PRINCIPLE FOUR

Businesses should uphold the elimination of all forms of forced and compulsory labour.

Forced and Compulsory Labour

Forced or compulsory labour is any work or service that is extracted from any person under the menace of any penalty, and for which that person has not offered himself or herself voluntarily. Providing wages or other compensation to a worker does not necessarily indicate that the labour is not forced or compulsory. By right, labour should be freely given and employees should be free to leave in accordance with established rules.

Forced labour deprives societies of the opportunity to develop human resources for the modern labour market, and to develop skills and educate children for the labour markets of tomorrow. The debilitating consequences of forced labour are felt by the individual, in particular by children, as well as by the economy itself since the degradation of human capital and social stability results in insecure investments.

By retarding the proper development of human resources, forced labour lowers the level of productivity and economic growth for society generally. The loss of income due to disruption of regular jobs or income-generating activities reduces the lifetime earnings of whole families and with it, the loss of food, shelter, and health care.

While companies operating legally do not normally employ such practices, forced labour can become associated with enterprises through their use of contractors and suppliers. As a result, all managers should be aware of the forms and causes of forced labour, as well as how it might occur in different industries. Forced and compulsory labour can take a number of forms:

• slavery,
• bonded labour or debt bondage, an ancient practice but still in use in some countries, in which both adults and children are obliged to work in slave-like conditions to repay debts of their own or their parents or relatives,
• child labour in particularly abusive conditions where the child has no choice about whether to work,
• the work or service of prisoners if they are hired to or placed at the disposal of private individuals, companies or associations involuntarily and without supervision of public authorities,
• labour for development purposes required by the authorities, for instance to assist in construction, agriculture, and other public works,
• work required in order to punish opinion or expression of views ideologically opposed to the established political, social or economic system,
• exploitative practices such as forced overtime or the lodging of deposits (financial or personal documents) for employment,
• physical or psychological violence as a means of keeping someone in forced labour (direct or as a threat against worker, family, or close associates)
• full or partial restrictions on freedom of movement,
• withholding and non-payment of wages (linked to manipulated debt payments, exploitation, and other forms of extortion),
• induced indebtedness (by falsification of accounts, charging inflated prices, reduced value of goods or services produced, excessive interest charges, etc.), and
• threats to denounce to the authorities workers in an irregular situation

Strategies for Business

Organizations need to determine whether forced labour is a problem within their business sector. It is important to mention that, although high profile cases are typically reported as occurring in developing countries, forced labour is also present in developed countries and as such should be viewed as a global issue.

Understanding the causes of forced labour is the first step towards taking action against forced labour, which requires a comprehensive set of interventions to address not only the needs of individual forced labourers but also the needs of their families. Therefore, if forced labour is identified then these individuals should be removed and facilities and services should be provided to enable them to make adequate alternatives.

In general, a combination of workplace and community actions is needed to help ensure the eradication of forced labour practices.

In the workplace

• have a clear policy not to use, be accomplice in, or benefit from forced labour
• ensure that all company officials have a full understanding of what forced labour is
• be aware of countries, regions, industries, sectors, or economic activities where forced labour is more likely to be a practice
• make available to all employees, employment contracts stating the terms and conditions of service, the voluntary nature of employment, the freedom to leave (including the appropriate procedures) and any penalties that may be associated with a departure or cessation of work
• in planning and conducting business operations, ensure that workers in debt bondage or in other forms of forced labour are not engaged and, where found, provide for the removal of such workers from the workplace with adequate services and provision of viable alternatives in the community of operation
• institute policies and procedures to prohibit the requirement that workers lodge financial deposits with the company
• if hiring prisoners for work in or outside prisons, ensure that their terms and conditions of work are similar to those of a free employment relationship in the sector involved, and that they have given their consent to working for a private employer
• ensure that large scale development operations in which an employer participates do not rely on forced labour in any phase
• carefully monitor supply chains and subcontracting arrangements
• write employment contracts in languages easily understood by workers, indicating the scope of and procedures for leaving the job

In the community of operation

• assist in the development of guidelines by sectoral industrial associations and small or medium enterprises where debt bondage or such practices are known to be commonplace
• support and help design education, vocational training, and counseling programmes for children removed from situations of forced labour
• help develop skills training and income-generating alternatives, including micro-credit financing programmes, for adults removed from situations of forced labour
• encourage supplementary health and nutrition programmes for workers removed from dangerous forced labour, and provide medical care to assist those affected by occupational diseases and malnutrition as a result of their involuntary work
• where use is made of prison labour, ensure that the terms and conditions of work are beneficial to the prisoners (particularly with regard to occupational health and safety), and that they have given consent to work for a private employer

(Last update on 18 December 2008)