Complex value chains are a fundamental feature of the global economy, linking developing and developed economies, raw materials and finished products, workers and consumers. Liberalisation and technological innovations have enabled production processes to be broken down into smaller and smaller components, outsourced to utilise the cheapest labour costs or most advantageous regulations.
In this race to drive down costs, labour and safety standards are often squeezed the hardest. In industrialised countries, a trend towards casualisation of labour sees short-term or “zero-hour” contracts in many industry sectors becoming standard practice to maintain the leanest staffing arrangements possible. At the same time, migration for low-skilled jobs continues to rise. These workers routinely pay broker fees to secure their jobs, putting themselves at risk of debt bondage, forced labour and other forms of modern-day slavery. The ILO estimates 21 million people (half of which are women), are trapped in forced labour, of which 90% are in supply chains. The majority of these workers have no access to trade union protection or to legal remedy where abuses occur.
Women’s empowerment must remain a top priority for governments and business alike in order for the benefits of growth and prosperity to be shared equitably along the value chain. Globally, women tend to be less integrated into value chains than men, thus less able to participate in economic gains. The realisation of SDG5 on Gender Equality and SDG8 on Decent Work and Economic Growth are fundamental to ensuring that women and girls have improved access to education and training, finance and services, and higher-skilled job opportunities with meaningful decision-making potential.
The 2015 G7 Leaders’ Statement committed to “promote better working conditions by increasing transparency, promoting identification and prevention of risks and strengthening complaint mechanisms.” It also highlighted the joint responsibility of governments and business to foster “sustainable supply chains and encourage best practices.”
It is critical that commitments to upholding international standards in global supply chains be revitalised, starting with the 2017 G20 Summit under the German presidency. Improved protection for workers rights lies at the heart of levelling the playing field along the whole value chain.