Ending Exploitation in Supermarket Supply Chains

Deidre Brock Excerpts

Thursday 18th October 2018 Commons Chamber

[Deidre Brock (Edinburgh North and Leith) (SNP)]

I commend the hon. Member for Bristol East (Kerry McCarthy) for tabling this important motion, but is it not sad that, in these supposedly enlightened times, we are still having to discuss the brutal practices of slavery? Forced labour, domestic servitude, people-trafficking—there is nothing modem about this. It is an age-old story of individuals being dehumanised and exploited by fellow human beings.

Workers have hard-fought rights in the United Kingdom, but it is easy for a blind eye to be turned to something nasty that is happening to people further down the line: those whose labour helped to put those shiny products on our supermarket shelves. When profit alone is king, there are always unscrupulous businesses that will callously treat people as commodities. Unless there is credible action to stop it, there will always be brands that will do the shady deals and say, “Nothing to see here,” or, “Nothing to do with me.” We need to shine a light on forced labour and the exploitation of workforces, and hold the companies at the top of the line responsible, too. In that way, we can drive these sickening practices from the supply chain.

I am not just talking about the appalling cases of people trafficked into slavery, such as those we have heard about involving Burmese and Cambodian crews on Thai fishing boats. Millions of workers are forced to labour for almost nothing in appalling conditions that violate their human rights. Oxfam’s excellent research reveals the shocking poverty and human rights abuses that are behind many common products on our supermarket shelves. For example, there are South African women farmers who pick grapes for our wine but cannot even feed themselves and their families. The highest-paid supermarket chief executive will earn more in less than five days than those women do in their entire lifetimes—let that sink in. Where women are the main labourers, the risk of exploitation is even worse.

The Oxfam researchers found that less than 6% of the consumer price was reaching small-scale farmers and growers, with supermarkets capturing over half the value of the products, which is more than in the Netherlands, Germany and the United States. Profits paid in dividends had dramatically risen in the UK since the 1970s. Business models are ever more strongly focused on increasing returns for shareholders instead of looking after the interests of all stakeholders.

The Modern Slavery Act was a much-needed, welcome piece of legislation. I commend the Government for the action that they have taken so far, and the Prime Minister for her own commitment on this issue. Those, I think, are efforts that we can all support.

Some supermarkets have taken steps to identify and deal with issues in their supply chains. I note, for example, the efforts of Marks & Spencer to improve transparency with an interactive supply chain map, including information on trade union membership recognition from its primary suppliers. There are also good news stories, such as the growing success of the Fairtrade market in the UK. More agreements are being reached with the big supermarkets to expand their Fairtrade products, which is fantastic news, but that, unfortunately, makes the news that we have just heard about the decision of Sainsbury’s to pull out of its commitment to Fairtrade even more disappointing.

[Alison Thewliss (Glasgow Central) (SNP)]

Does my hon. Friend welcome the efforts of the Scottish Fair Trade Forum to encourage more suppliers to take on Fairtrade, and to persuade small as well as larger businesses to supply such products in their shops?

[Deidre Brock]

I certainly do. I am well aware of that, having attended Fairtrade coffee mornings in my constituency for the last couple of years. It is great to see people really getting behind the Fairtrade initiative.

Clearly, as the Government recognise, the picture is patchy, and there are many issues relating to how the measures in the Modern Slavery Act are working on the ground. Encouraging transparency and fairness is simply not enough. We know that agriculture, fishing and forestry businesses are amongst the highest-risk offenders in respect of forced labour worldwide, but a year after the Act came into force, only 19% of agriculture companies were doing all that is required to comply with section 54. Even when businesses do comply, it can be seen as little more than a box-ticking exercise—very little effort is made to get to the root of the problem. Companies must be made, not just encouraged, to comply. As all who have suffered at the hand of austerity since 2007 would agree, light-touch regulation is not enough.

The discovery of slavery in supply chains should hit businesses where it hurts most, and highlighting their brands, their profitability and those all-important dividends should be key. We should be shouting from the rooftops the names of those who take a stand, and holding liable all those who do not. We all have a responsibility to ensure that, wherever they come from, workers who help to put food and other products on our shelves earn enough to enjoy a decent, dignified standard of living.