Commentary: Is Australia's anti-slavery bill tough enough?
28 June 2018
...the Australian Government introduced a new bill to Parliament to improve conditions for workers...by stamping-out egregious exploitation in supply chains supplying goods to Australian consumers. A Modern Slavery Act could be enacted in Australia within the year. But opinions differ about whether the imminent law is fit for purpose, with investor groups arguing that, without an accompanying list of reporting entities, its value is limited.
...will require companies to report on modern slavery...apply to all Australian companies, and foreign companies operating in Australia, with an annual consolidated turnover of [AUD]$100 million or more. Reporting entities must publish a statement each year, detailing action taken to address modern slavery. The statements will be held on a public, government-run register where they can be accessed and scrutinised.
The bill does not include financial penalties for companies that fail to report. The intent behind the legislation is for the power of public scrutiny, particularly by investors, to induce companies to comply with the reporting requirement.
...significant refinements to the UK model. It introduces mandatory reporting against specified criteria, an improvement on the UK Act which merely suggests information that companies may disclose. The central register is another plus...
Critically, under current Australian proposals, there won’t be a public list of who must report. Without this information, if companies fail to act, this fact will remain hidden. RIAA’s Nicolette Boele says a list is key to the integrity of Australia’s modern slavery response, enabling investors to engage with companies that fail to report. “Without the roll call, we can’t tell who is missing from class” she says...
A public list of reporting entities must accompany the Modern Slavery Act. Australia’s new anti-slavery transparency regime will then be suitably structured to meet investor needs, effectively challenge the status quo and lead meaningful action against modern slavery at home, and abroad.