Labour rights

There is a high risk of employees’ rights being abused in global supply chains. Guaranteeing good working conditions is a substantial and important part of companies’ responsibilities in terms of respecting human rights.

Major challenges

Fundamental workers’ rights are defined in the ILO’s eight core conventions. These apply throughout all supply chains and constitute a minimum standard for working conditions all around the world. But in many places, the conventions are far from respected. There are major deficiencies in working conditions in several of the countries where Swedish companies have a strong presence. Union rights and those who fight for them are particularly under threat. According to the ILO, the UN’s agency dealing with labour issues, there are more migrant workers in the world now than ever before. Many of them are exploited in various forms of modern slavery.

Requirements and control

An increasing number of companies are focusing on improving working conditions by imposing requirements on suppliers in the form of contracts and codes of conduct. But just as important in order to find out whether regulations are being followed is monitoring and control. Companies’ responsibilities also extend beyond suppliers in the first chain – subcontractors also need to be checked. It is often here that the risk of abuses is greatest.

Stay and impose requirements

Leaving a country or a supplier with poor working conditions rarely has a positive impact on the workers’ situation. In most cases, the more responsible course of action is to stay and impose requirements. But then these requirements have to be monitored and any problems addressed. It can take time and require a long-standing relationship with suppliers. If there is no improvement, then the company may be forced to discontinue the relationship with the supplier. But first the company needs to analyse the effects this might have and devise a plan so as not to aggravate the situation.