Government urged to prioritise Modern Slavery Legislation

17 Jul 2024 by World Vision
Government urged to prioritise Modern Slavery Legislation

The Government is being encouraged to prioritise advancing legislation to address modern slavery — a move experts and stakeholders believe is important for New Zealand's commitment to human rights, sustainability, and global market competitiveness.

In a surprise move, the Modern Slavery Leadership Advisory Group (MSLAG), established in 2021 to aid the development of modern slavery legislation under the previous Government, was disbanded earlier this year by the National-Act-New Zealand First administration.

This group comprised representatives from the business community, trade union organisations, NGOs, Te Kāhui Tika Tangata Human Rights Commission, and academia.

Members of the former MSLAG expressed their hope that the Government would address the important issue of modern slavery, emphasising that collaborative efforts and practical solutions are essential to eradicate modern slavery both domestically and globally.

The group believes that progressing modern slavery legislation would align New Zealand with international standards and expectations.

Previous support for modern slavery legislation has included a letter from New Zealand businesses signed by more than 100 companies, calls from investors with more than $295 billion in assets, a 38,000-strong signature petition, and widespread public endorsement.

Industry leaders say that modern slavery legislation will ultimately reduce complexity and bureaucracy for businesses because everyone will be operating on a level playing field and it will ensure fair competition and protect their interests.

World Vision’s Head of Advocacy and Justice, Rebekah Armstrong, says support for modern slavery legislation is overwhelmingly positive because it affords a level of protection and assurance to our business interests.

“Businesses want legislation to address modern slavery because it provides a framework and guidance for them to meet international standards when exporting and importing products.”

Dr Christina Stringer, Director, Centre for Research on Modern Slavery at the University of Auckland Business School, says the lack of progress is disheartening.

“New Zealand has now fallen further behind our international trading partners, many of whom have increasing expectations for frameworks that ensure modern slavery does not take place in global and domestic supply chains. The lack of action undermines our global standing and confidence among global investors and trading partners.”

International regulations, such as the European Union's Corporate Sustainability Due Diligence Directive (CSDDD), are setting new standards for human rights and environmental due diligence.

Countries like Germany, France, Norway, and Switzerland have already implemented or are developing similar laws, demanding comprehensive due diligence from companies. These regulations carry significant penalties for non-compliance, including fines of up to 5% of global turnover and mechanisms for civil liability.

Prof. Natalia Szablewska of The Open University highlighted the potential risk to existing trade agreements.

“The pressure on New Zealand businesses to address modern slavery in their supply chains has grown exponentially. Failing to align New Zealand’s laws with international standards puts existing agreements as well as future trade negotiations at risk.”

Former MSLAG chair Rob Fyfe warned of the risk to New Zealand’s reputation.

“We have a proud heritage as a nation standing up for what’s right and fair. Yet our voice is now missing on this issue, while people are being abused and their lives destroyed, producing goods and services that we consume. Modern slavery legislation is needed to bring us into step with a number of our key trading partners and meet the growing expectations of our domestic and international consumers.”

The general secretary of First Union, Dennis Maga, agrees and says both workers and consumers want a law introduced.

“It’s really difficult to understand why the Government does not prioritise this legislation when there has already been a consultation process garnering extremely positive support from various sectors,” he says.

Acting Chief Human Rights Commissioner Saunoamaali’i Karanina Sumeo noted the increasing international scrutiny.

“At our recent Universal Periodic Review at the United Nations, large economies like the UK, USA, Mexico, and Brazil recommended New Zealand implement modern slavery legislation.”

Modern Slavery specialist, Gary Shaw added, “To pursue prosperity, growth and success on the back of modern slavery makes such prosperity a sham, compromises sustainable growth and makes a travesty of our apparent success, undermining the fairness and equality from which we derive our very identity as New Zealanders.

“The delay in introducing modern slavery legislation is not just a policy failure; it is a moral failing that impacts vulnerable workers worldwide,” he says.

Serena Grant, Director of Business and Human Rights at Walk Free, emphasised the importance of legislation, saying: “Modern slavery legislation is critical not only for protecting human rights but also for maintaining New Zealand's reputation in the global market. Companies are increasingly required to prove their supply chains are free from exploitation, and without this legislation, New Zealand businesses are at a significant disadvantage.”

Experts and industry leaders are extremely concerned that delaying modern slavery legislation breaches free trade agreements, undermines New Zealand's global reputation, and will likely deter investors.

In light of these concerns, former members of the MSLAG are calling for immediate government action and a public commitment to progress legislation within this term of government, including a clear timeframe for when this work will start.

Former MSLAG members and other stakeholders stand ready to provide the necessary expertise and support to expedite the development and implementation of modern slavery legislation. The time for action is now to safeguard New Zealand’s trade interests, protect its reputation, and uphold human rights.

*The modern slavery leadership advisory group was established in 2021 by the New Zealand government to advise on modern slavery legislation. Members of the group include Rebekah Armstrong, Head of Advocacy and Justice, World Vision New Zealand; Serena Grant, Director of Business & Human Rights, Walk Free; Kiri Hannifin, Chief Sustainability Officer, Air New Zealand; Paul MacKay, Manager Employment Relations Policy, Business New Zealand; Dennis Maga, General Secretary, FIRST Union; Gareth Marriott, Managing Director Australia and New Zealand at OCS and Chair Sustainable Business Council New Zealand; Gary Shaw, Modern Slavery Specialist and Sustainability Consultant; Saunoamaali’i Karanina Sumeo, Acting Chief Human Rights Commissioner, NZ Human Rights Commission; Dr Christina Stringer, Associate Professor in International Business; Director, Centre for Research on Modern Slavery, University of Auckland Business School; Dr Natalia Szablewska, Professor of Law, The Open University Faculty of Business and Law, UK & Chair of Business and Human Rights Subcommittee for Australian Lawyers for Human Rights.