The Government has finally unveiled its plan to address modern slavery, promising to introduce legislation that will require some businesses to be transparent about their operations and supply chains through a new public register.
Organisations with revenue of more than $20 million will be required to report and outline actions they are taking to address exploitation risks, Workplace Relations and Safety Minister Carmel Sepuloni announced on Friday.
When the Government went out for consultation on potential legislative options last year, it proposed all organisations be required to take action if they become aware of modern slavery or worker exploitation. Medium and larger organisations would have been required to disclose the steps they are taking, while large organisations would have to undertake due diligence.
But Sepuloni on Friday said the Government was putting a focus on large businesses.
She said this "strikes an appropriate balance, by encouraging those most able to influence their more extensive supply chains, and not overburdening small businesses".
Broader reform, including around due diligence and businesses taking action, "remains a priority", she said.
"I am committed to progressing this work for future decisions," Sepuloni said.
The planned legislation will now be drafted, a process that is expected to take about six months.
Modern slavery can include forced labour, debt bondage, forced marriage, slavery, and human trafficking domestically and internationally.
World Vision says 50 million people are estimated to be trapped in these situations worldwide, many of whom are forced to produce products.
Consultation on the Government's initial proposals ended in June last year but until now there has been little said about its intended direction.
World Vision-commissioned poll results earlier this year found 81 percent of Kiwis supported new legislation requiring businesses to verify there were no signs of modern slavery in their supply chains. Another survey showed many businesses were purchasing products likely made through modern slavery.
In June, then-Workplace Relations and Safety Minister Michael Wood wouldn't commit to having legislation before the House prior to the election.
He's now left the role following his shares scandal, leaving Sepuloni to lead the work.
She said on Friday that the Government's proposed legislation and register would be "among the world's strongest reporting systems for tackling modern slavery".
"During consultation we heard clearly from business that this legislation is crucial. We already know some businesses are ensuring they don't have modern slavery in their supply chains, and this will help level the playing field," she said.
"The changes will mean that conscious Kiwi consumers will have more transparency about the products and services they consume. World Vision estimates Kiwi households inadvertently pay an average of $34 each week to industries whose products are implicated in modern slavery."
Sepuloni said there were commitments in New Zealand's Free Trade Agreements with the United Kingdom and the European Union to take steps to prevent modern slavery in supply chains.
"It's important we continue to bolster New Zealand's transparent and ethical reputation within our export markets and on the global stage. Now, more than ever, is the time to put steps into place to prevent these horrible practices from occurring."
National's workplace relations and safety spokesperson Paul Goldsmith said the Government's placed too much focus on fair pay agreements and made "little progress" elsewhere in the portfolio.
He said National agreed modern slavery "must be urgently addressed" but the party "will have to look at the details of the legislation before making comment on how fit for purpose it is".
Former Air New Zealand chief executive Rob Fyfe led the Government's Modern Slavery Leadership Advisory Group.
He said on Friday that his experience with New Zealand and international groups showed "just how important it is to know your operations and supply chains, and the value you can add to your business and brand through doing good business".
"I admire businesses who are taking the lead in addressing modern slavery and not waiting for legislative change, but we must create a level playing field and ensure that as business leaders, our quest for cost competitiveness does not come at the cost of enabling modern slavery practices within our operations and supply chains."
Equal Employment Opportunities Commissioner Saunoamaali'i Karanina Sumeo said she welcomed the new proposed new legislation and public register.
"In time, we hope the legislation will apply to organisations of all sizes with national and international supply chains in the public and private sectors," she said.
"For now, all entities large and small, should take it upon themselves to undertake the necessary due diligence to uphold fundamental human rights to safer workplaces, fair pay, and a dignified life for Kiwis and migrant workers."
Reacting to the announcement on Friday, World Vision's head of advocacy and justice Rebekah Armstrong said it was pleasing to see the Government's move but there should be a time-bound commitment for the due diligence component.
“Reporting on modern slavery risks is extremely important, but we know that on its own it is not enough to make a real difference for people trapped in slavery. Companies also need to take meaningful action to address the modern slavery risks they identify and uphold the human rights of workers in their supply chains
"Today marks an important milestone for New Zealand and is a first step in fulfilling our responsibility as a good global citizen to address one of the gravest injustices of our time.
"In an election year, it is critical that all political parties agree to progress both reporting and due diligence legislation and we look forward to hearing that commitment from both sides of Parliament."
