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Written by Liz McDermott |
The Canada Modern Slavery Act is groundbreaking legislation that aims to combat modern slavery and child labour by placing reporting requirements on companies operating in Canada. The act came into effect in May 2024 and affected corporate social responsibility in Canada by requiring employers to implement a modern slavery policy that addresses labour exploitation prevention.
Canadian companies must understand and meet training standards to ensure compliance and contribute to the fight against exploitation. In this article, we’ll cover modern-day slavery and child labour in Canada and how to develop a training program aligned with the Canada Modern Slavery Act 2023, including the act's training requirements, effective training implementation, and reporting strategies.
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This article is brought to you by Vubiz’s Complying with Canada's Modern Slavery Law online training course which is used by businesses needing to meet compliance requirements. Request a demo to learn more. |
History of Modern-Day Slavery and Child Labour in Canada
Although Canada has a reputation for upholding human rights, modern-day slavery and child labour still exist within its borders, often linked to global supply chains or vulnerable populations, such as migrant workers. Modern slavery includes forced labour, human trafficking, and exploitative working conditions. In contrast, child labour refers to situations where children are forced to work under conditions harmful to their well-being or development.
Colonial History and Indigenous Peoples
In Canada’s early history, Indigenous peoples were subjected to slavery-like conditions through forced assimilation programs, such as the residential school system (1870s–1990s). Indigenous children were removed from their families and made to work in often abusive environments under the guise of education and religious instruction.
Global Supply Chains
Modern-day slavery in Canada is often tied to international trade. Many Canadian companies rely on global supply chains where forced labour, human trafficking, and child labour are rampant, particularly in sectors such as textiles, mining, and agriculture. Workers, especially in developing countries, face poor working conditions, low wages, and even forced labour to produce goods imported by Canadian companies.
Key Examples of Modern-Day Slavery and Child Labour
Fast-Fashion and Garment Industry
Some Canadian companies, like Loblaw (owner of Joe Fresh), were linked to modern slavery following the 2013 collapse of the Rana Plaza garment factory in Bangladesh. The factory’s conditions were deemed unsafe, and its collapse killed over 1,100 people, exposing the harsh conditions faced by garment workers, many of whom were forced into labour under exploitative terms.
Mining Industry
Canadian mining companies have been implicated in forced labour cases abroad. For instance, the use of child and forced labour has been documented in cobalt mining in the Democratic Republic of Congo (DRC). Canadian companies like Barrick Gold have also faced accusations of human rights abuses, including poor working conditions and exploitation in their overseas operations.
Agricultural Sector
In Canada’s agricultural sector, reports of migrant workers (often from Mexico, Jamaica, and Guatemala) working under exploitative conditions, facing unsafe work environments, low pay, and coercion have surfaced. Migrant workers in programs such as the Seasonal Agricultural Worker Program (SAWP) have been vulnerable to modern-day slavery due to their dependence on employers for housing, visas, and wages. This creates a power imbalance where workers face barriers to leaving exploitative conditions.
Human Trafficking in Canada
Canada has also been a destination and transit country for human trafficking, which includes forced labour and sexual exploitation. According to reports, many trafficking victims in Canada are women and girls, especially from vulnerable groups such as Indigenous communities. Operation Northern Spotlight, a law enforcement initiative, has highlighted that Indigenous women and girls are disproportionately represented among the victims of sex trafficking.
Key Companies Linked to Modern-Day Slavery and Child Labour
Loblaw (Joe Fresh Brand)
Loblaw was linked to the 2013 Rana Plaza collapse in Bangladesh, where over 1,100 garment workers died in unsafe working conditions. This event brought attention to the widespread use of forced labour and exploitative practices in global fashion supply chains.
Barrick Gold
Accused of human rights violations, including forced and child labour, in mines located in developing countries such as Tanzania and Papua New Guinea. Workers in these mines reportedly face dangerous working conditions, with little pay and no way to escape.
Canadian Mining Companies in Latin America and Africa
Hudbay Minerals has faced allegations of human rights violations related to forced evictions and violence against local communities in Guatemala. Other companies operating in regions like Africa have been implicated in forced and child labour within the supply chains for metals like cobalt, often used in electronics.
Supply Chains in Cobalt and Technology
Companies importing electronics containing cobalt from the Democratic Republic of Congo, where child and forced labour are widespread, have been under scrutiny. Although the companies may not directly employ forced labour, their reliance on international supply chains that use it makes them complicit.
Understanding The Impact of The Modern Slavery Act on Businesses
In response to growing concerns about modern slavery and forced labour, Canada passed the Fighting Against Forced Labour and Child Labour in Supply Chains Act in 2023 (Bill S-211), commonly referred to as the Modern Slavery Act (MSA). This legislation mandates Canadian businesses and institutions to report on measures taken to prevent forced and child labour in their supply chains, increasing transparency and accountability for companies linked to exploitative practices.
Let’s learn more about the act's key aspects, including the scope of employee training and the reporting obligations businesses must fulfill.
Key Aspects of the Act
The Canada Modern Slavery Act 2023 significantly impacts businesses operating in Canada, as both companies and government institutions are involved in producing, purchasing, importing, or distributing goods. The legislation requires these entities to disclose their steps to prevent and reduce the risk of forced or child labour in their operations and supply chains. Covered entities include businesses that are listed on a Canadian stock exchange, have a place of business in Canada, or are conducting business in Canada and meet at least two of the three following thresholds for one of the last two fiscal years: (1) $20 million in assets, (2) $40 million in revenue, or (3) 250 employees.
Scope of Mandatory Training
Employers must invest in compliance training programs to meet the act's requirements. These programs should equip employees, especially senior management, business development, contract management, procurement, and supply chain management, with the knowledge and tools to identify risks, respond effectively, and uphold ethical practices. Training needs to help staff recognize signs of exploitation, evaluate hazards beyond their supply chains, and develop strategies to curb modern slavery.
Key Training Requirements and Best Practices
1. Awareness Training
Objective: Ensure all employees, especially those involved in procurement, supply chain management, and compliance, understand the nature of modern slavery and child labour.
Content: Training should cover the definitions of modern slavery and child labour, how they manifest in supply chains, and the specific risks associated with the business’s industry and regions of operation.
Target Audience: Employees involved in global sourcing, supplier relations, and those working in high-risk sectors (e.g., manufacturing, agriculture, construction).
2. Risk Identification and Due Diligence
Objective: Equip employees with the skills to identify, assess, and mitigate risks related to forced labour and child exploitation.
Content: Training on conducting risk assessments, understanding the signs of forced or child labour, and utilizing tools such as audits, questionnaires, and supplier monitoring to assess risk in the supply chain.
Target Audience: Procurement teams, compliance officers, legal teams, and anyone responsible for managing supplier relationships.
3. Reporting Requirements
Objective: Ensure employees understand the company’s legal obligations under the Modern Slavery Act to report on measures to combat forced and child labour.
Content: Training on the reporting process, including what information needs to be collected, how to document efforts to prevent forced and child labour, and how to respond if such practices are identified in the supply chain.
Target Audience: Legal teams, compliance officers, and senior management responsible for submitting annual reports to the government.
4. Supplier Training and Engagement
Objective: Ensure suppliers know the company’s expectations regarding modern slavery and child labour.
Content: Companies should provide or facilitate training for their suppliers on the risks of modern slavery and child labour and the standards and practices they expect suppliers to follow.
Target Audience: Key suppliers, subcontractors, and intermediaries in high-risk sectors or regions.
5. Whistleblower and Reporting Mechanisms
Objective: Train employees on using internal whistleblower and grievance mechanisms to report suspicions or evidence of forced or child labour in the company’s operations or supply chains.
Content: Clear guidelines on confidentially reporting concerns, what constitutes a violation, and the company’s commitment to protecting whistleblowers from retaliation.
Target Audience: All employees, particularly on procurement and supply chain teams.
6. Monitoring and Compliance Training
Objective: Train staff responsible for monitoring and enforcing compliance with the Act.
Content: Techniques for conducting audits, reviewing suppliers’ practices, and using third-party verification systems to monitor compliance.
Target Audience: Internal audit teams, compliance officers, and any external auditors or assessors involved in verifying the company's practices.
Reporting obligations
Under the Canada Modern Slavery Act, corporations are required to publish an annual report detailing the steps taken to prevent and reduce the risk of forced labour or child labour in operations and supply chains. Their board must approve this report and publish it prominently on their website. Additionally, a governing body member with authority to bind your entity must include an attestation confirming that the information in the report has been reviewed and is true, accurate, and complete to the best of their knowledge.
Businesses must also complete a mandatory questionnaire and submit their reports to Public Safety Canada. The latter will make them publicly available in a searchable repository on its website. The deadline for filing these reports was May 31, 2024.
Developing a Comprehensive Training Program
To meet the Canada Modern Slavery Act's training standards, you need to create a well-structured program. This involves assessing your organization's needs, developing tailored content, and choosing effective delivery methods.
Assessing organizational needs
Start by evaluating your company's current knowledge and practices regarding modern slavery and child labour. Identify gaps in understanding, especially among crucial personnel like senior management, procurement teams, and supply chain managers. This assessment helps you focus your training efforts where they're most needed.
Creating tailored content
Develop training materials that address your specific industry and company risks. Your content should cover the basics of the Canada Modern Slavery Act 2023, including reporting obligations and how to spot signs of exploitation. To make the training more engaging and practical, include real-world scenarios relevant to your business operations. Consider incorporating your company's anti-slavery policies and whistleblowing procedures into the course material.
Choosing delivery methods
Select training formats that suit your organization's structure and learning preferences. Options include in-person workshops for strategic senior staff training and online courses for broader employee education.
Remember, effective training isn't just about meeting legal requirements. It's about fostering a culture of ethics and compliance within your organization. By investing in comprehensive training, you're taking a crucial step towards combating modern slavery and child labour in your supply chains.
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Vubiz offers a customizable online course, Complying with Canada's Modern Slavery Law, to help businesses meet compliance. Courses use a mix of interactive media, such as videos, written content, and quizzes, to keep participants engaged. Request a demo today to learn more! |
Implementing Effective Training Strategies
To meet the Canada Modern Slavery Act's training standards, you must implement strategies that ensure your program's effectiveness. Here's how you can make sure your training initiatives have a tangible impact:
Ensuring organization-wide participation
It's crucial to involve everyone in your company in the fight against modern slavery. Aim for full participation. Every employee, from the shop floor to senior management, might encounter signs of exploitation. By training your whole team, you're creating a robust defense against modern slavery in your operations and supply chains.
Tracking completion rates
To gauge the success of your training program, keep a close eye on completion rates. For example, one company achieved a 92% completion rate for their anti-modern slavery training across their organization. Set similar goals for your company and implement monitoring processes to drive higher completion rates. Consider making the training mandatory for new hires as part of the onboarding process and annual refresher courses for existing employees.
Measuring knowledge retention
More than delivering training is required; you must ensure your employees retain the information. Test understanding using quizzes and interactive elements in your training modules. Consider implementing key performance indicators (KPIs) to measure the effectiveness of your training initiatives. These could include assessments of employees' ability to identify red flags or their understanding of reporting procedures.
Focusing on these strategies will better equip you to meet the Canada Modern Slavery Act's training standards and contribute to the fight against exploitation in your supply chains.
Reporting on Training Initiatives
Documenting training details
To meet the Canada Modern Slavery Act's requirements, you must keep thorough records of your training efforts. This includes tracking which employees have received training, the content covered, and the frequency of sessions. It's crucial to document whether the training is mandatory or optional and which groups or levels of employees receive it.
Your annual report should showcase your commitment to combating forced and child labour through training. Include information about the content of your training programs, how they were developed, and any assessment methods used. Consider discussing how many employees will receive the training and whether it covers forced and child labour issues. This transparency helps demonstrate your compliance with the Canada Modern Slavery Act 2023.
Continuous improvement
Adopting a continuous improvement approach is essential for strengthening your response to modern slavery risks. Regularly review and update your training programs based on feedback from internal and external stakeholders. This might involve enhancing risk assessment processes, updating contractual controls, or improving grievance mechanisms. By refining your approach, you meet legal requirements and align with broader human rights principles like the United Nations Guiding Principles on Business and Human Rights.
Conclusion
Although the Modern Slavery Act 2023 does not lay out explicit training requirements, businesses should implement comprehensive training programs covering modern slavery and child labour risks, detection, prevention, and reporting mechanisms to comply with the law and ensure ethical practices throughout their supply chains. Training employees and suppliers is essential to fostering an environment that prevents exploitation and ensures compliance with this critical legislation.
Need training?Consider Vubiz’s Complying with Canada's Modern Slavery Law online course designed to help businesses meet compliance requirements. Courses use a mix of interactive media, such as videos, written content, and quizzes, to keep participants engaged. Request a demo today to learn more! |