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When we think about modern slavery in the textile industry, we may think about the concentration camps that are prisons to the Uyghur people in the Xinjiang region of China, where 20% of the world’s cotton originates.
However, since 2020, there has been a large-scale operation in Leicester, responding to reports of exploitation and underpayment within the textile sector. A recent report by the Low Pay Commission (LPC) details how textiles manufacturing in Leicester has been the focus of substantial enforcement activity.
The human right and modern slavery abuses go back further, with reports as far back as 2014 outlining employees of the Leicester textile sector earning just £3 an hour!
The report pulls together evidence from workers, manufacturers, retailers, and enforcement bodies to understand and place context against this activity. Previously, documentaries have shone a light on Leicester’s textiles sector such as the Channel 4’s Dispatches investigation.
Whilst the report outlines that fear, job insecurity and low expectations are among the factors for Leicester textile workers’ unwillingness to report their underpayments and working conditions. This is as a result of most workers just being grateful to be employed whilst others are worried their hours would be reduced and therefore lose valuable income.
At the height of Covid-19, Leicester and their textiles manufacturers were the focus of media attention as reports of poor working conditions were enabling transmission of the virus.
Biometric machines for workers to clock-in and clock out could control the practice of overwork and underpay – although supply chain auditors found this could be circumvented by hiding a secondary machine or using a separate paper record.
Recently Missguided went into administration with considerable debts owed to suppliers, including Leicester based manufacturers. The debts owed to manufacturers will often mean that they’re unable to pay their workers and often results in loss of employment.
In 2020, the Boohoo Group sought an independent review with four core objectives after media allegations suggested that there were unacceptable working conditions and underpayment of workers at premises owned and controlled and operated by some of Boohoo Group’s suppliers, principally in Leicester.
The four core objectives for this independent review are: 1) To investigate the allegations made in relation to the Leicester supply chain and determine whether they are well-founded; 2) If they are, to consider the extent in which the Boohoo Group monitored its Leicester supply chain and had knowledge of the allegations; 3) to consider the Boohoo Group’s compliance with the relevant law; and 4) To make recommendations for the future in response to those finds.
The report by Alison Levitt QC outlined 6 months to three year plans to support Boohoo Group’s supply chain that included upskilling manufacturers to improve their productivity and develop the skills to manufacture more sophisticated clothing, competing with that produced in overseas factories as well as training their own buyers in the actual cost of fabricating garments and therefore buyers do not drive cost prices below what is reasonable. Short term plans include mapping their supply chain to reduce its approved suppliers to a list that contains a manageable number of manufacturers without reducing capacity.
Eradicating Modern Day Slavery from your Supply Chain
Retailers are recommended to register to the Ethical Trading Initiative, a UK based independent body that continuously monitors private sector organisations supply chains in accordance with their ethical code.Ensure your supply chain acts in accordance with the UN Guiding Principles on Business and Human Rights (UNGPs) and conduct due diligence in line with these principles by assessing the immediate adverse human rights impacts on works.
More and more retailers have taken steps to reform their supply chain by ensuring manufacturers adhere to their own code of conduct. This code of conduct makes clear to manufacturers that transparency over wages and working conditions are adhered to and that subcontracting is abolished. This is further backed by retailers taking a hard-line approach and has already seen several manufacturers removed from their supply chain.
Many retailers have joined industry forums such as the Apparel and General Merchandise Public Private Protocol (AGMPPP). This forum brings together retailers, unions, enforcement bodies and local authorities to discuss progress around non-compliance, modern slavery and other key issues within their supply chain.
Global transportation costs, Brexit and Covid-19 are contributing factors to retailers seeking UK based manufacturers and the Government need to invest more, now, in the UK textile sector. By reducing the need to offshore this sector, this will reduce the impact supply chains have on climate change whilst supporting the UK economy.
It is worth all procurement and supply chain professionals understanding the ethical, reputational and disruption that will be caused by poor human rights standards and modern slavery within their supply networks, irrespective of whether you are part of a public or private sector organisation.
