Slavery laws would force Australian fashion labels to be more ethical report – The Guardian

A report examining 106 clothing companies that operate or sell in Australia found that none could guarantee everyone who worked along their supply chain was paid a living wage. Photograph: Alamy Stock Photo

Introducing modern slavery laws would force Australian clothing companies to clean up their supply chains and catch up with international competitors, the authors of the annual Baptist World Aid Ethical Fashion Report have said.

The report, released on Wednesday, investigated the workers rights policies of 106 clothing companies that operate or sell in Australia. It found the proportion of companies that were actively trying to trace their supply chain had increased from 49% in 2013 to 81% in 2017, but only 7% knew where all their cotton was manufactured.

It also found none of the surveyed companies could guarantee that everyone who worked along their supply chain was paid a living wage. Only one company, Australian-owned Mighty Good Undies, could guarantee that everyone involved in the final stage of its production processes was paid a living wage.

The Baptist World Aid advocacy manager, Gershon Nimbalker, said the majority of companies surveyed had greatly improved their practices since the first report in 2013, but a small number were lagging behind.

Nimbalker said modern slavery laws, similar to those recently introduced in the UK which require businesses to disclose what they are doing to minimise the risk of slavery in their supply chain, would force those companies to improve.

Where companies are sourcing from regions or nations that have low law enforcement, poor industrial relations systems, and they dont have traceability, the risks of the worst forms of exploitation, including slavery, are very high, he told Guardian Australia.

One of the reports Im getting back [on the effect of modern slavery laws in the UK] is that it has absolutely lifted the consciousness that people have that companies need to be doing more, or at least being seen to do more, to address the problems of slavery throughout its supply chain.

Australia launched a parliamentary inquiry into introducing modern slavery laws in February.

The mining magnate Andrew Forrest has thrown his support behind the proposed laws, telling a forum this month that Fortescue Metals Group had audited its supply chain and discovered some of its suppliers used forced labour.

Nimbalker said he had toured fabric mills in India that used child labour or bonded labour, and there was an enormous risk fabric manufactured through slavery would end up in garments in Australian stores.

Consumers have a huge capacity to make a difference in this, he said. We hear from companies all the time that its building trust with their consumer base that they all really value. So when consumers preference those companies that are doing more to support workers and vote with their wallets in that way then they encourage the industry to improve. And they call on the laggards to lift their game. The companies hear that and they respond.

The Ethical Fashion Report grades companies on their knowledge of suppliers at the raw material, inputs and final production stages, as well as on the strength of their policies and the level of transparency they provide to consumers.

Nine companies, including Patagonia, Cotton On, Adidas, Liminal Apparel, Inditex (which produces Zara), Nudie Jeans and Pacific Brands received an A grade, while ethical clothing companies Mighty Good Undies, Etiko and RREPP received an A+.

Ten companies received an F: Wish; Corporate Apparel Group, which produces the brands Ron Bennett, Sew253 and Get Formal; Roger David; Voyager Distributing Co, producing Jump, Kachel and Ping Pong; Oxford; Ally Fashion; Betts; Bloch; Decjuba; and Farmers.

Baptist World Aid said while all 10 companies declined to take part in the report, Corporate Apparel Group pointed to the governance policies on its website.

Oxford also responded by detailing its social audit process, which checks each factory for the use of child labour, forced labour, health and safety, working hours and other employment practices. It said those reports were too sensitive to release but invited Baptist World Aid to inspect them in person, adding: Our concern for worker exploitation is evidenced by our commitment and perseverance to ensuring organisations within our supply chain consistently treat their employees fairly and humanely.

Separately, Decjuba told Guardian Australia it was not obliged to complete or participate in the ethical fashion survey but was continually working to evolve our ethical footprint in line with its ethical supply principles, which included a requirement for workers to be paid a living wage and zero tolerance for child labour.

Guardian Australia contacted all 10 companies that received an F grade prior to publication. Those companies had declined to participate in the survey rather than being found to be non-compliant.

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Slavery laws would force Australian fashion labels to be more ethical report - The Guardian