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Responsible Electronics 2013: Human Trafficking and Bonded Labor
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Responsible Electronics 2013: Human Trafficking and Bonded Labor

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Presentations from the EICC conference Responsible Electronics 2013, Oct 1-3 in California.

Presentations from the EICC conference Responsible Electronics 2013, Oct 1-3 in California.

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  • 1. The Electronic Industry Citizenship Coalition Welcomes you to Sponsored by
  • 2. HUMAN TRAFFICKING FORCED LABOR  MODERN SLAVERY  COMPELLED SERVICE Photo/Wilfredo Rodríguez
  • 3. “ Social scientists estimate that as many as 27 million men, women and children are trafficking victims at any given time. That means we’re bringing to light only a mere fraction of those who are exploited in modern slavery. That number and the millions who remain unidentified, are the numbers that deserve our focus.” - 2013 Trafficking in Persons Report, U.S. Department of State
  • 4. IS THIS WHAT HUMAN TRAFFICKING LOOKS LIKE? Photo/Michael Coghlan
  • 5. TRAFFICKING IN ELECTRONICS RAW MATERIALS  MANUFACTURING  TRANSPORTATION  CONTRACTORS
  • 6. TRAFFICKING IN ELECTRONICS RAW MATERIALS  MANUFACTURING  TRANSPORTATION  CONTRACTORS Photo/Institute for Global Labour and Human Rights CHALLENGES: FRAGMENTED SUPPLY CHAINS  RELIANCE ON TRADITIONAL CSR  INCREASING RISK
  • 7. COMPLIANCE CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT (SB 657)  FEDERAL ACQUISITION REGULATION 52-222.50 Photo/Julien Harneis
  • 8. FOR MORE INFORMATION ON THE GLOBAL FREEDOM CENTER TRAINING AND CONSULTING SERVICES: Ksreeharsha@GlobalFreedomCenter.org 415.967.1896 www.GlobalFreedomCenter.org
  • 9. The Electronic Industry Citizenship Coalition Welcomes you to Sponsored by
  • 10. Can labour recruitment be ethical and profitable?
  • 11. Taiwan Broker’s Service Fees - 10% Sending country placement fees 15% Interest on loans in sending country – 10% “Savings” – 17% Board and Lodging – 20% Balance that goes to the worker – 28% Source: Verité, 2009, Currency exchange in 2009 - NTD Breakdown of a Filipino Worker’s Wages for a 2-year Contract in Taiwan (NT414,720*), 2009
  • 12. Indonesia Philippine s Vietnam Thailand Banglades h China Nepal Cambodia Myanmar Malaysia 630 - 980 1,100 2,400 No data 3,500 NA 1750 – 2100 1200 – 1500 1,500 – 1700 Taiwan 3,200 – 4,000 1,700 – 3,000 5,000 – 8,000 3,200 – 4,900 NA NA No Data No Data No Data Singapore No data No Data 3,600 – 5,000 No data NA 7,000 - 12,400 No Data No Data No Data Japan 6,000 – 9,000 3,000 – 5,000 8,000 – 15,000 6,000 – 8,500 No Data No Data No Data No Data No Data Korea 5,000 – 8,000 3,000 – 4,000 7,000 – 12,000 5,000 – 7,500 No Data No Data No Data No Data No Data Range of Total Recruitment Fees & Expenses Paid by Workers (in USD)
  • 13. Item (*Should be paid by Employer) Fees paid by workers (PHP) *Processing fees 2,177.63 OWWA Contribution 1,088.63 *Medical examination 2,500.00 *Visa 3,100.00 *Air Ticket 7,000.00 passport 900.00 NBI 115.00 Birth Certification 115.00 *Pre-departure Seminar (PDOS) 100.00 TOTALPHP 17,096.26 (US$400.00) Actual Fees Paid by Taiwan-Bound Workers (Philippine Example) **
  • 14. Typical Fees Paid by Jobseekers: US$3,000/person Excluding Passport, Medical, Clearances. No visibility to how costs are actually broken down. Actual cost if Employer Pays: US$1150/per person Including recruitment, hiring, pre-departure training, life- planning, personality testing, skills testing, worker hotline, monitoring Sample cost comparison (Filipinos going to Taiwan)
  • 15. Build Demand for Ethical Recruitment Demonstrate that good practice is doable and profitable Increase supply of ethical recruitment providers Hit Tipping Point: Significant increase in number of workers recruited ethically, decrease in broker-related debt bondage and its impacts. Support Broker Accreditation Differentiate good from bad brokers Ensure new players are equipped to sustain good practice Campaign for Supportive Policy Environment in Host and Sending countries Enforce a no-fees to workers policy Use known ethical recruiters Pay for recruitment services Enforce the policy in supply chain Set controls for sustained broker good practice Terminate business with known violators, and make suppliers do the same Make it a violation of your gift- giving policy to receive free services from a labor supplier
  • 16. Address immediate challenges to enforcement of a no-fees policy Entrenched Relationships, Collusion Cost increase (real or perceived) Weak broker selection and monitoring processes General resistance to change
  • 17. Thank You! For questions, contact me at: Marie Apostol marie@fairhiringinc.com
  • 18. The Electronic Industry Citizenship Coalition Welcomes you to Sponsored by