Revisiting seafood supply chains with Waitrose

Cristina Talens

Director of Modern Slavery Risk Assessments

Wilberforce Institute, University of Hull

c.talens@hull.ac.uk

For over 15 years, Waitrose has had a strategy in place for the responsible sourcing of wild-caught and farmed fish. The retailer has placed great emphasis on ensuring they sell only high quality products sourced from known and approved farms (Waitrose’s supply chain information can be found on the Ocean Disclosure Project website). However, these farms (and fisheries) are located across the world and include some high-risk countries with regards to human rights abuses. Some of them have been widely reported in the press, with headlines focussing predominantly on seafood supply chains in south-east Asia and Central and Latin America. Examples include incredibly long working hours which have led to workers allegedly consuming drugs, such as amphetamines, just to keep going.

In March 2019, Waitrose commissioned the Wilberforce Institute to map out the risks associated with labour and human rights in their seafood supply chains for prawns, scallops, mussels, squid, ray, herring milts and clams amongst others.

The Wilberforce Institute conducted a desk review and interviewed HR personnel and managers from 11 seafood companies in Chile, Ecuador, Honduras, Indonesia, Madagascar, Nicaragua, Peru and Vietnam. The aim of this was to understand worker recruitment and management practices and consider the risk that modern slavery and labour exploitation could take place. The 11 sites covered a workforce of 8900 permanent workers and 1100 temporary workers employed on farms, hatcheries and feeding centres.

The interviews provided Waitrose, and their direct UK based suppliers, with an overview of the specific labour and human rights risks affecting the selected seafood supply chains. Below is a summary of the findings which were based entirely on information provided by site managers:

Gender: 95% of the workforce identified on farms and hatcheries and feeding centres were male. It was therefore considered that in the scenarios being assessed, men were at a much higher risk of human rights abuses than women. One of the reasons given for the gender disparity was that farms and hatcheries are remotely located and the tasks performed by workers are more physically demanding. It is notable that at the packhouse, the gender ratio changes with women representing 50% of the workforce. Packhouses are located nearer to local communities and the work is less physical.

Recruitment methods: Most sites appear to use labour agencies for the purpose of recruiting workers, but not for managing them.

2 out of 11 sites (12%) reported that they used labour agencies and/or subcontractors in Indonesia and Vietnam at hatcheries and farms in more remotely located areas.

5 out of 11 sites (45%) reported that labour agencies carried out recruitment, but that they directly employ the workers once they arrive on site.

Hours: It was found that there was often a lack of transparency regarding working hours. This, in turn, often translated into a lack of transparency on worker’s wages as it is unclear what hourly wage is being paid and whether overtime premiums are being paid.

2 out of 11 sites (12%) had no transparency on working hours and therefore there was a high possibility that wages were being incorrectly calculated.

5 out of 11 sites (45%) reported excessive working hours and working days. On one site, workers undertook four weeks of work without a day off.

Accommodation: Hatcheries and farms often house workers. The sites are remotely located and accommodation is provided at 7 of the 11 sites (64%). These house hundreds of workers at a time and this is where the risk of forced labour is highest. Processing sites tend to be closer to the towns providing better transport links and communication with the outside world.

Loans: It is recognised by the farms that loans can be of benefit where there is no welfare structure to support the most vulnerable. The loan amount must not be more than can be reasonably paid back, as this would create debt bondage. Loans were offered in 7 out of 11 sites (64%).

Worker voice: The effectiveness of current worker voice/feedback mechanisms at the farm sites is questionable.

6 out of 11 sites (55%) reported that they had trade unions in place: 4 of these were in Vietnam and 1 in Indonesia. To date, in Vietnam, there is only one representative organisation of workers, the Vietnam General Confederation of Labour (VGCL), however in December 2019 the New Labour Code of Vietnam was passed, for enactment in January 2021. In order to observe Vietnam’s commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam Free Trade Agreement (EVFTA) and ILO Conventions, the New Labour Code recognises the right of employees to set up their own representative organisations. The 2020 ITUC Global Rights Index rated Indonesia as a 5, which means there is no guarantee of worker rights in the country. There is also evidence that arbitrary arrests of union representatives were made there in 2019.

In South America, there was no trade union representation at any of the farm sites. Ecuador and Honduras were both rated as a 5, which means that there is no guarantee of worker rights, whereas Chile and Peru were only slightly better with a rating of 4, meaning there are systematic violations of rights. Nicaragua did not have a rating.

There has been considerable unrest across South America in recent years, and at one site, workers (who are housed in employer’s accommodation) were not allowed to contact the ‘outside world’, which was considered by the farm management as a safety measure but could also be viewed as a forced labour indicator.

As a result of these risk assessments, Waitrose engaged direct suppliers, sharing the findings of the assessments with them and following up on the individual corrective actions taken at the farm sites. They also issued a call to action for the industry to collaborate on greater transparency within seafood supply chains as the best opportunity to tackle both illegal fishing and human rights abuses within the seafood sector. To this end, Waitrose signed the Environmental Justice Foundation’s 10 point Charter for Transparency in 2019. Waitrose also recognised that there was a clear need for further investigation and research into the human rights risks in seafood supply chains, especially at the hatcheries and farm sites which are often remotely located and appear to be high risk. Industry collaboration is required to conduct and fund risk assessments on sites in the highest risk countries and could be supported by experts on modern slavery such as those at the Wilberforce Institute.

Modern Slavery Update

Professor Trevor Burnard

Director of the Wilberforce Institute

Wilberforce Institute, University of Hull

t.g.burnard@hull.ac.uk

Andrew Smith

Coordinator of the Humber Modern Slavery Partnership

Wilberforce Institute, University of Hull

a.smith9@hull.ac.uk

In this final blog of 2020, Trevor Burnard and Andrew Smith provide updates on recent initiatives to tackle modern slavery. First, Andrew provides an overview of practical developments in our region that aim to combat modern slavery, taken from his November newsletter.

Tackling Modern Slavery

Seven-strong purge on Modern Slavery
A unique and trail blazing approach to tackling modern day slavery is set to crank up the heat on those who exploit people through business activities and supply chains. Seven Police and Crime Commissioners and their respective Chief Constables including Humberside have worked together to develop a Modern Slavery Transparency in Supply Chains (TISC) Statement. In Humberside, the commitment by Police and Crime Commissioner Keith Hunter to fund the partnership coordinator role and support the creation of our dedicated Operation Wilberforce police team means that our Anti-Slavery efforts are now firmly part of daily business. While there is still much work to do to embed a sustainable and meaningful response in all sectors, stakeholders, partners and those who have a statutory duty to respond to modern slavery in our area have more support than ever before to meet their obligations.

Force wide strategy to tackle modern slavery – Humberside Modern Slavery Partnership Strategic Plan 2020 – 2023
To coincide with Anti-Slavery Day 2020, the Humber Modern Slavery Partnership released the first modern slavery strategy for the Humber region. This progressive move sets the tone for partnership action over the next three years in combatting this despicable crime. Spanning all four local authority areas in our region, this new, overarching strategy brings together statutory and non-statutory partners including law enforcement, academics and health and third sector professionals to give a focused and targeted approach to modern slavery and human trafficking. For more details see Andrew’s earlier blog at: https://wilberforceinstitute.uk/2020/10/26/combating-modern-slavery-in-the-humber/

Innovative new workshops will help frontline workers respond to cases of modern slavery
The University of Hull’s Wilberforce Institute has helped launch a new series of innovative resources, designed to help frontline workers respond to individual cases of modern slavery. Launched to mark Anti-Slavery day this year, the Institute, in partnership with The Modern Slavery and Human Rights Policy and Evidence Centre, has announced new resources and workshops. These have been led by a team at the Institute, in collaboration with the Gangmasters and Labour Abuse Authority (GLAA), the Rights Lab at the University of Nottingham, the Humber Modern Slavery Partnership and Fresca Group. The workshops provided to partnership coordinators across the country will help support the training needs among partners working in our communities. For more details see the earlier blog by Alicia Kidd, who led the project, at: https://wilberforceinstitute.uk/2020/08/13/modern-slavery-partnership-workshops/

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In the second part of this blog, Trevor Burnard introduces the launch of a major new appeal for tackling modern slavery.

ACTion to End Modern Slavery

At the University of Hull we are proud of the work carried out at the Wilberforce Institute in understanding and tackling modern day slavery. However, success has been hard won, and the uphill battle continues in the face of increased incidences of modern slavery in the UK.

The Wilberforce Institute is therefore delighted to launch a funding drive for a major new initiative increasing knowledge about the Modern Slavery Act and its operations here in the UK. Action is needed now. Modern slavery and human trafficking are among the UK’s biggest criminal industries and we can only defeat them together. That’s why we’re asking for your support. This week we are launching our fundraising campaign to help the Wilberforce Institute become a hub in the fight against this evil crime. The UK government passed the Modern Slavery Act in 2015, but without additional expertise within the justice system, as well as insight and support for those working to de-criminalise victims, this legislation is too complex to be effective.

The Wilberforce Institute has the ability to play a unique role in building a collaborative network within the legal profession and beyond. With our networks, research and expertise, we can develop strategic and coordinated approaches in protecting, investigating and prosecuting, turning dry legislation into an effective tool for emancipating victims.

More information about the campaign can be found here.

What is freedom to you?

Wilberforce Institute Webinar, Tuesday 22 September 2020

On Tuesday 22 September between 16:00 and 18:00 BST, Cristina Talens, Head of Business Risk Assessment Services in the Wilberforce Institute, will be leading a major discussion on the nature of freedom today: ‘What is Freedom to You?’

This is not a discussion between academics. Instead it involves individuals who work at the forefront of identifying exploitative practices on the ground today – you will find their details below. Cristina Talens has assembled a stellar panel of experts from a diverse range of backgrounds in the areas of ethical trade and supply chains. Our speakers will be talking about what freedom means to them, and about the one thing they believe would have the greatest impact in ensuring that people can be free from exploitation. If you would like to join us, please click on the link at the bottom of the page.

Cristina Talens – Head of Business Risk Assessment Service at the Wilberforce Institute. Cristina Talens has more than 20 years’ experience in ethical trading, sustainability and supply chains. She has worked with migrant workers on modern slavery issues in the UK, France and Italy. In 2000, she joined the United Nations (UN) Global Programme Against Trafficking and Smuggling of Human Beings, and today she regularly conducts social audit assignments and risk assessments on behalf of major UK supermarkets.

Alfonso Herias Garcia – an Ethics and Human Rights specialist currently heading the Ethics team at G´s Fresh, one of Europe’s leading fresh produce companies. He has over 10 years’ experience in the fields of social sustainability, and is responsible for the strategic direction and delivery of G´s Fresh Human Rights Programme, covering over 10, 000 direct workers in places such as the UK, Spain, Eastern Europe, Senegal, and the United States. Alfonso has been an active member of the Food Network for Ethical Trade and the Spanish Ethical Trade Forums. He holds a degree in Political Science and a Masters in International Relations.

Sam Ludlow Taylor– Ethical Trade Manager at the John Lewis Partnership with a focus on the Waitrose brand, a role she has held for 2 years. Sam began her career working as a merchandiser at Homebase and then joined Debenhams where she moved into ethical trade and human rights about 12 years ago. Sam also spent time working for a UK based clothing agent and a soft drinks brand, looking at Tier 1 factories, raw material and commodities sourcing.

Rosey Hurst – founded Impactt in 1997 to make what works for workers work for business. She founded Sedex and launched the Benefits for Business and Workers Programme which links improving productivity with a better deal for workers. She is passionate about re-humanising the workplace, serves on the Ecovadis Technical Committee and is a member of the Responsible Investment Advisory Council at BMO Global Asset Management.

David Camp – Founder and Chief Executive of allianceHR, a not for profit/profit with purpose consultancy. He delivers collaborative programmes to drive systemic human rights improvements in global supply chains. This includes Stronger Together, a multi-stakeholder collaborative initiative supporting organisations to tackle modern slavery; Fast Forward, a next generation supply chains labour standards audit and improvement programme; and the Responsible Recruitment Toolkit, a one-stop capacity-building online toolkit to support supply chains to embed responsible recruitment management systems. David is the Chief Executive of the Association of Labour Providers and received the 2018 Marsh Award for Outstanding Contribution to the fight against Modern Slavery.

Nick Kightley – Strategic Lead for Food, Farming and Fisheries at the Ethical Trading Initiative (ETI). His overseas working experience includes 13 years in the rural Southern Philippines supporting small farmers and their communities and setting up his own rural enterprise there. He worked for 12 years at Traidcraft Exchange as Asia Programme Manager, promoting fair trade businesses, and for 8 years with the Waste and Resources Action Programme, working with SMEs and community based environmental sustainability enterprises. In his ETI role, Nick is able to influence the way business is done and industry functions on a global scale.

Steve Gibbons – Co-founder of Ergon with over 25 years’ experience in labour and human rights issues. He has provided consultancy for the International Labour Organisation, the World Bank Group, the European Bank for Reconstruction and Development, the European Commission, London 2012, the ETI, the UK Department for International Development and the Organization for Security and Co-operation in Europe. Steve has particular expertise in facilitating stakeholder dialogue and in devising and managing grievance and dispute resolution mechanisms in line with the UN Guiding Principles. He is an expert member of the Independent Complaints Mechanism of the sustainable investment company DEG, and FMO, the Dutch development bank. He is a UK-qualified lawyer, a regular conference speaker and the founder of the UK’s leading online training company for lawyers, CPDCast®.

Hannah Davis – more than 15 years’ experience managing international development programmes, with a focus on sustainable and ethical supply chains and the empowerment of smallholder farmers. She has worked with cocoa, coffee, sugar and nut producer organisations across sub-Saharan Africa and Latin America to support improvements in agricultural practice, product quality, market access, governance and women’s participation. Since 2018, Hannah has worked for UK charity the Lorna Young Foundation, developing and promoting its Farmers’ Voice Radio initiative. This brings together smallholder farmers, agricultural experts and supply chain partners to share their knowledge, experience and expertise.

Pins Brown – Head of Ethical and Sustainable Sourcing at The Body Shop. Her working life has involved both suits and muddy boots and has focussed on improving labour conditions in supply chains especially for the least powerful. This has seen her involved in a wide variety of ventures from Mali to Kazakhstan, from agriculture to oil and gas and ASOS to Oxfam, working with large and small businesses, NGOs, trade unions and international organisations. She has also served on advisory panels on UK prison labour and for the Better Cotton Initiative.

Register here for the webinar

Labour Exploitation in Supply Chains

Dr Alicia Kidd

Postdoctoral Researcher

Wilberforce Institute, University of Hull

alicia.kidd@hull.ac.uk

Dr Kidd is particularly interested in bridging the gap between academia and practice in relation to modern slavery and, alongside her academic post, is the Vice Chair of the Humber Modern Slavery Partnership, a position she has held since 2016. She also works with the Risk Assessment Service at the Wilberforce Institute, which supports businesses in identifying and mitigating risks of labour exploitation in supply chains. The blog below was commissioned by Crimestoppers to coincide with their recent campaign on modern slavery. We have replicated the piece here so that it can be made available to a wider audience.

Modern slavery is a term used to refer to extreme forms of exploitation including sexual exploitation, labour exploitation, domestic servitude, criminal exploitation and even organ harvesting. These crimes affect both adults and children and aren’t limited to gender or nationality. In fact, in 2019 UK nationals constituted the largest single nationality of people referred into the National Referral Mechanism – the UK government’s system for identifying and supporting victims of modern slavery.

Since the introduction of the Modern Slavery Act in 2015, many businesses have become aware of the term ‘modern slavery’, because of the requirement the Act places on businesses. Section 54 of the Modern Slavery Act is the Transparency in Supply Chains clause which, in summary, requires any business which operates (at any level) in the UK with an annual turnover of £36 million or more to produce an annual modern slavery statement which is publicly accessible.

While the compliance rate fluctuates (currently around 79% of companies required to publish a statement have done so), so too does the quality of the reports, which often betray a limited understanding of the crime, how it might affect a business and how best to respond (though it must be noted that the content of the statements is not officially assessed; compliance rests entirely on whether or not a statement is published, regardless of what the statement says).

Labour exploitation is the most common form of modern slavery identified in the UK and it is important that businesses have a good working knowledge of how to protect their supply chains from it. Below are some practical steps that businesses can take to limit risk.

First of all, when you begin to look for labour exploitation in your supply chain, you should expect to find it. Exploiters will always aim to be at least one step ahead and concerns may not initially be apparent. Those who are being exploited may be reluctant to come forward, so the onus is on you to identify an issue rather than relying on it being brought to your attention.

While it is important for directors and management to be aware of what modern slavery is and how it presents, especially in regards to developing a high-quality modern slavery statement, they are unlikely to be the ones that come into contact with exploitation within the supply chain. Training should be targeted at the lowest level, to ensure that those who are likely to come into contact with potential victims are aware of what to look for and what they should do if they have concerns.

You should create safe reporting mechanisms within your organisation so that potential victims, or those that have concerns, have somewhere to ask for support or share information. Guidance on how to report into this mechanism should be readily available to all staff. However, don’t share how you will act on intelligence, as once this information reaches an exploiter, they will find a way to work around it. Consider it a positive when concerns are raised as this means that your reporting mechanism is effective.

While a ‘zero tolerance’ approach to modern slavery might seem logical, it could actually encourage rather than deter exploitation. Instead of ending a contract with a supplier you have concerns over, provide them with a list of issues they need to fix and a deadline by which these must be done. Only if that date comes and significant progress has not been made should you end the contract. To end the contract at the first concern runs the risk of allowing the exploiter to continue to operate elsewhere and potentially failing to get assistance to the people who need it.

Provide all staff with information on their rights and entitlements in languages they can access.

If possible, run regular informal worker interviews with all staff so that you have the chance to speak with workers individually. If this is established as standard practice then it provides the opportunity to have private conversations with staff members without raising alarm bells for exploiters. Getting to know your workers in this way is also a method of demonstrating that you are proactive about due diligence.

If you have concerns about exploitation in your supply chain, the Gangmasters and Labour Abuse Authority (GLAA) may be able to offer assistance. The GLAA exists to protect vulnerable and exploited workers and investigate reports of labour exploitation, human trafficking, forced labour, illegal labour provision and offences that sit under the National Minimum Wage Act and The Employment Agencies Act. You can report a concern to GLAA on 0800 432 0804.