts. In relation to criminal State-based non-judicial mechanisms identifying, accessing and using these mechanisms.98 Access discusses State-based mechanisms given the potential for matters, the UN identifies that state prosecutors often lack to a full remedy is a particular issue, due to a mechanism’s In some instances, courts or ombudspersons may refer a rights holders to take complaints directly to them. the resources, expertise and support to uphold the obligations human rights related matter to a State-based non-judicial limited mandate, available resources, or both.99 It is incumbent of States to investigate ‘business involvement in human rights mechanism for mediation and early settlement.89 Examples of upon businesses to ensure that they go beyond mere State-based non-judicial mechanisms include: implementation of a grievance mechanism and put in place measures to ensure that it is effective in meeting its intended Figure 4: Grievance Mechanism Categories > Bodies enforcing public law standards with strong aim. fact-finding powers and ability to determine and enforce Operational (company) level and collective business-led remedies on their own initiative; mechanisms are two of several types of non-State-based > Dispute resolution bodies with some fact-finding powers grievance mechanisms. They seek to identify negative and ability to issue binding legal determinations on their impacts, provide remedy when negative impacts occur own initiative; and inform the ongoing effectiveness of a business’s > Enforcement or dispute resolution bodies with some management approach.100 fact-finding powers but which rely primarily on referring Operational (company) level grievance mechanisms to other regulators, law enforcement agencies and / or These mechanisms are typically managed by businesses judicial mechanisms for enforcement of human rights Access to Remedy related standards; and themselves, together with relevant stakeholders, or through an external body.101 Principle 29 of the UNGPs states that > Mediation-type bodies which rely for their effectiveness operational grievance mechanisms should be accessible largely on the cooperation and good will of participants, to individuals and communities who could be negatively with few (if any) investigative powers and no formal impacted by a business enterprise.102 This can include direct powers to issue legally binding determinations. For workers, contractors, subcontractors, supply chain workers instance, a sector-specific mediation mechanism and local affected communities.103 If well designed and established to respond to public concerns about adverse implemented, this type of mechanism can be the most direct human rights impacts of that sector but with no powers to and efficient means for rights-holders to seek remedy for State-Based Grievance Mechanisms Non-State-Based Grievance Mechanisms compel participation.90 harm. Unlike some State-based mechanisms, rights-holders National Contact Points, such as the Australian National do not need to meet a legal standard of evidence to access Contact Point (AusNCP), can facilitate the resolution of an operational-level mechanism. There are likely to be core human rights issues (related to the OECD Guidelines) and criteria however, that need to be met to access remedy.104 provide access to remedy. The fact that the AusNCP is not a Effective operational-level grievance mechanisms can foster court enables matters to be resolved through a more flexible engagement and dialogue with key stakeholder groups and values-driven mediation process.91 Complaints against and intended users, both in their inception and ongoing multinational enterprises can be made to the AusNCP by any functioning. They can drive continuous improvement by interested party subject to certain admissibility criteria92 and offering businesses critical feedback from rights-holders on Non-Judicial Judicial Operational-level grievance Multi-stakeholder initiatives are managed by an independent examiner with oversight by a the effectiveness of their human rights due diligence.105 They e.g. Australian National e.g. Courts, tribunals mechanisms e.g. Fair Labor Association, multi-stakeholder Governance and Advisory Board.93 also offer workers and other stakeholders a means by which Contact Point (AusNCP) e.g. Hotlines, Responsible Business to communicate issues related to the business. Such issues While State-based non-judicial grievance mechanisms offer worker voice apps Alliance a less litigious pathway, many may require parties to first may include working conditions, underpayment, extortion by access a company-level grievance mechanism.94 labour intermediaries, forced overtime, confiscation of identity documents and threats of deportation, or even more serious Non-State-based grievance mechanisms allegations such as forced labour, bonded labour, human Non-State-based grievance mechanisms both complement trafficking and child slavery.106 and supplement judicial mechanisms and State-based Whistleblower mechanisms that give employees a channel to non-judicial grievance mechanisms.95 This category includes flag a wide range of breaches of company codes and ethics mechanisms established directly by businesses, industry can also form a part of a grievance mechanism and provide a associations and multi-stakeholder groups, as well as channel for human rights complaints to be made.107 24 25 Effective Modern Slavery Grievance Mechanisms Part Three: Modern Slavery and Multi-stakeholder initiatives In this report, the term multi-stakeholder initiatives refers Key points to consider to initiatives that bring together numerous businesses and other key stakeholders to collaborate on human rights issues, Grievance Mechanisms > A grievance is a ‘perceived injustice evoking an including modern slavery. The UN Human Rights Council individual’s or a group’s sense of entitlement, which defines grievance mechanisms developed by industry, multi- may be based on law, contract, explicit or implicit stakeholder, or other collaborative initiatives as ‘mechanisms promises, customary practice, or general notions of external to companies that administer a set of commitments fairness of aggrieved communities’; 110 that the companies have agreed to adhere to’.108 Such > Grievance mechanisms offer a routine process mechanisms fall under Principle 30 of the UNGPs and can by which ‘grievances concerning business-related include grievance mechanisms as part of ‘codes of conduct, human rights abuse can be raised and remedy can performance standards and global framework agreements be sought’; 111 between trade unions and transnational corporations’.109 > The system of remedy expected from the UN Multi-stakeholder initiatives may include grievance Guiding Principles on Business and Human Rights mechanisms that are used by numerous businesses. In some (UNGPs) sets out different types of grievance instances, these may be referred to as collective business-led mechanisms: State-based judicial mechanisms, mechanisms. This report focuses on how multi-stakeholder State-based non-judicial mechanisms, and non- initiatives have been used by businesses at an operational State-based mechanisms; 112 level. Collective business-led mechanisms can also be developed at a supplier level (e.g. a factory) to enable use by > Non-State-based mechanisms include operational multiple businesses sourcing from the same supplier. (company) level grievance mechanisms and mechanisms established through multi-stakeholder initiatives; and > The UNGPs specify eight effectiveness criteria for non-judicial grievance mechanisms: legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning and based on engagement and dialogue (in relation to operational-level grievance mechanisms only). 26 27 Effective Modern Slavery Grievance Mechanisms Part Three: Modern Slavery and Grievance Mechanisms Part Three: Modern Slavery and Grievance Mechanisms What is modern slavery? Modern slavery practices (see Figure 5) seriously violate a person’s human rights and dignity112 and constitute serious crimes under Australian law.113 Importantly, modern slavery practices captured under Division 270 of the Criminal Code Act 1995 (Cth) can apply whether the conduct occurred within or outside Australia, where the offender was an Australian corporation, citizen or resident.114 Figure 5: Definitions of Modern Slavery Practices 115 Forced labour Where the victim is either not free to stop working or not free to leave their place of work. Slavery Where the offender exercises powers of ownership over the victim, including the power to make a person an object of purchase and use their labour in an unrestricted way. Servitude Where the victim’s personal freedom is significantly restricted and they are not free to stop working or leave their place of work. Debt bondage Where the victim’s services are pledged as security for a debt and the debt is manifestly excessive or the victim’s services are not applied to liquidate the debt, or the length and nature of the services are not limited and defined. Human trafficking The recruitment, harbouring or movement of a person for exploitation through modern slavery. Deceptive recruiting Where the victim is deceived about whether they will be exploited through a type of modern slavery. for labour services The worst forms Where children are exploited through slavery or similar practices, including for sexual exploitation, of child labour engaged in hazardous work which may harm their health, safety or morals, or used to produce or traffic Implementing effective operational-level grievance slavery-related concerns. Whether or not these channels drugs. The worst forms of child labour can occur in a variety of contexts and industries. This may include mechanisms to address modern slavery are effective is a separate matter. There is also a growing orphanage trafficking and slavery in residential care institutions, as well as child labour in factories and Under the Australian Act, reporting entities must include their awareness within business that human rights (including manufacturing sites, mining and agriculture. due diligence and remediation processes when describing modern slavery) complaints require a nuanced approach and their actions to assess and address modern slavery risks.128 that this should be reflected in the grievance mechanisms Forced marriage Where coercion, threats or deception are used to make a victim marry, or where the victim does not While grievance mechanisms are not expressly referred to used.133 Even businesses who choose to have a single understand or is incapable of understanding the nature and effect of the marriage ceremony. under the mandatory reporting criteria, the Guidance for grievance mechanism for all human rights complaints, may Reporting Entities identifies grievance mechanisms as a wish to consider developing distinct processes for dealing remediation process that can be employed by reporting with specific types of grievances, particularly those such as entities.129 Entities must also describe how they are measuring modern slavery that have more severe impacts on rights- Modern slavery occurs along a continuum of exploitation, States of America (USA) and the European Union. While the effectiveness of these actions.130 Businesses can use holders. where a person’s working conditions can gradually worsen the scope, coverage, reporting requirements, due diligence until they lead to slavery or slavery-like conditions.116 Often requirements and compliance mechanisms of these enacted grievance mechanisms to help them understand whether Businesses may employ several grievance mechanisms these deteriorating circumstances can leave people with few and proposed laws differ, collectively they help to expose their response to modern slavery is effective, including by that open multiple channels for direct and supply chain chances to exit.117 human rights standards in supply chains.123 analysing trends and patterns in complaints. workers to raise concerns and grievances. The European Specificity and scope Bank for Reconstruction and Development highlights that Modern Slavery Act 2018 (Cth) Key regulatory developments in Australia and The Australian Act does not require reporting entities to have relying on one approach can often be ineffective.134 For The Australian Act came into force in 2019 and aims to drive instance, employee suggestion boxes, open-door policies, overseas business action to combat modern slavery in operations a modern slavery-specific grievance mechanism (or broader The Australian Government has ratified several international remediation process) in place.131 However, the requirement or anonymous complaints processes together may form and supply chains. The Australian Act requires organisations law instruments prohibiting forms of modern slavery.118 These in the Australian Act to report on remediation processes a broader system for grievance management but alone, based or operating in Australia with an annual consolidated commitments are domiciled into Australian law in the Criminal indicates that the Australian Government expects businesses they are insufficient.135 It also highlights the importance of revenue of over $100 million to prepare annual modern Code Act 1995 (Cth). to be taking action. providing multiple communication channels so that workers slavery statements. These statements must describe modern can find an avenue they are comfortable using.136 The expectations outlined in soft law initiatives such as the slavery risks, and actions to assess and address these risks, A key consideration for reporting entities is whether to use UNGPs and OECD Guidelines are also increasingly being within the reporting entity’s global operations and supply or adapt an existing grievance mechanism to cover modern Building resilience to shocks and crises — including enshrined in domestic laws by States and governments, chains and those of their controlled entities.124 Smaller entities slavery harms, or introduce a new grievance mechanism. considerations during the COVID-19 pandemic including in modern slavery laws in California,119 the United that do not meet the revenue threshold can choose to report Generalised operational grievance mechanisms can function The COVID-19 pandemic resulted in massive disruption to Kingdom (UK),120 Australia (Commonwealth and New South voluntarily.125 Modern slavery statements are housed publicly as ‘early warning mechanisms that help prevent potentially global supply chains. Those already vulnerable to modern Wales)121 and a broader human rights due diligence law in in an online register126 run by the Australian Government.127 more serious disputes’.132 Therefore, businesses that use slavery practices, including migrant workers, are being France.122 Other countries around the world considering The operation of the Australian Act will be formally reviewed mechanisms intended to deal with human rights subject disproportionately impacted by the pandemic and are at risk modern slavery or broader human rights due diligence laws in 2022. matter (or even broader) may already provide workers and of (further) exploitation.137 International border closures due for businesses include Canada, the Netherlands, the United other stakeholders with an avenue to communicate modern to COVID-19 have meant fewer opportunities for Australian 28 29 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies businesses to conduct global audits and on-the-ground due diligence of both their own operations and supplier Key points to consider factories. Despite these disruptive impacts, it is important that businesses continue to meet their responsibility to respect > The expectations set by the UN Guiding Principles human rights, including the right to freedom from modern on Business and Human Rights (UNGPs) (and slavery. other ‘soft’ law initiatives) are increasingly being The pandemic also demonstrated the need for businesses The following case studies highlight good practice embedded into modern slavery legislation in to build resilience into the design, implementation and jurisdictions globally; examples of grievance mechanisms — at the management of grievance mechanisms. For instance, there > Under the Modern Slavery Act 2018 (Cth) (Australian operational (company) level, working in partnership are several vulnerable groups who may rely on person-to- with suppliers and multi-stakeholder initiatives — Act), organisations with an annual consolidated person engagement to lodge a grievance, including people revenue of over $100 million, based or operating in that offer channels capable of addressing modern who are economically marginalised, have lower levels of literacy, indigenous peoples and other minority groups.138 Australia, are required to report annually on modern slavery practices, for direct and supply chain workers. With limited to no capacity to facilitate face-to-face contact slavery risks within their own operations and supply Case studies are drawn from a range of sectors and chains (as well as those of their controlled entities), underscore key learnings from the Global Compact with workers in overseas jurisdictions, businesses are being and on measures taken to deal with those risks, forced to respond creatively to maintain effective grievance Network Australia (GCNA). They can support such as due diligence and remediation processes; mechanisms. One approach being taken is partnering with business to identify and address challenges and trusted local organisations, including anti-trafficking and > Effective operational-level grievance mechanisms can be used to identify and remediate modern opportunities in designing and implementing their labour rights organisations who maintain legitimate access to workers and communities and can collect and communicate slavery in business operations and supply chains; own grievance mechanisms. grievances.139 > Businesses developing and implementing an These case studies are based on interviews with Where grievance mechanisms were in place before the global operational-level grievance mechanism should apply organisational representatives and research from pandemic — and were known and trusted by workers — these the UNGPs’ effectiveness criteria; publicly available information on each organisation’s mechanisms have enabled workers to maintain critical > Effective grievance mechanisms that are known approach. They are intended as a learning access to businesses. In turn, businesses can maintain ‘eyes and trusted by workers can provide supply resource and their inclusion does not represent the on the ground’ in relation to worker conditions, where in- chain workers with an important access point to person audits are not possible. endorsement of the GCNA for the organisation or its businesses when visibility over supply chains is limited (e.g. during times of crisis); and actions. While aspects of the case studies suggest Using digital technologies can also support workers to continue to access grievance channels during the pandemic. good practice, this view is based solely on information > Supporting suppliers to develop their own For instance, utilising online worker interviews in partnership operational-level grievance mechanisms provided by organisations through interviews with representative workers’ organisations or non-government can improve a business’s human rights risk and publications. The GCNA cannot attest to the organisations (NGOs) and use of worker voice apps. management policies and procedures and its implementation of these mechanisms in practice. capacity to meet the Australian Act’s reporting Working in partnership with suppliers expectations. The Australian Act seeks to promote increased transparency in business supply chains. Section 16 of the Australian Act requires a reporting entity’s modern slavery statement to include information on its due diligence and remediation processes relating to modern slavery in its operations and supply chains. In doing so, the Australian Act creates a basis upon which reporting entities may support suppliers to develop their own grievance mechanisms which offer access to remedy to affected rights-holders in line with the UNGPs. For discussion on how businesses can support suppliers to develop their own grievance mechanisms, see Part Four of the guidance note. 30 31 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies Case Study 1: Once a worker lodges a grievance on the WOVO app, the complaint. This data is collated and consolidated by the legal NXP Semiconductors complaint is acknowledged within 24 hours. The complaint team for review and reporting to NXP’s Audit Committee on a is classified by the team administering the app, who then monthly basis. Factory management, operations committee refer the complaint on to one of the committees representing members and the Director, Corporate Social Responsibility We asked, are the grievance mechanisms that we have the operational functions of the factory. NXP clarified that have access to this data. in place actually enabling the people who in instances where a worker has a workplace harassment Expectations on suppliers around remediation are most vulnerable within the organisation — workers — issue to report, the most appropriate mechanism to use is processes to voice their concerns? And the answer to that was no, the Speak Up hotline, where independence and anonymity are In addition to its own Code of Conduct, which prohibits child Operational-level Working in partnership we need to find better solutions or tools to engage.’ assured. The WOVO app was identified by NXP as the more grievance mechanism with suppliers and forced labour,148 NXP requires suppliers to adhere to its appropriate mechanism for workers reporting grievances on Tony Khaw, Supplier Code of Conduct (Supplier Code), and requires that workplace issues. In these instances, the site from which the Director, Corporate Social Responsibility, NXP their own suppliers also follow the Supplier Code.149 NXP’s grievance was raised will receive support from management suppliers (and their suppliers) must make an anonymous Industry: Technology, telecom and electronics and assigned site functional representatives to review and complaint mechanism available to their workers in alignment improve the conditions being reported. NXP reported that it with local laws and regulations.150 All supplier employees must About considered independence to not be critical to the resolution be fully informed and understand the policy of non-retaliation Headquartered in the Netherlands, NXP Semiconductors video call, enabled NXP to continue to share the Speak Up of these types of grievances. It is the assigned committee that applies to complainants.151 Additionally, management (NXP) designs and manufactures semiconductor hotline card with supply chain workers. Workers would be that decides who in the organisation is best placed to address system standards require suppliers to implement an effective technologies that are applied across the automotive, digital shown the card and were asked to take a screenshot during the complaint. Once this triaging has taken place, the worker grievance mechanism capable of collecting feedback on networking and secure identification industries. NXP has confidential interviews without management present so they making the complaint is given an estimate on how long it or violations against the Supplier Code.152 This includes a manufacturing sites in Malaysia, Thailand, Singapore, China, would have access to hotline number and non-retaliation might take to resolve the matter. On average, 60 per cent of requirement to assess worker understanding of the Supplier Taiwan, USA and the Netherlands.140 information. complaints are addressed in less than one week, 16 per cent Code. in less than two weeks and 24 per cent in more than two weeks. These turnaround times reflect the relative complexity NXP reported conducting training with suppliers to build NXP grievance mechanisms WOVO worker voice app awareness of the Supplier Code. This training focuses on of the grievances reported, which have not yet related to NXP’s ‘Speak Up’ hotline NXP uses a continuous cycle of review and reflection to salient modern slavery risks (e.g. forced labour) in its supply modern slavery practices. NXP’s ‘Speak Up’ hotline enables NXP employees to report assess the effectiveness of its grievance mechanisms. chains. A supplier portal is presently being developed for Assessments of initial processes (e.g. suggestion boxes and The WOVO app also allows NXP to broadcast operational violations against the NXP Code of Conduct, including suppliers to enable two-way communication and for NXP to open-door policy) were found to be ineffective in capturing announcements to workers at the Kuala Lumpur modern slavery grievances affecting individuals. It is also update suppliers on new requirements. serious concerns and complaints from direct workers. This, manufacturing site. There is also scope for training modules available to supply chain workers. The hotline is facilitated to be offered through the app in the future. NXP assesses the presence and efficacy of grievance combined with the use of the Speak Up hotline for unrelated and managed by a third-party. The legal department of NXP mechanisms used by suppliers when conducting site and minor complaints, prompted NXP to develop a tool that Avoiding the escalation of complaints and helping to is the main gatekeeper for all anonymous reports received assessments. When it observes practices that do not align was specific to receiving and managing operational-level identify human rights issues through Speak Up. It is responsible for channelling these with the Supplier Code it directs suppliers to rectify these grievances. It was observed during site visits that most NXP employs several dialogue-based forums to monitor and reports to the respective compliance managers in the issues. For example, NXP reported seeing suggestion boxes workers use smart phones, which led to NXP engaging a third develop its human rights approach. Forums include quarterly company for investigation and resolution. Direct and supply being placed under the surveillance of security cameras. party to create a mobile-driven, two-way communication app coffee talks and dialogue sessions, and open-door policies chain workers receive a business card with non-retaliation This, in turn, meant workers were not comfortable using called ‘WOVO’. where workers can alert site general managers of concerns information and a local toll-free number and email address them because the mechanism did not allow for anonymous during audit-related private worker interviews.141 These Piloted at the Kuala Lumpur manufacturing site in Malaysia directly.144 These can help issues to be addressed before they reporting. business cards are translated into different languages to with NXP’s direct workers, the WOVO app has so far captured escalate into potential human rights abuses and more serious 47 complaints that have required additional investigation.143 complaints. Modern slavery disclosures ensure accessibility to migrant workers.142 To date, none of these grievances have related to modern NXP makes modern slavery disclosures under the Modern This hotline was used by a foreign migrant worker in Taiwan Communicating with workers about grievance Slavery Act 2015 (UK) (UK Act) and Transparency in Supply slavery practices. to report that they were overcharged for dormitory services mechanisms Chains Act 2010 (California). In its 2019 Modern Slavery and The WOVO app aims to create greater access to grievance NXP notifies workers of its operational grievance by an NXP supplier. NXP reported working with the supplier to Human Trafficking Statement, NXP reported that its salient processes for direct workers, particularly migrant workers mechanisms and zero tolerance policy against retaliation investigate the issue (which uncovered other instances of the modern slavery risks, in relation to operations and supply who are most vulnerable to modern slavery practices such as during the recruitment process.145 When on-boarding, workers same practice) and remediating the matter, with the people chains, were forced labour, bonded labour and child labour.153 forced and bonded labour. Workers installing the app on their undertake training about protections for people who lodge a affected being repaid by the supplier. While it reported no incidents in relation to these risks within phones must give NXP consent for their phone number to be grievance or report Code of Conduct violations.146 Posters are NXP also provided an example of use of the hotline in 2020 associated with a personal protection code, which is used to its operations, NXP disclosed that 38 per cent of suppliers also used at manufacturing sites to notify direct workers of audited were found to charge fees (e.g. recruitment fees).154 during the COVID-19 pandemic to identify and remedy a verify claims that originate from NXP direct workers. At the the grievance mechanisms available. The holding of workers’ personal documents by a supplier worker welfare-related incident. A cafeteria worker in an NXP time of reporting, 95 per cent of workers at the pilot site had owned and operated factory in Malaysia, with outsourced downloaded the WOVO app. Measuring effectiveness was also found.155 At the time of reporting, almost all affected cafeteria services, lost their employment during the pandemic NXP receives feedback on the effectiveness of its grievance workers had received remedy, with only one supplier failing NXP intends to make the WOVO app available to direct to repay fees to workers. NXP reported continuing to engage and was to return to their home country. Due to border workers at its other manufacturing sites globally and is mechanisms during audits and assessments, such as by closures, this worker, along with colleagues, were stranded interviewing workers on how they would choose to report this supplier in ongoing dialogue to resolve the matter.156 interested to explore its applicability to supply chain workers. More broadly, NXP reported auditing beyond the first tier of in Malaysia. NXP reported working closely with the cafeteria Implementation of the app has required significant on-the- grievances.147 Data analytics are collected on the number service contractor, and a civil society organisation that of grievances received by Speak Up hotline and the WOVO suppliers in its supply chain.157 It also discloses data on the ground resourcing, which was hindered during the pandemic. grievance mechanisms it uses. supports migrant worker communities in Malaysia, to provide NXP explained that a high level of commitment and effort is worker voice app, including the demographics of where the the stranded workers with material support. required to ensure that the app is implemented effectively. For complaints originate (e.g. direct or supply chain workers) The COVID-19 pandemic prevented NXP staff from instance, ensuring that feedback received via the app is acted and turnaround time in initially responding to and closing a undertaking on-the-ground supplier factory audits for much upon within a timeframe that reflects best practice to build of 2020. Use of online audits, including worker interviews via trust with users. 32 33 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies GCNA's key learnings Challenges Opportunities > Ensuring access to grievance mechanisms for > Despite the resource intensity required in their vulnerable direct workers and workers in the supply establishment, worker voice apps, like WOVO, are chain is a primary challenge. Engaging effectively scalable. with tier two and three suppliers can help to ensure > The effectiveness of worker voice apps depends upon there is access to effective remedy for affected the management systems that sit behind the app. vulnerable workers in supply chains. Ensuring clear lines of responsibility in relation to the > While worker voice apps offer a novel way to build receipt, classification and management of grievances accessibility, they require a high level of on-the- lodged is critical while also ensuring that these lines ground resourcing to be effectively implemented. do not impact on the legitimacy of the mechanism including the level of trust from workers in the mechanism. Care should be taken in setting up lines of responsibility to avoid conflicts of interest. > Quick acknowledgement of the receipt of complaints via a grievance mechanism and notifying the aggrieved person of the approximate turnaround time helps to build trust for the mechanism and in how complaints are handled. > Audit-related private worker interviews are a valuable opportunity to share information about grievance mechanisms with direct and supply chain workers. > The value of simple forms of communication like business cards should not be underestimated. > Working with suppliers to investigate grievances and remedy instances of breach is central to an effective system of remedy. 34 35 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies Case Study 2: Measure effectiveness Country Road Group Key measures of effectiveness that Country Road and David GCNA's key learnings and David Jones How the factory level grievance mechanism will Jones intend to use once its grievance mechanism is fully implemented are, whether workers know that it exists and Challenges operate once introduced whether they can use it. The effectiveness of training in streaming more egregious concerns through the grievance > Navigating the varying literacy levels of supply Country Road and David Jones explained that the pilot mechanism would also be assessed. Additionally, key chain workers and their access to smart phones grievance mechanism will utilise a digital messaging performance indicators would be designed to determine is important to help ensure access to a grievance platform. Posters (to be located on the back of bathroom how quickly suppliers act on issues and work through the mechanism; doors) and business cards (to be distributed to all workers in the factory) are written in Mandarin, with posters including remediation process. > Building trust with supply chain workers and Working in partnership prompts on the types of issues that workers might report management at the pilot site is also important to with suppliers Expectations on suppliers around remediation through the mechanism. Workers will be able to access the help ensure access to and use of the grievance processes digital platform via a QR code that is located on the poster mechanism; Country Road and David Jones reported that all their and business card. Alternatively, workers will also be able to suppliers and service providers are bound by their Code of > It can be challenging to know how to deliver Industry: Retail access the mechanism via phone or email. effective training for intended users of a grievance Labour Practice (the Code),159 which aligns with the ILO’s The grievance mechanism will be managed internally by conventions on ethical trade and the Ethical Trading Initiative mechanism, including training on when to use the About mechanism and when to use other complaints Country Road and David Jones Ethical Sourcing Specialist (ETI) base code. The Code establishes a minimum standard The Country Road Group and David Jones businesses who has been tasked with developing the pilot project. channels; and of operations and prohibits forced, bonded and child labour.160 (Country Road and David Jones) are Australian fashion Country Road and David Jones stated that it is important > COVID-19 restrictions have prevented visits to pilot Country Road and David Jones reports that regular social retailers comprised of multiple brands. They source their to have protocols in place that protect a worker’s identity, locations, impacting the set-up of the mechanism. compliance checks to assess compliance with the Code apparel and accessories from suppliers in China, India, Italy, validate and assess the issue, and ensure an effective are undertaken through independent auditors. The Code Thailand, Bangladesh, Indonesia, Portugal, Vietnam and resolution. A key issue identified by Country Road and David does not contain any expectations about establishing and Opportunities Australia.158 They are part of the Woolworths Holdings Limited Jones was clarifying the lines of responsibility between implementing grievance mechanisms. Group which is based in South Africa. > Leveraging long-term relationships with suppliers, Country Road and David Jones, and the supplier in the Modern slavery disclosures fostering trust and a collaborative approach can be operation of the grievance mechanism. Developing a grievance mechanism pilot in Country Road and David Jones make modern slavery key to gaining a supplier’s support to establish a partnership with a supplier disclosures under the Australian Act. At the time of finalising grievance mechanism; and ‘Where does our responsibility start? ...We’re not trying this report, the 2020 Modern Slavery Statement had not yet > Building supplier ownership of a factory level Aims and approach to take on those issues as our own, it’s more that we want been released. grievance mechanism begins at the design phase. Country Road and David Jones described using a to empower the factory to work through them. We would collaborative approach and their leverage with suppliers to want the factory to own any issues that happened. develop a pilot for a factory-based grievance mechanism We wouldn’t automatically leave if there was a problem. ‘One of the big challenges that keeps coming up with in China for supply chain workers. They acknowledged Our goal would be to remediate.’ regard to the development of grievance mechanisms that while companies can mandate requirements on Sebastian Conley, globally is whether workers in factories actually suppliers through a code of conduct, creating a collaborative Sourcing Operations Manager, Country Road Group understand what it means in their own language.’ environment with shared values, in which suppliers are on Sebastian Conley, board and share the aspirations of the company, will more Sourcing Operations Manager, Country Road Group effectively address modern slavery risks. The pilot involves partnering with one key supplier in China, Training with whom Country Road and David Jones have a long-term Country Road and David Jones recognise that for the business relationship. In addition to leverage and trust, the grievance mechanism to be effective, the supplier — businesses identified the supplier as having an open and including its workers, human resources and corporate social innovative mindset as critical factors supporting the pilot. responsibility management — would need to know it existed, understand the scope of subject matter that it addresses and Prior to designing the grievance mechanism, Country Road know how to access it. They are working with management and David Jones worked with the pilot factory to investigate in the supplier factory to develop a training program that the literacy levels of its workers and their access to smart incorporates existing human resources channels that workers phone technology. It was found that approximately 90 per can use to lodge minor complaints and introduces the new cent of workers were literate in Mandarin and that almost all grievance mechanism, which is intended to deal with more staff had access to a smart phone. Country Road and David egregious issues. A key component of this training will be Jones described taking a culturally sensitive approach in informing workers of the types of grievances that are best designing the grievance mechanism. They aim to increase the addressed by the new mechanism. The training is designed to efficacy, use of, and trust in the tool, while being committed be facilitated by the factory-based worker committee, to build to ensuring that all complaints can be made free from fear of worker trust. retribution. The grievance mechanism is still in development, with ongoing research being undertaken into the right tools and processes to implement and scale the mechanism. Once implemented and evaluated, Country Road and David Jones hope to use the pilot to encourage other suppliers to implement the grievance mechanism in their own factories. It is intended that the grievance mechanism will be scaled up and implemented in partnership with further suppliers across both businesses. 36 37 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies Case Study 3: Both Thai Union workers and supply chain workers are Thai Union Group protected from retaliation and are required to have access to GCNA's key learnings fair procedures by which to lodge and resolve a grievance. The In 2019, Thai Union initiated a donor funded ‘Tell Us’ project, Supplier Code requires suppliers to make effective channels through which to lodge grievances accessible to workers. Challenges in partnership with the fair labour and research civil society organisation Verité. Tell Us aims to strengthen internal Specific channels vary across suppliers depending on what > There is a lack of visibility in what happens at sea. worker voice mechanisms in five key processing facilities mechanisms they have put in place. In turn, grievances need Supply chain workers on fishing vessels are faced in Thailand. Thai Union reported that the program aims to be fully investigated and a fair and unbiased resolution with communication challenges that can isolate Operational-level Working in partnership to raise the capacity of human resources staff to capture, reached. Grievance mechanism channels are also required them and leave them with little to no channel for grievance mechanism with suppliers investigate, and provide remediation for complaints raised by to be widely communicated and anonymous, guaranteeing raising grievances, particularly if using external workers.163 Critically, the program supports human resources confidentiality and non-retaliation.164 channels. staff receiving grievances through whichever channels they Thai Union delivers annual training to suppliers in Thailand to > The COVID-19 pandemic has restricted travel and Industry: Seafood product producer are received (including Speak Out) to learn how to effectively build understanding of its human rights policies. The training factory visitation preventing third-party auditors classify and respond to grievances and build user trust in the is broad and does not specifically cover how to address from conducting factory site visits. This has further About mechanism. For example, the standard operating procedures grievances. decreased the visibility of issues faced by workers. Headquartered in Thailand, the Thai Union Group (Thai Union), for handling grievances are communicated to workers so they Thai Union reports engaging with the Migrant Worker Rights is a producer of seafood-based food products. It incorporates know there are standards in place. A non-reprisal policy was Network to protect the rights of migrant workers who are Opportunities brands such as John West (UK), SEALECT, Mareblu, Petit another outcome of the project that aimed to build trust with most vulnerable to modern slavery in the fishing industry.165 > Working in partnership with external stakeholders Navire, Chicken of the Sea and Genova. As a processor of workers. This collaboration has involved promoting and supporting can support businesses to overcome challenges seafood, Thai Union does not own or operate fishing vessels, Thai Union reported that reimbursement of recruitment fees the election of migrant workers onto worker committees to in addressing their responsibility to prevent and instead relying on suppliers for its product. is one remedy it facilitated in its work with labour recruiters. ensure that their voices are represented, and interviewing address modern slavery; External hotlines workers to investigate issues such as the payment of > Proactive approaches can be used to prevent issues Grievance mechanisms recruitment fees. Thai Union also stated that it engages with Thai Union promotes several third-party hotlines to its direct from escalating into instances of modern slavery; Thai Union promotes all feedback from workers, not only the International Transport Workers Federation and Labour and supply chain workers via its website. These include > Grievance mechanisms can uncover systemic grievances. This has influenced its choice of worker voice Promotion Network to support the protection of worker rights. hotlines operated by the Thai Ministry of Labour, Thai National issues that can be remedied using creative mechanisms which capture a broad range of issues, Thai Union is currently working with its suppliers to help their Human Rights and ISSARA Institute (an independent NGO approaches; including modern slavery practices, worker welfare issues, workers understand their employment contracts. tackling human trafficking and forced labour). Thai Union > Building the capacity of human resources staff can general working conditions and facilities. While its grievance reported a commitment to providing or facilitating access to Thai Union identified that travel and factory visitation help to capture, investigate and provide remediation mechanisms have detected indicators of modern slavery, remedy for complaints that arise though all channels, not just restrictions in response to the COVID-19 pandemic have for complaints; and broader human rights issues and suggestions for workplace internal mechanisms. It reported regularly conducting worker meant that third-party auditors are not able to conduct improvement, no actual reports of modern slavery practices > Promoting and supporting the election of migrant satisfaction surveys to check whether workers are happy with factory site visits. This has decreased the visibility of issues have been lodged by workers. workers onto worker committees, can help to how grievances are handled. faced by workers. Thai Union’s fishing vessel audit program Internal channels ensure that their voices are represented and that has also been halted and been temporarily replaced with Thai Union has developed several grievance channels, there is another forum in which migrant workers can Measuring effectiveness virtual audits. Thai Union acknowledges that this is not an including a human resources clinic, a phone line that allows lodge complaints. Thai Union stated that it broadly draws on the UNGPs’ adequate long-term replacement of in-person worker audits. workers to text or speak with human resources directly, effectiveness criteria for assessing the effectiveness of its The postponement of in-person health and safety training for elected worker welfare committees that hold meetings grievance mechanisms, but also that the criteria are not fishing vessel owners — due to the inability to facilitate this to discuss worker welfare issues, suggestion boxes and applied prescriptively. Thai Union measures the effectiveness hands-on training online — was also identified as a challenge. a hotline. Each Thai Union facility tends to have at least of its operational-level grievance mechanisms at a factory two of these grievance channels available to workers. Thai level. It collects data on the number of complaints raised Modern slavery disclosures Union cited proactive channels (such as human resources through internal and external channels and the recurrence of Thai Union makes modern slavery disclosures under the UK representatives speaking with workers on the factory floor) as grievances. Act. Following its 2019 survey of major tuna brand owners, one of the more effective channels for capturing grievances, the Business and Human Rights Resource Centre reported Thai Union assess user perceptions of the effectiveness of as issues can be caught early before they escalate. Thai that Thai Union had strong disclosure of its policies, process its grievance mechanism. In its survey of overall working Union chooses to direct its grievance channels internally and actions taken to address modern slavery in supply conditions, Thai Union asked whether staff are happy with to human resources, to increase direct employer-employee chains.166 the complaints process and the outcome of investigations. dialogue and trust. It identified scope for improvement in this process, including Thai Union has reported modern slavery concerns raised by a ‘Speak Out’, Thai Union compliance hotline asking more targeted questions about how grievance third party.167 Its reporting also identifies no receipt of modern Launched in 2019 and operated by a third-party, Thai Union mechanisms could be improved. slavery complaints via its grievance mechanisms. promotes its ‘Speak Out’ compliance hotline161 to direct and supply chain workers, contractors and clients globally. The Working with suppliers and external stakeholders hotline is promoted using internal communication channels, Thai Union reported that it has mapped its tuna supply chain such as mass emails to employees, posters and social down to the level of fishing vessels. media. The anonymous service is available in 15 languages Thai Union prohibits modern slavery practices, including and offers a toll-free phone number and web-based channels forced and child labour, in its Supplier Code and Vessel Code for reporting grievances. Based on its 2019 Sustainability of Conduct. Report, Thai Union reported receiving nine grievances via this mechanism, with seven matters closed and two remaining in progress at the time its report was published.162 38 39 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies Case Study 4: Designing a grievance mechanism with greater reach ABN AMRO Bank In 2019, ABN AMRO announced it would take a first step GCNA's key learnings towards establishing an independent bank-level grievance In practice, when one or several indictors for modern slavery mechanism, open to affected stakeholders and their Challenges are triggered, these findings are automatically shared with legitimate representatives impacted by the actions of ABN AMRO’s Security and Integrity Management department, corporate clients. Since then, it has reported engaging in > Determining what level of responsibility the bank whose analysts undertake additional research. Depending dialogue with external and internal stakeholders to scope the has in relation to the activities of a corporate clients, on the findings of this research, a case may be submitted mechanism and identify key issues to be addressed in the especially regarding the provision of remedy. Operational-level to the Dutch Financial Intelligence Unit for handling by law mechanism’s design. > Assessing the effectiveness of a corporate client’s grievance mechanism enforcement agencies. External stakeholders engaged to date include civil society grievance mechanisms when they struggle to organisations, trade unions, human rights experts working align their grievance mechanisms with the UNGPs' Lending to corporate clients with ABN AMRO clients, the Dutch Banking Association, effectiveness criteria and when banks do not Industry: Banking and Finance As a lender, ABN AMRO reported that it requires its corporate peers, academics and human rights lawyers. ABN AMRO conduct due diligence on the ground in lending clients in high-risk sectors to have grievance mechanisms identified that the non-profit organisation Shift — a non-profit relationships. About in place. Grievance mechanisms do not need to be specific organisation focused on providing expertise on the UNGPs — > Lack of transparency around client relationships ABN AMRO Bank NV (ABN AMRO) is headquartered in to modern slavery but must be able to capture human has been extensively involved in this process. Internally, the can be a potential barrier for individuals and the Netherlands. In 2016, it reported being the world’s first rights related complaints. A key challenge is assessing the bank has involved staff from sustainability, environmental communities to access remedy through a secondary financial institution to apply the UNGPs' framework to its effectiveness of these mechanisms. Clients may struggle and social risk management, commercial, legal and public (e.g. bank operated) grievance mechanism. human rights reporting.168 ABN AMRO operates retail banking with ensuring their grievance mechanisms align with the relations teams in the development of the grievance activities across the Netherlands, a corporate banking UNGPs' effectiveness criteria and banks do not conduct on- mechanism. Opportunities practice focused on North-West Europe and private banking the-ground due diligence in most lending relationships. This ABN AMRO identified a key question underpinning this > Using data analysis of financial transactions to activities across the Netherlands and North-West Europe.169 means that banks must ask the right diagnostic questions to exercise: What is the role of the bank in relation to potential detect modern slavery practices. assess effectiveness. adverse human rights impacts that are identified through Detecting modern slavery victims within retail > Using leverage with corporate clients to ensure that ABN AMRO identified a responsibility to use its leverage with the mechanism? It explained that much consideration is customers access to remedy is provided. corporate clients to ensure that access to remedy is provided. required, on a case-by-case basis, of when the bank might Analysis of retail customer accounts is a unique way that The responsibility of the bank to remedy a human rights assume responsibility for potential harms or act as a > Lenders working with stakeholders to design a banks can identify instances of modern slavery. In its role as breach depends upon whether it has contributed to, or is facilitator and mediator. It also considers what role it might bank-operated grievance mechanism that can a service provider to retail customers, ABN AMRO reported directly linked to, an action taken by a corporate client.172 In its play in enabling access to remedy to rights-holders. Another be accessed by affected stakeholders and their on its capacity to detect, flag and provide evidence of modern Discussion Paper: Working Group Enabling Remediation, the question being explored by ABN AMRO is how to effectively, legitimate representatives impacted by the actions slavery to support criminal prosecutions. In doing so, ABN Dutch Banking Sector Agreement identifies that ‘the specific and on what basis, they can engage corporate clients in the of corporate clients. AMRO can support the judicial enforcement of human rights steps that may be available or appropriate for a bank to take implementation of the grievance mechanism. abuses and contribute to access to remedy for victims of in a specific situation will depend on a number of factors, ABN AMRO reported applying the UNGPs to the process modern slavery, for instance, through providing evidence that including the type of financial relationship that connects a of developing its new grievance mechanism. It explained can lead to a conviction and result in punitive sanctions. bank to an impact, the types of leverage the bank may have, that some effectiveness criteria, particularly accessibility, ABN AMRO uses data analysis of financial transactions to and the roles being played by other relevant actors’.173 At were more difficult to implement than others. Accessibility detect modern slavery practices, including human trafficking the time the discussion paper was published, there were no issues, in part, stem from transparency issues identified and exploitation of migrant workers, with its retail account known examples of private commercial banks implementing above, as well as corporate clients and potentially affected holders.170 It is important to note that these instances of grievance mechanisms to capture complaints connected to rights-holders being in jurisdictions far from the bank’s modern slavery are not necessarily connected to the conduct client activities.174 This is an issue that ABN AMRO has sought headquarters. of ABN AMRO’s business clients. Instances of modern to address in partnership with stakeholders. slavery that are detected through data analysis of financial Client confidentiality clauses often mean that banks cannot Modern slavery disclosures transactions are not necessarily caused by, contributed to, or disclose which companies they finance. ABN AMRO identified ABN AMRO undertakes modern slavery reporting under the directly linked to the actions of ABN AMRO. this lack of visibility to external stakeholders as a potential UK Act. The bank identifies labour rights as one of its salient ABN AMRO reported that initially, the detection of modern barrier to giving those affected by client actions access to human rights risks.177 It reported that its potential exposure to slavery was often a ‘by-catch’ of money laundering remedy through a bank-level grievance mechanism. ABN modern slavery risks is highest through the services it offers investigations. In recognition of this it developed, in AMRO identified that the expansion in scope of a lender’s to corporate and retail clients.178 Client related investments partnership with the Inspectorate of the Dutch Ministry grievance channels to offer remedy to stakeholders impacted (e.g. corporate bonds, equity and other financial products) of Social Affairs and Employment and the University of by client activities had two key drivers: the matter against also expose ABN AMRO to modern slavery risks.179 Amsterdam, over 25 indicators to flag potential modern ANZ reported to the AusNCP regarding the Phnom Penh slavery victims. The project has now become a public-private Sugar case,175 and the 2019 OECD report Due Diligence for partnership (PPP) with the Dutch Government.171 The long- Responsible Corporate Lending and Securities Underwriting.176 term aim of the PPP is to make the identification of potential victims a central focus of banking due diligence. Since this project was initiated, these indicators of modern slavery have been adopted by five other banks in the Netherlands. 40 41 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies Case Study 5: Investigating complaints Fair Labor Association Once a claim is accepted for investigation, the affiliated GCNA's key learnings company is informed about the complaint and has up to 45 Third Party Complaint Procedure days to carry out an internal investigation. The company can Challenges Overview choose to conduct the investigation themselves, or to engage an independent, third-party investigator — which generally is > In relation to the Third Party Complaint Procedure The FLA makes the Complaint Procedure available to (Complaint Procedure), an inability to have seen to carry a higher level of credibility. Based on the findings workers in factories operated by, or in the supply chain of, investigators conduct physical investigations, of this investigation, the FLA will determine whether further all affiliated companies, including participating companies conduct interviews or review records in factories Multi-stakeholder assessment of the complaint is required. initiative and participating suppliers. Grievances, including those in (due to COVID-19 restrictions) limited the relation to forced and child labour, can be lodged through Remediation identification of grievances throughout 2020 and the Complaint Procedure in instances of a Workplace Code If the investigation determines there is a significant likelihood early 2021; violation. The FLA emphasised that the Complaint Procedure of non-compliance with the Workplace Code, the FLA will then About > Participating companies are reporting less visibility does not seek to replace or compete with factory-level work alongside the affiliated company to develop an effective Headquartered in the USA, the Fair Labor Association (FLA) is of the conditions in factories and that brands are no grievance mechanisms and State-based judicial and non- remediation plan, which must be implemented to the FLA’s a multi-stakeholder initiative that brings together universities, longer able to conduct physical audits; judicial remedies. This grievance mechanism is meant to be satisfaction.189 Implementation is checked through active civil society organisations and socially responsible > Retrenchments and partial and full factory closures a last resort when other channels have been ineffective in engagement with the FLA member company. Complainants companies to improve working conditions and protect due to the COVID-19 pandemic have limited delivering remedy. are also able to track the implementation of the agreed workers’ rights globally.180 The FLA administers a Third Party the capacity to address the marked increase in Making a complaint remediation plan. This may include requesting updates on Complaint Procedure (Complaint Procedure) that is accessed enquiries; and how the factory is making the corrective actions needed. The by individuals, organisations and groups ‘to report serious Complaints can be made by workers and their advocates, FLA is starting to move towards written verification reports > Limited resourcing constrains the capacity to have violations of workers’ rights in facilities used by any company including trade unions and civil society organisations. that will be published on their website, but this is not yet a staff on the ground to support workers and work that has committed to FLA labour standards’181 The FLA enables affected workers and their advocates formal requirement. with advocate organisations in some countries. to make complaints via email, mail, telephone, telephone The FLA may determine that no suitable resolution is possible Fair Labor Association affiliation and accreditation message and fax. Complaints can also be made via another through a remediation plan, in which case, it can propose a Opportunities Businesses that join the FLA commit to upholding the FLA institution that could reasonably be expected to pass the different safeguard mechanism.190 Participating companies > The Fair Labor Association (FLA) promotes Workplace Code of Conduct182 (Workplace Code) and the information to the FLA, such as accredited monitors.188 are expected to prepare a remediation plan within a set period, transparency using the complaint Tracking Chart194 Principles of Fair Labor and Responsible Sourcing183 or the The FLA observed that, to date, most of the complaints it which enables the affected parties to monitor the progress and predictability by providing users with the Principles of Fair Labor and Responsible Production184 in receives are from factory settings. But in the future, there of the remedy being implemented.191 This process promotes Complaint Procedure, with information about the their supply chains. Companies that affiliate in the FLA’s could be a growing number of complaints emerging from transparency and predictability of the Complaint Procedure. process and timeframes for the resolution of their ‘participating company’ and ‘participating supplier’ categories the agricultural sector. It has also observed a high number of are assessed regularly against FLA Principles. Businesses Remedies for past complaints include: complaint; complaints emerging from Central American countries where that successfully implement these principles and Workplace there is a strong presence of FLA staff on the ground who > Recognition of trade unions; > The FLA’s collective approach effectively leverages Code standards can be accredited by the FLA.185 foster good working relationships with stakeholders including > Reinstatement of unfairly dismissed workers with back influence with factories; Both sets of FLA Principles require participating companies unions. The FLA reported that in this region there tends to pay; > A strong FLA staff presence in some countries and participating suppliers to commit to ensuring that be higher levels of trust in the fair resolution of complaints. > Initiatives to improve labour management relations at the enables more grievances to be captured including workers ‘have access to functioning grievance mechanisms, In other places, such as India, the FLA is aware of worker factory level; and during the COVID-19 pandemic; and which include multiple reporting channels of which at least concerns, but fewer complaints have been received. Fear of > Strengthening country and regional capacity to repercussions and less union activity were cited as factors > Delivering training and education programs for one is confidential’.186 These mechanisms are separate have strong unions can strengthen the protection of that may underpin this trend. management and workers.192 from the complaint procedure managed by the FLA. The worker rights and make the grievance mechanism FLA observed that many of the operational-level grievance To promote transparency, the FLA publishes the investigative Threshold requirements more effective. mechanisms available to the workers it encounters are reports as well as summaries of each assessment on their Complaints received through the Complaints Process are website.193 ineffective, in part because they are not trusted by the assessed by FLA staff. Claims should contain reliable, workers. Given the sensitivity of the issue, the FLA reported specific and verifiable evidence or information that an alleged that instances of forced labour are difficult for workers to non-compliance with the Workplace Code has occurred. ’Brands have said to us how important our established report via grievance mechanisms. The FLA explained that Additionally, complaints must meet the standard of systemic complaint mechanisms are, because they may be the well-functioning grievance mechanisms require capacity or persistent non-compliance and there must not be an only channel for workers to actually submit grievances building with suppliers and brands and attention paid to existing State-based judicial grievance mechanism that is and complaints.’ cultural, operational and systemic issues affecting these viable and non-biased that can address the complaint and Eric Biel, processes. It is working with participating companies and deliver an effective remedy in a reasonable amount of time. Senior Advisor, Fair Labor Association suppliers to help improve their implementation of operational- level grievance mechanisms. The FLA cannot accept complaints that are outside the scope of the Complaint Procedure, for example, where The FLA Workplace Code explicitly prohibits forced, bonded a factory does not produce goods for an FLA-affiliated and child labour.187 Participating companies and suppliers are company. However, it will almost never reject a complaint bound by this code. that is not specific enough. The FLA explained that it is currently developing a one-page graphic explainer in different languages to make clear how a complaint can be submitted. In circumstances where a complainant’s report does not contain the required threshold of information for an acceptable claim, FLA staff will support that person (where possible) to meet these threshold requirements. 42 43 Effective Modern Slavery Grievance Mechanisms Part Four: Case Studies Case Study 6: organisation. In its initial rollout, utilisation was low due to the Responsible Business Alliance limited number of factories involved and unfamiliarity with the GCNA's key learnings helpline. > Workers have access to grievance mechanisms in their To respond to this situation and build accessibility and Challenges native languages; adoption, the RBA reported employing several approaches. Firstly, it worked with buyers to place greater expectations > The global COVID-19 pandemic made workers more > The mechanism is well advertised — this includes workers vulnerable at a time when civil society organisations being given written information about how to access the on businesses to make available and promote the helpline. Secondly, it worked with the Malaysian civil society are limited in their ability to support the work of the grievance mechanism; Responsible Business Alliance (RBA); and Multi-stakeholder organisation staffing the helpline to undertake outreach with initiative > Workers can report grievances and complaints without > Audits are taking place in a limited capacity, or via workers to promote it. This was done with the explicit aim of fear of reprisal; remote technology, due to COVID-19 restrictions. building worker trust for the helpline. > The member being audited promptly investigates the Given that more serious breaches of the RBA The RBA credited civil society with the idea of grassroots About validity of a complaint or grievance and takes prompt Code (such as forced labour) are more commonly socialisation, which is perceived as highly effective in building Based in the USA, the Responsible Business Alliance (RBA) remedial action for a valid claim; detected through these two channels, fully trust and engagement with the helpline. The helpline is now is the world’s largest industry coalition working to promote > The identity of those making a grievance or compliant is available to all members of the RBA and its Responsible Labor functioning worker grievance models are especially corporate social responsibility in global supply chains.195 protected; and Initiative (RLI) for implementation in their supply chains, with important. Its members, which include electronics, retail, auto and > Records of grievances and complaints are retained for a the addition of special protocol enhancements related to the toy companies, commit and are held accountable to the minimum of 12 months.200 global health pandemic. Finally, the RBA is exploring targeted Opportunities RBA Code of Conduct (RBA Code). The RBA Code is also advertising through social media channels to promote the Third-party audits under the VAP and SVAP are one way in > Leveraging relationships with factories can ensure considered a ‘complete supply chain’ standard where helpline. These methods have led to increased use of the which effective grievance mechanisms can be evaluated. more efficient and effective access to grievance members and suppliers of members are expected to cascade helpline. In addition to this, the RBA makes several other grievance mechanisms for direct workers and workers in the requirements to their suppliers. channels available to workers directly employed by members The RBA reported that it plans to promote the helpline supply chains, particularly when trust has not yet or in their supply chains. through its Responsible Recruitment Program and make it been built for third-party grievance mechanisms; RBA Code of Conduct mandatory for participating recruiters to raise awareness of > Worker-centric design and implementation Forced labour, bonded labour, child labour, slavery and and socialise the helpline amongst the workers they recruit. RBA and third-party grievance mechanisms considerations (such as multiple platforms and trafficking of persons are prohibited under the RBA Code, The RBA explained that workers from member businesses, RBA worker voice platform translations in local languages) are critical to in addition to the retainment of worker documents and their supply chains and civil society organisations on behalf of The RBA recently launched a new Worker Voice Platform building confidence in the credibility of the grievance payment of recruitment fees by workers.196 The RBA Code workers, can lodge grievances and complaints through RBA that includes a mechanism to enable workers in member mechanism. They are also pivotal in promoting requires members and their suppliers to implement an grievance channels. organisations and supply chains to lodge complaints and accessibility of the mechanism; effective operational-level grievance mechanism capable of receiving complaints from workers about code violations and In addition, the RBA proactively scans for egregious grievances. One element of the platform is the RBA Voices > Effective working relationships with civil society promoting continuous improvement.197 Additionally, workers allegations related to their members or their suppliers with Mobile app. The app includes worker surveys, audit support organisations can help to build worker trust in a must be provided with a safe environment free from fear of advanced search engine analytics that examine news articles, and mobile learning functions.202 grievance channel and in turn, promote accessibility. reprisal or retaliation, to support feedback and grievances to social media posts, and videos. This process, along with the Additionally, the app enables worker interviews to be Working relationship examples include civil be shared freely.198 investigation of credible allegations, can result in a negative conducted off-site, safely, without supervisor oversight, society organisations staffing grievance hotlines impact to the company’s level of membership. and from any device. In circumstances where workers face and carrying out grassroots socialisation of a The RBA stated that its Code of Conduct aligns with the mechanism; and UNGPs, ILO Convention and the OECD Guidelines. It explained The RBA reported that for member compliance requirements retaliation for participating in an audit, they can also report to be enacted, an egregious claim must arise in relation this through a QR code provided by the auditors. Gamified > Holistic solutions that offer a ‘one-stop-shop’ can that it had previously participated in an externally led to a regular or full member. When this occurs, a new case worker education on subjects that relate to health and safety, help to build worker trust in the organisation and alignment exercise to the UNGPs. This work later informed is opened (pending thresholds are met and the claim is career development and personal growth are incorporated credibility for the grievance mechanism. the development of the RBA’s current grievance processes. Processes have also been aligned with the OECD's Due credible and within the scope of the Code of Conduct) and into the app and are available in multiple languages. Diligence Guidance for Responsible Business Conduct.199 the allegation fully investigated. This may result in an on-site When asked if it was more advantageous to offer workers investigation. Egregious claim cases must be corrected or will specific helplines and grievance channels or a more holistic result in a downgrade of membership. service, the RBA advocated for the provision of a ‘one-stop- RBA’s assessment programs: Expectations on operational-level grievance mechanisms Grievances that are outside the scope of the RBA Code shop’. It stated that a more holistic helpline can help to will generally be brought to the attention of the member by build worker trust in the organisation, particularly if it offers The RBA provides its members with several assessment the RBA, encouraging them to address the claim. The RBA services and advice in relation to wage statements, housing, tools to measure and understand how they are meeting reported that it tries to contact partner organisations where and healthcare. RBA standards. Among these tools are the Validated Assessment Program (VAP) and Supplemental Validated there is a need and opportunity to provide a person raising the RBA non-retaliation helpline Audit Process (SVAP) on topics like forced labour and grievance access to victim services. The RBA reported that is has a non-retaliation helpline that it chemical management. Carried out by third-party auditors in The RBA reported that most findings related to forced labour promotes with workers via a business card handed to them on-site assessments, these processes investigate whether are found through audits and civil society organisation after a worker interview. When a worker reports retaliation, an the grievance mechanisms made available to workers are complaints. investigation is opened, and the issue is addressed. adequate and effective. This assessment investigates several Suara Kami Helpline RBA accountability mechanism criteria, including whether: The ‘Suara Kami Helpline’ is a third-party grievance channel, There is an accountability mechanism for its members on > There is an adequate and effective process to implemented across 20 factories in Malaysia that are RBA’s website that includes a complaints channel. This allows anonymously report grievances and complaints, which is involved in the Responsible Workplace Program.201 Factories the RBA to be contacted directly by workers, civil society internal (for workers and staff) and external (for workers participating in this program are required to advertise the organisations and social workers. of suppliers, local community or interested actors and helpline and promote its use. The helpline is available in whistle-blowers); multiple languages and is staffed by a Malaysian civil society 44 45 Effective Modern Slavery Grievance Mechanisms Key Insights Key Insights Key Insights Key insights from this research can be applied by business in the design and implementation of operational-level grievance mechanisms, or in partnership with suppliers. These insights draw on the case studies and are expanded upon in the companion guidance note. Collaborate: The most comprehensive approach is for a business to have its own grievance mechanism, as well as concrete expectations for suppliers to implement their own mechanisms. Access to remedy: In determining what level of responsibility a business has in providing remedy in relation to the activities of suppliers, consideration needs to be given to whether the business has caused, contributed to, or is directly linked to the activity. Design: Worker-centric design and implementation is critical to building trust for, and credibility of, the mechanism. Design: Building supplier ownership of a factory-level grievance mechanism begins in the design phase of developing a mechanism. Collaborate: Effective working relationships with civil society and worker organisations, including through the staffing of grievance hotlines and in carrying out grassroots socialisation of a mechanism, can help to build worker trust in the grievance channel and in turn, promote accessibility. Access to remedy: Leveraging relationships with factories can ensure more adequate and effective access to grievance mechanisms for direct and supply chain workers. Similarly, leveraging long-term relationships with suppliers, by fostering trust and a collaborative approach, can support systemic change in supply chains. Access to remedy: Creating access to an effective grievance mechanism and remedy beyond tier one of the supply chain is a key challenge. Beyond identifying issues in tiers two and three of the supply chain, businesses need to consider their role in giving access to an effective remedy to these workers. Trust: Building trust with workers and site management is critical to ensuring effective access to, and use of, grievance mechanisms. Trust: Despite the resource intensity required in their establishment, worker voice apps are scalable and can offer a holistic ‘one-stop-shop’ that can help to build worker trust in the organisation and credibility for the grievance mechanism. Escalation: The effectiveness of worker voice apps depends upon the management systems that sit behind the app. Ensuring clear lines of responsibility in relation to the receipt, classification and management of grievances lodged is critical. Trust: Quick acknowledgement of receipt of complaints and notification of the approximate turnaround time helps to build trust for the grievance mechanism and in how complaints are handled. Track: Grievance tracking charts can help build transparency and predictability around the grievance process. Pilot: Piloting a mechanism at one or a few locations and with the business’s own employees can be helpful in identifying gaps before broader implementation across locations and suppliers. COVID-19: COVID-19 impacts to businesses have drastically decreased the visibility of issues faced by workers. While COVID-19 restrictions are limiting the ability of auditors to conduct physical investigations, existing factory- level grievance mechanisms that are effective can continue to provide workers with a channel to make complaints. Access to remedy: Proactive approaches, such as worker committees and human resources clinics, can be used to prevent issues from escalating into potential instances of modern slavery and can support a timelier resolution of issues and potential breaches. Note: It is suggested that key insights are read sequentially to better support the design and implementation of an effective grievance mechanism. 46 47 Effective Modern Slavery Grievance Mechanisms References References to provide for, or cooperate in the remediation of adverse human rights 75 Corporate Human Rights Benchmark. CHRB Core UNGP Indicator impacts that they identify they have caused or contributed to. OHCHR. Assessment: For companies in all sectors. April 2019. Available at: Guiding Principles on Business and Human Rights, 24. https://www.corporatebenchmark.org/sites/default/files/2019-11/ 49 OHCHR. Guiding Principles on Business and Human Rights. (Principle CHRB%20Core%20UNGP%20Indicators%20-%2025Apr2019.pdf. 1 Office of the High Commissioner for Human Rights (OHCHR). Guiding 19 OHCHR. Guiding Principles on Business and Human Rights. 13b). 76 Eastwood, Sam, Ford, James and Reynolds, Libby. ‘Business and Principles on Business and Human Rights. New York and Geneva: 20 Ibid. human rights: Corporate Human Rights Benchmark 2020 signals the 50 Ibid, 31. United Nations (UN), 2011. Available at: https://www.ohchr.org/ need for businesses to do more.’ Mayer Brown, 17 December 2020. documents/publications/guidingprinciplesbusinesshr_en.pdf. 21 OHCHR. Guiding Principles on Business and Human Rights. 51 Ibid, 33-35. Available at: https://www.mayerbrown.com/en/perspectives-events/ 2 Lyneham Samantha, Dowling Christopher and Bricknell Samantha. 22 ILO and Walk Free. Global estimates of modern slavery: Forced labour 52 Australian Government. Commonwealth Modern Slavery Act 2018: publications/2020/12/business-and-human-rights-corporate- ‘Estimating the dark figure of human trafficking and slavery and forced marriage, 21. Guidance for Reporting Entities, 40. human-rights-benchmark-2020-signals-the-need-for-businesses- victimisation in Australia.’ Statistical Bulletin no. 16. Canberra: Australian 23 Ibid, 10. 53 Ibid. to-do-more?utm_source=Mondaq&utm_medium=syndication&utm_ Institute of Criminology, 2019. Available at: https://www.aic.gov.au/ 24 Lyneham S, et al. Estimating the dark figure of human trafficking and campaign=LinkedIn-integration. One example of this is a letter from the 54 Ibid. publications/sb/sb16. slavery victimisation in Australia. Investor Alliance for Human Rights to 95 companies, undersigned by 55 Ibid. 176 investors representing US$4.5 trillion in assets under management. 3 International Labour Organisation (ILO) and Walk Free. Global 25 Walk Free. ‘Global Findings.’ Global Slavery Index. Last modified, 56 OHCHR. OHCHR Response to Request from BankTrack for Advice The letter made clear investor expectations that these companies Estimates of Modern Slavery: Forced labour and forced marriage. 2018. Available at: https://www.globalslaveryindex.org/2018/findings/ Regarding the Application of the UN Guiding Principles on Business respect human rights through rigorous due diligence processes, and Geneva: ILO, 2017, 21. Available at: https://www.ilo.org/wcmsp5/ global-findings/. and Human Rights in the Context of the Banking Sector. New York and transparent grievance mechanisms that can remediate negative groups/public/---dgreports/---dcomm/documents/publication/ 26 Locke, S. ‘Debt bondage for workers in Australian horticulture akin to Geneva: UN, 12 June 2017, 6. Available at: https://www.ohchr.org/ impacts. See, Investor Alliance for Human Rights, Letter: Investor wcms_575479.pdf. slavery, inquiry hears.’ Documents/Issues/Business/InterpretationGuidingPrinciples.pdf. 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Available at: https://www.ihrb. conditions likened to ‘slavery’.’ Especially Women and Children, supplementing the United Nations org/uploads/submissions/John_Ruggie_Comments_Thun_Banks_ 77 Ethical Trading Initiative and Ergon Associates. Managing Risks Convention against Transnational Organized Crime and Article 3 of the 29 David, F., ’Labour Trafficking.’; Joint Standing Committee on Associated with Modern Slavery, 13. Feb_2017.pdf. ILO Convention (No. 182) concerning the Prohibition and Immediate Foreign Affairs, Defence and Trade, Hidden in Plain Sight: An inquiry into establishing a Modern Slavery Act in Australia. December 58 Ibid, 17-8. 78 OHCHR. Guiding Principles on Business and Human Rights. Action for the Elimination of the Worst Forms of Child Labour. 2017. Available at: https://parlinfo.aph.gov.au/parlInfo/download/ 59 Ibid, 15-6. 79 OHCHR. 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Available at: https://www.allens.com.au/insights-news/ files/2020-05/rpp108.pdf; Joint Standing Committee on Foreign 39 Australian Government. Commonwealth Modern Slavery Act 2018: htm. insights/2020/02/the-new-hague-rules-on-business-and-human- Affairs, Defence and Trade. Hidden in Plain Sight: An inquiry into Guidance for Reporting Entities. 2018, 47. Available at: https://www. 69 International Finance Corporation (IFC). Performance Standards. rights-arbitration-effective-remedy-or-strange-chimera/. establishing a Modern Slavery Act in Australia. Canberra: Parliament homeaffairs.gov.au/criminal-justice/files/modern-slavery-reporting- 2012. Available at: https://www.ifc.org/wps/wcm/connect/Topics_Ext_ 87 OHCHR. Guiding Principles on Business and Human Rights. of Australia, December 2017. Available at: http://parlinfo.aph.gov. entities.pdf. Content/IFC_External_Corporate_Site/Sustainability-At-IFC/Policies- au/parlInfo/download/committees/reportjnt/024102/toc_pdf/ 88 OHCHR. 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Available at: Available at: https://www.fairlabor.org/third-party-complaint-process. 97 Ibid, 3-4. https://www.ebrd.com/csSatellite?c=Content&cid=1395268983074&d= https://www.thaiunion.com/en/sustainability/report. 182 FLA. ‘FLA Workplace Code of Conduct.’ Last accessed, March 2021. &pagename=EBRD%2FContent%2FDownloadDocument. 163 Thai Union Group. Human Rights Due Diligence Framework. March Available at: https://www.fairlabor.org/our-work/labor-standards. 98 Ibid. 135 Ibid. 2020, 16. Available at: https://www.thaiunion.com/files/download/ 183 FLA. Principles of Fair Labor and Responsible Sourcing. Last 99 Ibid, 4. sustainability/policy/20181128-tu-human-rights-en.pdf. 136 Ibid. accessed, March 2021. Available at: https://www.fairlabor.org/sites/ 100 GRI. GRI 103: Management Approach. 164 Thai Union Group. Suppliers’ Business Ethics and Labor Code of default/files/responsible_sourcing_principles.pdf. 137 Murray, Joy and Malik, Arumina. Modern Slavery and COVID-19: Are 101 OHCHR. 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Out_of_Sight_Modern_Slavery_in_Pacific_Supply_Chains_of_Canned_ 188 FLA. Third Party Complaint Procedure Factsheet. Available at: 107 OHCHR. The Corporate Responsibility to Respect Human Rights: An See KnowTheChain, NXP Semiconductors NV: Information and Interpretive Guide, 69. Tuna_4.pdf. https://www.fairlabor.org/sites/default/files/3pc_factsheet_english_0. Communications Technology Benchmark Company Scorecard. 2020. pdf. 108 OHCHR. Accountability and Remedy Project Part III: Enhancing Available at: https://knowthechain.org/wp-content/uploads/2020_ 167 Ibid, 3. effectiveness of non-State-based grievance mechanisms in cases of 189 FLA. Charter. 9 September 2020, 32. Available at: https://www. KTC_ICT_Scorecard_NXP.pdf. Based on the UNGPs, the KnowTheChain 168 ABN AMRO. Modern Slavery Statement. March 2018, 1. Available business-related human rights abuse. New York and Geneva: UN, 2 fairlabor.org/sites/default/files/fla-charter_revised_september_2020. benchmarks assesses measures taken by businesses to address at: https://www.banktrack.org/download/modern_slavery_ November 2017, 4. Available at: https://www.ohchr.org/EN/Issues/ pdf. forced labor risks in their supply chains. statement_2018_5/abn_amro_modern_slavery_statement_2018.pdf. Business/Pages/ARP_III.aspx. 190 Ibid. 141 NXP Semiconductors. 2019 NXP Modern Slavery and Human 169 BankTrack. ‘ABN AMRO’. Available at: https://www.banktrack.org/ 109 OHCHR. Guiding Principles on Business and Human Rights, 32-3. Trafficking Statement, 32. bank/abn_amro;. 191 Ibid, 33. 110 OHCHR. The Corporate Responsibility to Respect Human Rights: An 142 Literacy is not an issue for workers in NXP’s manufacturing sites 170 ABN AMRO. Modern Slavery Statement, 2. 192 FLA. ‘Third Party Complaint Process.’ Last accessed, March 2021. Interpretive Guide, 27. given the nature of their work requires reading instruction manuals. Available at: https://www.fairlabor.org/third-party-complaint-process. 171 ABN AMRO. Human Rights Report 2020. March 111 Ibid. 143 NXP Semiconductors. 2019 NXP Modern Slavery and Human 2021, 35. Available at: https://assets.ctfassets. 193 FLA. ‘Assessments.’ Last accessed, March 2021. Available at: https:// 112 NSW Government. ‘Modern Slavery.’ Trafficking Statement, 33. net/1u811bvgvthc/6P4BH2sq0yp2kvQr7PnQVw/3ec01f7b29571c www.fairlabor.org/transparency/assessments. 113 Under the Criminal Code Act 1995 (Cth), Divisions 270 and 271 and 144 Ibid, 32. 59eaab51b1efae373e/ABN_AMRO_____Human_Rights_Report_2020. 194 FLA. ‘Third Party Complaint Tracking Chart.’ Last accessed, March the Modern Slavery Act 2018 (Cth). pdf. 2021. Available at: https://www.fairlabor.org/third-party-complaint- 145 Ibid, 27. 172 As set out by the UNGPs. Questions about ‘under what tracking-chart 114 Australian Government, Department of Home Affairs. ‘Criminal 146 Ibid. Justice.’ Last modified, 2021. Available at: https://www.homeaffairs. circumstances might a bank contribute to negative impacts 195 RBA. ‘About the RBA.’ Last accessed, March 2021. Available at: 147 KnowTheChain. 2020 Information and Communications on people, and under what circumstances might a bank be https://www.responsiblebusiness.org/about/rba/. gov.au/about-us/our-portfolios/criminal-justice/people-smuggling- Technology: Benchmark Findings Report. 2020, 58. Available at: https:// human-trafficking/human-trafficking. directly linked to those impacts?’ are contemplated in the Dutch 196 RBA. Code of Conduct. 2021, 2. Available at: https://www. knowthechain.org/wp-content/uploads/2020-KTC-ICT-Benchmark- Banking Sector Agreement. Discussion Paper: Working Group 115 Australian Government, Commonwealth Modern Slavery Act 2018 responsiblebusiness.org/media/docs/RBACodeofConduct7.0_English. Report.pdf. Enabling Remediation. May 2019, 16. Available at: https://www. Guidance for Reporting Entities, 76. pdf. 148 NXP Semiconductors. Code of Conduct. 2015. Available at: imvoconvenanten.nl/nl/bancaire-sector/about-this-agreement/-/ 116 Nolan, J and Boersma, M. Addressing Modern Slavery, 10. media/07CD109E4E15451AB96D8B2DC210713E.ashx. 197 Ibid, 13. https://investors.nxp.com/static-files/dea1b56c-96ba-4d5d-92c5- 117 Lewis, Hannah, Dwyer, Peter, Hodkinson, Stuart and Waite, Louise. 08ddff84ef3e. 173 Ibid, 17. 198 Ibid. Precarious Lives: Forced Labour, Exploitation and Asylum. Bristol: Policy 149 NXP Semiconductors. NXP Supplier Code of Conduct. November 174 Ibid, 18. 199 OECD. OECD Due Diligence Guidance for Responsible Business Press, 2015, 153. 2018, 9. Available at: https://www.nxp.com/docs/en/supporting- Conduct. 2018. Available at: http://mneguidelines.oecd.org/OECD-Due- 175 AusNCP. Statement by the Australian National Contact Point: AZN Diligence-Guidance-for-Responsible-Business-Conduct.pdf. 118 These include ratification of the ILO Forced Labour Convention (No. information/NXP-Supplier-Code-of-Conduct-EN.pdf. Specific Instance. Available at: https://ausncp.gov.au/sites/default/ 29) in 1932, the Abolition of Forced Labour Convention (No. 105) in 150 NXP Semiconductors. 2019 NXP Modern Slavery and Human files/inline-files/ANZ_Statement.pdf. 200 RBA. RBA VAP Code Interpretation Guidance. January 2021, 1960, and the Protocol to Prevent, Suppress and Punish Trafficking in Trafficking Statement, 32. 187. Available at: https://eiccoalition.sharefile.com/share/view/ Persons, Especially Women and Children, supplementing the United 176 OECD. Due Diligence for Responsible Corporate Lending and s5826fdb2c52448c. 151 NXP Semiconductors. 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(the NSW Act has not been fully operationalized). 155 Ibid, 33. 179 Ibid. 122 Duty of Vigilance Law 2017 (France). 156 Ibid, 17. 123 Nolan and Boersma. Addressing Modern Slavery, 122-126. 157 KnowTheChain. Eradicating Forced Labor in Electronics: What Do 124 Modern Slavery Act 2018 (Cth), section 3. Company Statements Under The UK Modern Slavery Act Tell Us? March 125 Ibid. 2018, 18. Available at: https://knowthechain.org/wp-content/uploads/ 126 Australian Border Force. ‘Online register for Modern Slavery KTC-ICT-MSA-Report_Final_Web.pdf; KnowTheChain, 2020 Information Statements’. Australian Government. Last accessed, March 2021. and Communications Technology: Benchmark Findings Report. 2020, Available at: https://modernslaveryregister.gov.au. 38. Available at: https://knowthechain.org/wp-content/uploads/2020- KTC-ICT-Benchmark-Report.pdf. 127 Ibid. 158 Country Road Group. ‘Our Suppliers.’ Last accessed, March 2021. 128 Ibid, section 16(1)(d). Available at: http://www.countryroadgroup.com.au/sustainability/our- 129 Australian Government. Commonwealth Modern Slavery Act 2018 suppliers.htm; David Jones. ‘Social Responsibility and Sustainability.’ Guidance for Reporting Entities, 47. Last accessed, March 2021. Available at: https://www.davidjones.com/ 130 Modern Slavery Act 2018 (Cth), section 16(1)(e). gbj. 131 Australian Government. Commonwealth Modern Slavery Act 2018 159 The updated Code of Labour Practice for the Production of Goods Guidance for Reporting Entities, 47. Supplied to the Country Road Group can be accessed here: http://www. 132 International Commission of Jurists. Effective Operational-Level countryroadgroup.com.au/sustainability/our-suppliers.htm. Grievance Mechanisms. November 2019, 52. Available at: https:// 160 Country Road Group. Code of Labour Practice for the Production www.icj.org/wp-content/uploads/2019/11/Universal-Grievance- of Goods Supplied to the Country Road Group. July 2015. Available Mechanisms-Publications-Reports-Thematic-reports-2019-ENG.pdf. at: http://www.countryroadgroup.com.au/images/assetimages/ sustainability/CRG-Code-of-Labour-Practice-July-2015.pdf. 50 51 Effective Modern Slavery Grievance Mechanisms The Ten Principles of the United Nations Global Compact The Ten Principles of the United Nations Global Compact The Ten Principles of the United Nations Global Compact are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption. Human Rights 1: Businesses should support and respect the protection of internationally proclaimed human rights; and 2: Make sure that they are not complicit in human rights abuses. Labour 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4: The elimination of all forms of forced and compulsory labour; 5: The effective abolition of child labour; and 6: The elimination of discrimination in respect of employment and occupation. Environment 7: Businesses should support a precautionary approach to environmental challenges; 8: Undertake initiatives to promote greater environmental responsibility; and 9: Encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption 10: Businesses should work against corruption in all its forms, including extortion and bribery. Global Compact Network Australia www.unglobalcompact.org.au Twitter: @GlobalCompactAU LinkedIn: Global Compact Network Australia Global Compact Network Australia