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Modern Slavery A Contractor’s perspective Andrew Kinsey
#lcecMS #lcecEvents
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Modern Slavery A Contractors perspective Andrew Kinsey #lcecMS - - PowerPoint PPT Presentation
Modern Slavery A Contractors perspective Andrew Kinsey #lcecMS - - PowerPoint PPT Presentation
Modern Slavery A Contractors perspective Andrew Kinsey #lcecMS #lcecEvents Not Confidential - Internal Andrew Kinsey Not Confidential - Internal Mace is an international consultancy and construction company employing over 6,000 people,
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Mace is an international consultancy and construction company employing over 6,000 people, across five continents with a turnover of over £2bn in 2017/18
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Modern Slavery is not an issue confined to history, or an issue that
- ccurs elsewhere.
It is still happening today. It is a global problem and the UK is no exception.
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40.3 million
people in modern slavery in 2016
29%
Male
71%
Female
See how many work for you at http://slaveryfootprint.org/
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People trafficking is one
- f the largest international crime
industries Estimated profit from trafficking $150 billion dollars UK is one of the largest importers
- f at risk products ($18bn pa)
Modern Slavery is big business
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“In the European Union, construction ranks second only to the sex industry as the sector most prone to exploitation”
Source: CIOB
Construction: A high risk industry
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Catastrophic failure of cast iron strainer under test
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There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown
- unknowns. There are things
we don’t know we don’t know. Donald Rumsfeld, 2013
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An increasing demand for assurance & rise in responsible investing
1990s 2000s 2010s
TELL ME…
E S G
Environmental Social Governance
Socially Responsible Investing
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Right to work checks
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Client Principal Contractor 1st Tier Contractor (Ground Works) 1st Tier Contractor (MEP) 1st Tier Contractor (Brick and Block) Direct permanent Labour 2nd Tier Contractor (AC units) 2nd Tier Contractor (Insulation) 2nd Tier Contractor (Lighting) 3rd Tier Contractor (Compressor) 3rd Tier Contractor (Evaporator) 3rd Tier Contractor (Condenser) Direct permanent Labour & labour agencies Direct permanent Labour & labour agencies Direct permanent Labour & labour agencies 1st Tier contractor (Logistics) Multiple labour agencies Materials Labour (???) Services Products Parts Manufacturers Labour (???) Recruitment agents ?? Recruitment agents ??
Why is labour a high risk? Example….
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Contracts - Recruitment and supply chain principles
Recruitment in the supply chain Principles for recruiters
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Automated Passport Checking
Photo credits: Alandale, J Coffey
✓
Near Infra Red Face Match Ultra Violet Optical
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Labour tools & certification schemes
www.responsiblerecruitment.org
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Awareness Raising & Reporting
Speak Up Independent Reporting Service Unseen App Awareness Cards
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Awareness Raising & Reporting
Construction Forum
Collaboration with others Workshops with MS charity Hope for Justice
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Internal Audit - Worker Interviews UK
Sample Size: 65
98% 95% 2% 3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Receive at least 1 day off in every 12 days Required to demonstrate your entitlement to work when starting employment Sufferered/aware of other employees suffering physical or verbal abuse Suffered/are aware of other employees suffering any discrimination (race, gender or any other)
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Internal Audit - Qatar
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Internal Audit - India
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Internal Audit - Dubai
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BES 6002 Ethical Labour Standard
Emerging / Developing Standards
Responsible Sourcing Schemes
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SEDEX Ethical Risk & Auditing
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Inherent Country (and product) Score 0-10 Country / sector scores & from United Nations Standard Products and Services Self Assessment Questionnaire Score Based on tailored questionnaires for different sector profiles in 5 areas Overall Risk Score (=Risk Profile)
Assessing risks
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Spread of risk profiles on suppliers on the SEDEX system
Logic
Companies should be able to engage any supplier, anywhere in the world even if they present a high level of inherent risk exposure. In order to engage these suppliers with confidence, you need to understand they are managing their risk and demonstrating continuous improvement thus moving from higher to lower risk
Suppliers on the Sedex system show on the Risk Charts as black dots. White Dots are modified scores based on audits that have been completed
Pre-screening
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Where is the risk?
METALS PLASTICS GLASS FIXINGS CLADDING
Tier 2 Suppliers Tier 1 Suppliers Tier 3 Suppliers Tier 3 Suppliers
Priority 1? Priority 2?
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Stone manufacture
Profile Risks Labour Risks Health & Safety Risks Business Ethics Risks Overall Risk Environment Risks
Overall Risk 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Top 5 Countries - Overall Risk Source: Sedex Western Sahara 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Syria 6.86 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Somalia 6.84 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Congo, Republic of the 6.67 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Korea, North 6.63 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Profile Risks 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Top 5 Countries - Profile Risks Source: Sedex Western Sahara 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Korea, North 7.53 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Somalia 7.53 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Turkmenistan 7.15 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Syria 7.06 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Labour Risks 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Top 5 Countries - Labour Risks Source: Sedex Western Sahara 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Syria 7.35 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Congo, Republic of the 7.33 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Pakistan 7.27 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Somalia 7.26 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Health & Safety Risks 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Top 5 Countries - Health & Safety Risks Source: Sedex Western Sahara 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Central African Republic 6.93 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Congo, Republic of the 6.75 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Guinea 6.61 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Chad 6.45 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Business Ethics Risks 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Top 5 Countries - Business Ethics Risks Source: Sedex Congo, Republic of the 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Korea, North 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Somalia 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Western Sahara 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Central African Republic 7.51 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Environment Risks 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Top 5 Countries - Environment Risks Source: Sedex Nauru 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Western Sahara 7.55 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Palau 6.48 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Micronesia, Federated States o 6.39 |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| Marshall Islands 6.33 ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| SLIDE 39
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What we can do with risk profiles
Inform procurement about the pre- screen risks Collaborate Work with high risk suppliers SMETA Audits Map out supply chain
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SMETA (Sedex Members Ethical Trade Audit)
- Audit format which is a compilation of good practice in ethical audit
techniques
- Designed to help auditors conduct high quality audits that encompass all
aspects of responsible business practice, while reducing ‘audit fatigue’ for suppliers
- Created & evolved by the Sedex Stakeholder Forum (SSF)
- Estimated 35,000 SMETA audits conducted annually
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Challenges in detecting modern slavery
Forced labour and human trafficking can be difficult to detect.
- Less than 1% of issues raised fall under (ETI)’s ‘Freely Chosen Employment’
clause
- A need to ensure due diligence includes areas of greatest risk and tools,
protocols and policies & to establish mechanisms to protect workers
- Assessments must focus on how workers get their jobs, including whether any
recruitment fees are paid by workers at any stage
- Worker interviews need to be planned carefully to ensure vulnerable workers
feel comfortable raising concerns
- Audit procedures need to work alongside other assessment strategies and
training
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Operational Indicators of Forced Labour
Sedex’s ‘Operational Indicators of Forced Labour Guidance’ outlines the indicators which can suggest where there is a risk of forced labour in a worker’s employment cycle. Reports within Sedex platform flag where multiple ‘indicators’ are identified at sites.
“Forced labour occurs on a spectrum of exploitation – sometimes it is a combination of factors which lead to a forced labour situation.”
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What does the future look like?
A fully transparent supply chain Procurement supplied with information on MS risk SMETA or similar audits for the highest risk suppliers Eradicate Modern Slavery
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Modern slavery is on our construction sites and in our supply chain. Gang masters do target recruitment agencies. There is no one method fits all. There are a number of tools
- ut there to use .
By collaborating with others we can tackle this together and eradicate modern slavery from construction.
Summary
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