Canada's Disclosure Laws Not Effective in Preventing Forced Labor, Study Says
The Fighting Against Forced Labour and Child Labour in Supply Chains Act in Canada does not require large Canadian companies to take action or reduce the risk of forced labor in their supply chains, a new analysis from McMaster University said. The study, released Aug. 2, said the act does not hold companies accountable when forced labor is found. The report, conducted with the Governing Forced Labour in Supply Chains Project, focused on the Canadian company Lululemon Athletica.
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Lululemon does not own or operate any of the manufacturing or raw materials facilities used in its supply chain. The company sources its manufacturing from Bangladesh, Colombia, the Philippines and Turkey, four out of the 10 worst countries for workers' rights violations, according to the 2021 Global Rights Index, the report said.
The disclosure law will not require Lululemon to "reveal the type of information needed to ensure its suppliers are not abusing workers," the report said. The new law also does not require large multinational companies to take steps to eliminate forced labor in their supply chains, it said. "Our study suggests disclosure laws are a form of window dressing that can be used by companies to project an image of social responsibility to consumers, rather than genuinely improving the working conditions for supply chain workers."
"The new law falls short of what is required to make large corporations exercise due diligence to prevent labour abuse from occurring within their supply chains," the news release for the report said. "If Canada is to truly eradicate force[d] labour in global supply chains, it needs mandatory due diligence legislation that involves supply chain workers at every stage of the process."
Lululemon did not respond to our request for comment.