Addressing labour exploitation in global supply chains

On this page

• Forced labour
• Labour exploitation in supply chains
  • Labour exploitation in global supply chains: What we heard report
• Government of Canada initiatives
  • Trade agreements
  • Import prohibition on goods made using forced labour
  • Responsible business conduct
  • Fighting Against Forced Labour and Child Labour in Supply Chains Act
  • National Strategy to Combat Human Trafficking
  • Code of conduct for Procurement (Code)
• Further resources

Forced labour

The International Labour Organization (ILO) estimates that about 27.6 million people around the world are subject to forced labour. The ILO has outlined 11 indicators to assist in identifying forced labour situations or practices, including the existence of forced labour in supply chains. These are:

• abuse of vulnerability
• deception
• restriction of movement
• isolation
• physical and sexual violence
• intimidation and threats
• retention of identity documents
• withholding of wages
• debt bondage
• abusive working and living conditions
• excessive overtime

To read more about forced labour and the above-mentioned indicators you can consult the following ILO webpages:

• What is forced labour?
• Hard to see, harder to count: Handbook of forced labour prevalence surveys - Third edition | International Labour Organization (ilo.org)

Labour exploitation in supply chains

Budget 2024 reiterated the federal government's commitment to introduce supply chain legislation in 2024. The Budget also confirmed the government's intention to strengthen the import prohibition on goods produced using forced labour.

Labour exploitation in global supply chains: What we heard report

Between May and July 2019, the Government of Canada held consultations on possible measures to address labour exploitation in global supply chains. During this consultation we:

• sought the views of a wide range of stakeholders, including national Indigenous organizations
• held in-person roundtable discussions in Ottawa, Toronto and Vancouver with more than 55 stakeholders
• received over 120 online survey responses

Stakeholders included:

• civil society organizations
• employer organizations
• industry organizations
• businesses
• international organizations
• labour organizations
• law firms
• academics
• members of the public

Stakeholders agreed that labour exploitation, including forced labour, through global supply chains is not acceptable and that the Government of Canada should take further action to address it, including through legislation. However, views differed on the scope and form of potential legislation.

Overall, participants agreed that the goal of any legislation should be to:

• increase business knowledge of labour exploitation risks in Canadian supply chains,
• drive a business race to the top to improve workplace standards and practices
• be seen as one piece of a broader approach to addressing labour exploitation in supply chains

The Labour Program published the Labour exploitation in global supply chains: What we heard report on March 11, 2022.

Interested parties were invited to review the report and share any further feedback on key elements of supply chain legislation (such as, scope of potential legislation, type of requirements for businesses, etc.)

Submissions were received from a range of organizations and individuals. This input, as well as other forms of stakeholder feedback obtained through a range of initiatives that federal departments are undertaking to address exploitation in supply chains, is considered as the government advances efforts to tackle forced and child labour. This includes feedback from an October 2023 technical stakeholder engagement session that was held to inform the development of government-led due diligence supply chain legislation and means of strengthening the import prohibition on goods produced using forced labour.

Government of Canada initiatives

Forced labour is a complex global problem that requires collaboration between governments, industry and civil society. The following provides an overview of some of the key activities being undertaken across federal departments to address exploitation in Canada's global supply chains:

Trade agreements

Canada negotiates comprehensive and enforceable labour provisions in its free trade agreements that:

• commit trade partners to uphold international standards, including the elimination of forced labour and the effective abolition of child labour
• require trade partners to effectively enforce their labour laws

To assist developing partner countries in meeting their obligations under these trade agreements, the Government of Canada provides capacity-building and technical assistance. To learn more about labour provisions in free trade agreements, visit Negotiating and implementing international trade-related labour agreements.

Import prohibition on goods made using forced labour

Canada prohibits the importation of goods that are mined, manufactured or produced wholly or in part by forced labour.

The Canada Border Services Agency (CBSA) is responsible for enforcing Canada's prohibition on the importation of goods produced using forced labour. Employment and Social Development Canada (ESDC-Labour) conducts research and analysis on forced labour in other countries, including analysis of specific complaints or issues CBSA may share with ESDC-Labour. CBSA uses research and analysis from ESDC-Labour and other sources to identify goods that have been produced using forced labour and to inform enforcement considerations.

Establishing that goods have been produced by forced labour requires significant research and analysis and supporting information. The risk analysis to establish the likelihood that a specific shipment contains goods produced using forced labour is made on a case-by-case basis, based on available information and analysis.

Enforcement of the import prohibition may be informed by complaints and information received. Persons seeking to report potential non-compliance regarding the importation of prohibited goods, including goods produced by forced or prison labour may contact the CBSA's Border Watch Tip Line (1-888-502-9060) or by making a tip submission online.

Responsible business conduct

The Government of Canada expects Canadian companies operating abroad to:

• abide by all relevant laws
• respect human rights in their operations
• adopt best practices and internationally respected guidelines on responsible business conduct, such as:
  • the United Nations Guiding Principles on Business and Human Rights (PDF, 1,1 KB)
  • the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct

Canada's Responsible Business Conduct Strategy sets out priorities for the Government of Canada to support Canadian businesses active abroad to:

• integrate leading responsible business practices into their operations, including throughout their supply chains, and
• help them mitigate risks

The Strategy strengthens Canada's balanced approach to Responsible Business Conduct (RBC), which includes:

• preventative measures
• legislation in select areas, and
• access to dispute resolution

To learn more, visit Global Affairs Canada's website on Responsible business conduct abroad.

Fighting Against Forced Labour and Child Labour in Supply Chains Act

The Fighting Against Forced Labour and Child Labour in Supply Chains Act came into force on January 1, 2024. Certain entities and government institutions now have to report to the Minister of Public Safety by May 31 of each year on the steps taken to address forced labour and child labour in their supply chains. The Act aims to increase industry awareness and transparency, and drive businesses to improve practices.

To learn more on the reporting obligations and requirements, please visit Public Safety Canada's website Forced Labour in Canadian Supply Chains.

National Strategy to Combat Human Trafficking

The National Strategy to Combat Human Trafficking (National Strategy) brings together federal efforts to address human trafficking at home and abroad under one strategic plan. It is designed to strengthen Canada's response to human trafficking, addressing both sexual exploitation and forced labour, including efforts to prevent forced labour in federal procurement supply chains. Canada also supports the Canadian Centre to End Human Trafficking's multilingual, 24/7 toll-free Canadian Human Trafficking Hotline that refers victims to local law enforcement, shelters and a range of other supports and services. Learn more about the National Strategy, including ways to identify the signs of human trafficking and how to report suspected incidents, by visiting Public Safety Canada’s website Actions to Combat Human Trafficking.

Code of conduct for Procurement (Code)

From January 13 to February 19, 2021, Public Services and Procurement Canada (PSPC) engaged in a consultation process seeking input from the vendor community, non-governmental organizations, experts, and other government departments to share their views on proposed updates to the Code of Conduct for Procurement. The Code outlines expectations and obligations for:

• suppliers who respond to bid solicitations
• those that offer goods and services to the Government of Canada

Recent updates to the Code include human and labour rights expectations for suppliers, as well as new content on:

• environmental protection
• discriminatory practices
• protection of the rights of Indigenous peoples

The Code is mandatory for all Government of Canada procurements as of April 1, 2023, as outlined in the Treasury Board of Canada Secretariat's policy notice issued on March 27, 2023 to amend the Directive on the Management of Procurement. To learn more, visit Public Services and Procurement Canada's website Code of Conduct for Procurement.

Further resources

Combating forced labour: A handbook for employers and business (International Labour Organization)

Due diligence toolkit for fair recruitment (International Labour Organization)

ILO indicators of Forced Labour (International Labour Organization)

ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (International Labour Organization)

OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (Organization for Economic Co-operation and Development)

Guiding Principles on Business and Human Rights (PDF, 1,1 KB) (United Nations)

Contact us

Anyone wanting to share open-source information on forced labour practices or other information of relevance can send an email to EDSC.AIIT.TravailForce-ForcedLabour.IILA.ESDC@labour-travail.gc.ca.