Modern slavery in maritime supply chains

The Maritime Union of Australia and the UN Global Compact Network Australia in December launched a publication detailing how exploiting seafarers’ rights can amount to modern slavery at sea

In 2022, the Maritime Union of Australia and the UN Global Compact Network Australia collaborated on a publication aimed at managing modern slavery risks in supply chains.

Modern Slavery within Maritime Shipping Supply Chains is intended as guidance to help Australian businesses identify and mitigate adverse human rights impacts that may arise from their use of maritime shipping. The work focuses on key indicators of forced labour, seafarer perspectives and practical steps available to businesses.

The MUA and UN Global Compact Network Australia released their publication at a hybrid launch event in December. Representatives from both organisations addressed a diverse audience of companies and supply chain stakeholders both online and at the KPMG office in Sydney.

NECESSARY GUIDANCE

A common theme throughout presentations and conversations was an apparent lack of clarity around the shipping component of end-to-end supply chain processes, and how seafarers’ human rights fit into it.

Report co-author and UN Global Compact Network Australia human rights manager Chris Caskey explained from the outset how the modern slavery problem applies to the seafaring workforce. He recalled figures from the height of the crew-change crisis – that an estimated 800,000 seafarers were unable to leave their ship, according to the International Transport Workers’ Federation.

“This created a situation where the work that was conducted on board those ships was considered to be forced labour,” Mr Caskey said.

“The UN Global Compact’s work at the time was to call to action business and cargo owners in particular to align with the expectation to respect the human rights of those within their value chains.”

Mr Caskey said the UN Global Compact Network Australia had boarded ships alongside the ITF inspectorate to speak with crewmembers as part of the research process. The goal was to ensure the tone of the publication aligned with seafarers’ perspectives.

He said seafarers highlighted power imbalances onboard, fatigue and a lack of available staff, ongoing challenges around mental health and isolation and issues with remuneration.

A COMPLEX INDUSTRY

Vanessa Zimmerman, director and chair of the business human rights workstream at the UN Global Compact Network Australia, recalled a time in recent years when many businesses would consider modern slavery in their supply chains but overlook the shipping component.

Even now, she said, many are still finding it difficult to engage with shipping partners, simply because they don’t know how. She discussed the UN Guiding Principles (UNGP) on Business and Human Rights – a corporate responsibility initiative – and how businesses need to focus on the shipping value chain when they consider their responsibilities under the UNGPs.

“It is important for companies to think about not just the reputational or financing or legal risks that it might be facing – but the very real risk that seafarers might be facing as well,” Ms Zimmerman said.

“There needs to be an ongoing effort to make sure you understand the risks and to also make sure you really understand the context in which the risks are going on.”

Using charterers as an example, Ms Zimmerman said it is unlikely the charterer is causing modern slavery at sea. However, she said they might be contributing to harm by, for instance, mandating unreasonable conditions for the carriage of cargo which results in workers being exploited.

“What is a really important exercise for you to do, if you’re a charterer, is try and think about your own acts and omissions and your own kind of practices in relation to your shipping partners which might cause you to fall into the contribution bucket or the cause bucket.”

IDENTIFYING MODERN SLAVERY

Speaking on behalf of the MUA and International Transport Workers’ Federation, ITF inspectorate co-ordinator Ian Bray said the inspectorate’s team of five had carried out around 550 vessel inspections across Australia over 2022.

He said the team was also on track to have recovered between $6.5 and $7.5 million in unpaid crew wages by the end of 2022.

“Despite all of the good intentions and the willingness, particularly the activity around highlighting what goes on at sea… it just goes to show that we’ve got a hell of a long way to go,” Mr Bray said.

He said publications such as Modern Slavery within Maritime Shipping Supply Chains and Robbed at Sea – a report on wage theft published in September – help businesses understand the forms modern slavery can take at sea.

“The more awareness around these things and the more that we do to try to eradicate it… the better off we’ll be and the better off the seafarers will be in terms of making their working lives a little bit more tolerable in probably one of the most isolated jobs on the planet.”

ENDING EXPLOITATION

MUA policy advisor and publication co-author Rod Pickette reiterated the publication’s relevance for cargo owners and procurers in terms of their obligations around modern slavery.

Mr Pickette discussed businesses’ ESG approaches and drew parallels between the environmental and social aspects. He said there needs to be goals in place for the social aspect of ESG, just as there are goals for the environmental aspect.

“What’s the goal here? It’s the elimination of exploitation of workers,” he said.

“Each piece of work we’re doing here is a building block towards getting us to those same sorts of goals: elimination of exploitation and dealing with those sorts of risks in supply chains.”

MUA national secretary Paddy Crumlin said the maritime industry is “dominated by a lack of transparency”. He explained the mechanics of the flag state system and how human rights problems can stem from registering ships under so-called flags of convenience.

“This is the first international industry that’s regulated across national boundaries other than compliance by recommendation or by convention,” Mr Crumlin said.

He reiterated the impact the crewchange crisis had on the seafaring community, and how the additional pressure had led to mental breakdown and high suicide rates.

“All of that translates into an industry in dire crisis. If shipping fails … it’s because the supply chain is so deregulated and that there were no controls. So, when it did break down under the unforeseen pressure of the pandemic, there were no risk mitigations.”

Mr Crumlin said it was not a matter of blame, but of sharing responsibility for addressing human rights issues in the maritime industry.

“This is everybody’s problem. It’s a commercial problem, it’s a political problem, it’s a human problem.”