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On any given day in 2021, globally there are about 28 million men, women, and children who are trapped in forced labour which has resulted in a staggering $323.6 Billion CAD in illegal profits per year (International Labour Organization, 2024). These numbers are of documented cases, however there are many more hidden organizations that are exploiting humans for capital gain. These numbers will continue to climb every year if action is not taken by the international community.
As of May 2023, the Canadian government responded to this call to action by passing Bill S-211: Canada’s new modern slavery law [S-211]. This bill is similar to the United States Uyghur Forced Labor Prevention Act (UFLPA).
Canada’s new Modern Slavery Act S211 is a significant step in combating forced labour in Canadian supply chains. By focusing on transparency, this allows accountability of companies profiting from exploitative practices and the eradication of forced labour from Canadian supply chains.
Almost every sector of the economy is at risk of involving forced labour in the manufacture or assembly of products and their components. Forced labour can touch almost any sector in the private economy such as:
(International Labour Organization, 2024)
Understanding the Modern Slavery Act S-211
To comply with the bill S-211, private importers have new reporting obligations that need to be submitted to the Minister of Public Safety. Importers are required to publish an annual report describing their due diligence measures on supply chains. In order to comply with the S-211 act, companies annually are required to provide detailed information with regards to:
Failure to follow these new obligations or providing false or misleading statements, each of these is a summary conviction offence and liable to a fine of up to $250,000.
The Importance of Transparency in Supply Chains
It's not just a matter of financial penalties, but the morals and ethics behind forced labour. Consumers are being more proactive about the sourcing of the products they are purchasing. Many are not hesitating to boycott and lobby against companies and brands that are violating human rights. By making reports around due diligence of supply chains open to the public, companies are encouraged to make sure they are maintaining ethical practices.
Through requiring transparency, this bill encourages better practices among importers and suppliers. Further, Canada is proactively working with other foreign governments to instill fair and ethical trade while taking steps to end forced labour and child labour (Mason 2022).
Asia and the Pacific regions are some of the most exploited regions in the world, but certainly not the only exploited regions. Exploitation of human labour knows no boundaries and some organizations will continue doing so simply for profit. They will be creative in trying to bypass legislation and rerouting supply routes to get their products to market. Maintaining proper traceability and transparency is a step in the right direction to ending oppressive practices.
Peer Ledger’s Role in Fighting Modern-Day Slavery
Peer Ledger’s Digital Product Passport Platform provides a versatile, multi-industry system to meet the country's emphasis on preventing forced labour regions from entering Canada.
Core Features:
The Road Ahead: Ensuring Compliance and Ethical Practices
Billions of dollars are unlawfully being pocketed by very few while millions are made victim to labour exploitation. Through performing and maintaining proper due diligence and supply chain management, companies will be able to better mitigate their risks associated with the importation of forced labour tainted goods into Canadian borders.
Having systems like Peer Ledger’s Digital Product Passport helps keep companies on top of their supply chain management as well as meeting legislative requirements. Supply chain traceability and transparency is no longer simply an option. It is now mandatory for companies to take responsibility for ethical sourcing.
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