Ending Exploitation in Supermarket Supply Chains

Patricia Gibson Excerpts

Thursday 18th October 2018 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I thank the hon. Member for Bristol East (Kerry McCarthy) for securing this important debate, and I am happy to have been called to speak in it.

It is time that we shone a light on the inequality and suffering that exists in the global supermarket chain, which is, as we have repeatedly heard today, nothing short of slavery. Of course, the real issue is that supermarkets have become hugely powerful, as the right hon. Member for South Holland and The Deepings (Mr Hayes) eloquently set out. Workers and small-scale suppliers and farmers across the globe, but perhaps particularly in developing countries where suppliers and workers are much more vulnerable to discriminatory policies, can face great suffering and unfairness due to this power imbalance. As the hon. Members for Bristol East, for Ipswich (Sandy Martin) and for Gateshead (Ian Mearns) reminded us, such exploitation is often closer to home as well, and is perhaps epitomised in our minds by the Morecambe bay tragedy involving the cockle-pickers.

We have heard much today—it was mentioned by my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock)—about Oxfam’s important “Ripe for Change” report, which presents new and alarming evidence of the suffering faced by women and men behind the supermarket barcodes. While it is positive that UK supermarkets help to create jobs in developing countries, that cannot blind us to the outrage of human and labour rights abuses in the supply chains of the foods we eat. My hon. Friend reminded us of that in powerful terms.

Oxfam reminds us of forced labour aboard fishing vessels in south-east Asia, poverty wages on Indian tea plantations, and the hunger faced by workers on South African grape farms, as was well set out by the hon. Member for Bristol East. We see gross global inequality and escalating climate change, which must be increasingly unsustainable.

The fact is that in this global market, supermarkets choose their products from all over the world, moving between countries and suppliers as the seasons change, with all sorts of fruit and vegetables being sold at all times of the year. But cheap food and all-year-round choice come at a price, and that price is that the big retailers exert huge and intense pressure on suppliers to cut costs while at the same time demanding the highest quality.

Prices paid to suppliers continue to be squeezed, as the right hon. Member for South Holland and The Deepings set out, while there is inadequate support for small-scale farmers and workers from Governments in producer countries, and those factors have increased the risk of human and labour rights violations. This manifests itself in such practices as exploitative child labour and unpaid female labour, and if we could see them for ourselves every day as we bought our produce, it would make us feel very uncomfortable. As the hon. Member for Ipswich pointed out, supermarkets must know how their suppliers operate, and if they do not know, they should.

We all want our grocery bills to be as low as possible, but how many consumers are truly aware of the real cost of cheap groceries? All too often, the cost is that those who produce the food on our supermarket shelves are themselves trapped in poverty and face brutal working conditions, with many going hungry. Oxfam has indicated that, sadly, Tesco, Sainsbury’s, Morrisons, Asda, Lidl and Aldi are increasingly squeezing the prices they pay suppliers, with less and less of the price we pay at the till reaching the small-scale farmers and workers who actually produce the food we eat.

Alarmingly, of the supply chains Oxfam looked at, none enabled people to earn enough for even a basic standard of living, and in some cases, including the production of Indian tea and Kenyan green beans, it was less than half of what they needed to get by, as the hon. Member for Bristol East reminded us. Women face routine discrimination, often providing most of the labour for the lowest wages. More than nine out of 10 of the grape workers in South Africa and seafood processors in Thailand surveyed—most of whom were women—said they had not had enough to eat in the previous month, and several Members, including the hon. Member for Bristol East and my hon. Friend the Member for Edinburgh North and Leith, have pointed that out. We have heard from a number of Members about how the cheap food we buy in supermarkets comes at the cost of squeezing prices paid to suppliers, which then creates huge suffering for the women and men who supply this food, trapping them in poverty.

[Kerry McCarthy]

All today’s speeches have been excellent and I thank Members who have attended the debate.

We can draw a comparison with the clothes sector. We reached a point some years ago when people started realising that if we can buy a pair of jeans for £3 in a supermarket, something must be wrong, with somebody somewhere down the line being exploited if that product could be produced so cheaply. Does the hon. Lady agree that we need to do the same with our food and start questioning why it is so cheap?

[Patricia Gibson]

The hon. Lady is absolutely right. The debate around how we change the culture of our cheap clothing and cheap food is about making sure that our consumers are as well informed as they can be when they go out to do their shopping, whether to buy clothes or groceries. When the public see the cost behind the cheap price, many are moved to change how they shop and what they buy.

Across 12 common products including tea, orange juice and bananas, UK supermarkets receive almost 10 times more of the checkout price than the small-scale farmers and workers who produce them. The UK supermarkets’ market share rose from 41% in 1996 to nearly 53% in 2015 and, as the hon. Member for Bristol East demonstrated, this represents a race to the bottom in terms of what is paid to suppliers.

Oxfam and the Sustainable Seafood Alliance Indonesia examined the working conditions in prawn processing plants and exporters in Thailand and Indonesia respectively, which supply some of the world’s biggest supermarkets, including the six UK supermarkets. Workers described forced pregnancy tests, unsafe working conditions, poverty wages, strictly controlled bathroom and water breaks, and verbal abuse.

Supermarkets should lead the way ethically if positive change is to happen in our food supply chains. That is why Oxfam’s new supermarkets scorecard, which rates and ranks the most powerful UK supermarkets on the strength of their public policies and practices to address human rights and social sustainability, should be welcomed. These challenging benchmarks, based on robust and international standards, and widely recognised best practice on transparency, accountability and the treatment of workers, small-scale farmers and women in supply chains, will allow our consumers across the UK to make more informed choices. They will help to effect change in supermarkets’ practices and encourage them to address the suffering in their supply chains. As we have heard, when consumers have more information, that affects how they purchase and what they buy.

[Sandy Martin]

Does the hon. Lady agree that while it is true that supermarkets should, ethically, carry out this due diligence, something in legislation requiring them to do so would be more powerful?

[Patricia Gibson]

Absolutely. In the past, what has worked best is a carrot-and-stick approach. The Government can lay down regulations and insist by law that certain things are done by supermarkets in the supply chain in this country, but the power of the consumer cannot be overestimated. This is a two-pronged approach, therefore, and we need both these approaches.

We need firmer regulation to protect the rights of farmers and workers. We have modern slavery legislation, but it is important that we continue to be committed to challenging all practices that put people at risk of suffering within our supply chains by convening other nations against modern slavery, as the UK has done at the UN for the last two years.

Engagement with the ongoing independent review of the Modern Slavery Act 2015, ensuring the promotion of transparency within global supply chains, and a commitment to the UN guiding principles relating to business and human rights are essential. Supporting the UN binding treaty on business and human rights is required, too, and I will be interested to hear what the Minister has to say today. As the hon. Member for Bristol East said, many who fear a race to the bottom in food standards and who raise concerns about these matters think they will only be exacerbated post Brexit.

We can do more to mitigate and ease the suffering on a global scale in our supermarket supply chains. We should do what we can, and as a matter of urgency. I am sure that today’s debate has raised the profile of this issue, and I hope that consumers will begin to exert pressure of their own in the choices they make, but we need to do more to ensure that supermarkets themselves are confronted with the part they play in this suffering and abuse of workers and small-scale farmers in some of the poorest countries in the world. That is how real change will come, but the UK Government must play their part, and I am keen to hear the Minister’s response as to how her Government will address the very serious issues raised today.