Products and services made by children in Child Labour, both in the UK and globally, can still be found in the supply chains of UK businesses and government departments. The UK Government doesn't legislate against this.
What does this look like in practice?
HACE analysis shows that 33% of Rubber imported into the UK is from countries with proven Child Labour in Rubber production. This Child Labour is exploitative, harmful and goes against International Labour Organization conventions.
The UK Government is currently not legislating against this. Rubber is one of 151 Goods with proven production using Child Labour, none of which are regulated.
One of the major exporters of rubber into the UK is Indonesia. Child Labour is extensive in Indonesian rubber production. 52% of interviewed children work for private companies, as opposed to subsistence or family farming.
UK companies are currently under no legal obligation to monitor their supply chains for this. The UK Government is falling behind global leaders in this space such as Canada and Switzerland.
"The Modern Slavery Act is an indispensable tool against Forced Labour, including Forced Child Labour, but its narrow definition means it doesn't apply the same level of pressure and scrutiny to the broader spectrum of Child Labour issues," says Eleanor Harry, CEO and Founder of HACE. "This risks companies focusing only on the 'tip of the iceberg' (i.e. Modern Slavery involving children) while equally severe forms of Child Labour persist, potentially remaining hidden and unaddressed."
The repercussions extend to UK government procurement. While the UK government prohibits products made from Forced Labour in public procurement tenders, it effectively allows goods made with other forms of Child Labour to be sourced. This means that essential items such as surgical instruments for the NHS or bricks for DEFRA, both of which have been proven to be produced with Child Labour, can enter public supply chains with little to no regulation.
"This is not only an ethical failing but also a significant reputational and financial risk for companies," states Harry. "Until the Modern Slavery Act is amended to include Child Labour in all its forms, this situation will lead to the reporting of misleading data, both publicly and to shareholders. Consumers have a right to know what they are buying, a principle underlying the Consumer Care Act, and this current loophole undermines that right."
HACE recommends an amendment to the Modern Slavery Act, expanding it into the Modern Slavery and Child Labour Act. This broadened legislation would clearly outline definitions of human rights violations, with vital consultation from subject-matter experts.
HACE believes that comprehensive reform offers numerous benefits for the UK. Beyond the clear moral and ethical imperatives, a 2004 ILO report estimated that the benefits of eradicating Child Labour outweighed the costs by seven times, highlighting the significant economic advantages of addressing this issue. Such reform would also enhance consumer trust in both the UK government and UK companies, offer greater protection during Child Labour scandals and legal cases, and reduce financial, reputational, and legal risks for businesses. While there may be an initial increase in administrative and reporting burdens for businesses, HACE believes that in the long term, this will lead to more efficient global reporting for multinational corporations and a reduction in overall risks.
The UK has a critical opportunity to lead globally, contributing positively to both national and international economies by ensuring its legislation truly reflects the realities of Child Labour and aligns with international best practices.