Forced Labor

Forced labor is a social evil which has not place in the modern world. It represents the underside of globalization and denies people their basic rights and dignity. To achieve a fair globalization and decent work for all, it is imperative to eradicate forced labour.
——ILO Director-General Juan Somavia

The term "forced labor" brings to mind images of chained prisoners sweating at a quarry or a plantation, carefully watched by armed guards or military personnel. In reality, this form of forced labor still exists, but only in a handful of countries. Other forms of forced labor, such as debt bondage, are less known, but are far more prevalent in the world today.

ILO estimates that there are around 12 million forced labors around the world. Most of them are from Asia. Forced labor is the by-product of globalization, which results in new forms of faced labor. Western companies outsource most of their processes to manufactures in developing countries to cut cost and keep competitive. The working conditions of their subcontractors are rarely monitored.

Therefore, it needs governments, employers and unions to work together to eliminate forced labor.

Most of codes of conduct require suppliers to ensure workers' freedom of movement at workplace. Employees should be free to leave the workplace and manage their own time while not on duty, without interference or intimidation from management or security guards. If people choose to quit their job, they should be free to do so, as long as they have fulfilled their obligations agreed to under a fair and transparent employment agreement. Loan payments should be considered separately from the employment contract. Typical employment contracts will contain a clause allowing the termination of such contract by either party with a specified number of days advance notification. Management must refrain from imposing any form of sanctions against such choice.

Imprisonment is an extreme example of such sanctions, yet its occurrence is not uncommon in factories, particularly in small, private workshops hidden from public view or in dormitories belonging to a bigger production site. One way to investigate such violations is to check the security guards contract terms against the actual service rendered. Security guards should be used to guarantee workplace security, and should in no way be used to intimidate workers or confine their freedom. Auditors should interview both guards and workers to verify the nature of the security guards work.

Though not as blatant, other types of sanctions can still compromise employee's free choice. For instance, deposits upon employment, retaining any portion of monthly wages till the end of year or expiration of employment term, and refusal to pay legally required severance can effectively deter employees freedom of movement. In some parts of the world it is common to require a newly hired worker to purchase a financial bond which will be returned to the worker upon termination of contracted employment. Known most commonly as runaway insurance, this financial instrument is held by the factory and workers default should they leave without factory permission. This practice is not allowed if the bond is purchased under duress as a condition of employment.

As with the issue of child labor, the major causes of forced labor include poverty and the lack of a government-provided, free education. In some regions, traditional cultural beliefs may help perpetrate the situation. The phenomenon is not limited to the developing world. For example, in some industries and regions of such highly developed countries as the United States and the United Kingdom, it is highly likely for migrant workers to become the victims of bonded labor.

Forced labor and its numerous forms are universally condemned. The Universal Declaration of Human Rights, adopted 50 years ago, proclaimed that no-one shall be held in slavery and servitude.

Procedures to Ensure Compliance in Your Facility
  • Ensure each employee has been educated on the facilities policy and procedure on forced labor. (E.g. handbooks, meetings, courses, classes, postings, periodic notifications, etc.)
  • Ensure each employee has a complete, accurate and up to date labor contract
  • Ensure prior to signing the labor contract each employee in your facility has read understands and agrees to the terms and conditions of the labor contract. If employees cannot read, someone should explain the terms and conditions of the labor contract through alternative forms of communication. (E.g. verbal, visual, etc.)
  • Ensure all contents of the labor contract have been discussed with employees in its entirety. Items should not be added or deleted from the labor contract without the employees consent.
  • Ensure labor contracts are inclusive of the following: terms of the contract, production (working) duty, labor discipline, working hours and compensation, social insurance and welfare compensation, occupational health and safety, termination of labor contract condition( no fees charged), liability of violating labor contract and mediation and arbitration.
  • Ensure labor contracts have received authority stamping(Other than Shenzhen).
  • Review internal employment practices to determine the source of labor and terms of hiring.
  • Ensure hiring parties do not lodge deposits, either of identity papers, passports, work permits or currency.
  • Ensure employees do not have long-running debt with the company or have been assessed excessive penalties, which can create indebtedness.
  • Ensure that employees are aware of the compensation practices, and are being compensated directly.
  • Develop standard factory policies and procedures to confirm voluntary acceptance of overtime work by factory workers.
  • Ensure employees are free from leaving the factory or dormitory at the end of the work shift.
  • Ensure employees are free to resign, without penalty, once they have given required resignation notice.
  • Ensure employees who have submitted resignations receive their last month's salary.
  • Ensure no restrictions are placed on basic liberties ( E.g. bathroom, drinking water, use of infirmary etc.)
  • Ensure you receive legal exemption for extended working hours due to special production and business requirements. After obtaining exemptions ensure workers are consulted and agree to work overtime shifts.
  • Ensure employees are not penalized for the refusal to work overtime through reduction of wages or threat of dismissal.
  • Ensure workplaces or communal living quarters in your facility are not locked.
  • Ensure security personnel are used for the protection of facility personnel or property.
  • Ensure body searches are conducted between same gender and without body touch (i.e. metal detector etc).
Good Practices
  • Designate a person responsible for routinely verifying the effectiveness of the factory's policies and procedures on forced labor.
  • The facility continuously trains supervisors and security guards on the facilities policy on forced labor.
  • Supervisors and security guards are held accountable for violations of the facilities policy on forced labor.
  • The facility has adopted a confidential system for factory worker feedback for violations of the factory policy on forced labor.
  • Include statements that applicants are seeking employment voluntarily in hiring documents (E.g. employment applications or contract)
  • Labor agents disclose labor sources.
  • Management monitors subcontractors, and labor agents to ensure compliance with this standard.
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