TITLE: As big supermarkets pursue profits, new research shows growing exploitation of shrimp farmers
https://apnews.com/article/shrimp-workers-exploitation-vietnam-indonesia-india-supermarket-d29e3c24a1a20d3815f5418829a6bbe9
EXCERPTS: As big Western supermarkets make windfall profits, their aggressive pursuit of ever-lower wholesale prices is causing misery for people at the bottom end of the supply chain — people like [Indonesian shrimp farmer Yulius] Cahyonugroho who produce and process the seafood, according to an investigation by an alliance of NGOs focused on three of the world’s largest producers of shrimp provided to The Associated Press ahead of its publication on Monday.
The analysis of the industry in Vietnam, Indonesia and India, which provide about half the shrimp in the world’s top four markets, found a 20%-60% drop in earnings from pre-pandemic levels as producers struggle to meet pricing demands by cutting labor costs.
In many places this has meant unpaid and underpaid work through longer hours, wage insecurity as rates fluctuate, and many workers not even making low minimum wages. The report also found hazardous working conditions, particularly in India and parts of Indonesia, and even child labor in some places in India.
“The supermarket procurement practices changed, and the working conditions were affected — directly and rapidly,” said Katrin Nakamura of Sustainability Incubator, who wrote the regional report and whose Hawaii-based nonprofit led the research on the industry in Vietnam. “Those two things go together because they’re tied together through the pricing.”
Supermarkets linked to facilities where exploited labor was reported by workers include Target, Walmart and Costco in the United States, Britain’s Sainsbury’s and Tesco, and Aldi and Co-op in Europe.
Switzerland’s Co-op said it had a “zero tolerance” policy for violations of labor law, and that its producers “receive fair and market-driven prices.”
Germany’s Aldi did not specifically address the issue of pricing, but said it uses independent certification schemes to ensure responsibly sourcing for farmed shrimp products, and would continue to monitor the allegations.
“We are committed to fulfilling our responsibility to respect human rights,” Aldi said.
Sainsbury’s referred to a comment from the British Retail Consortium industry group, which said its members were committed to sourcing products at a “fair, sustainable price” and that the welfare of people and communities in supply chains is fundamental to their purchasing practices.
None of the other retailers named in the report responded to multiple requests for comment on the report, titled “Human Rights for Dinner.”
After food supply chain disruptions during the COVID-19 pandemic, the U.S. Federal Trade Commission reported earlier this year that some grocers have used the situation “as an opportunity to further raise prices to increase their profits, which remain elevated today.”
The demands for lower wholesale shrimp prices — combined with rising production costs and an oversupply — means farmers often must sell their products under cost just to keep operations going, the Sustainability Incubator analysis found.
Higher wholesale prices don’t have to mean higher prices for consumers, Sustainability Incubator said.
“Prices to farmers would be at least 200% higher than today if the shrimp sold in Global North supermarkets was made at minimum wage rates and in compliance with applicable domestic laws for labor, workplace health, and safety,” the report said. “This would not necessarily mean higher consumer prices, because supermarkets are already profiting at existing consumer prices.”
In Indonesia, three non-profit research organizations found that shrimp workers’ wages have declined since the pandemic and now average $160 per month, below Indonesia’s minimum wage in most of the biggest shrimp-producing provinces. Shrimp peelers were found to be routinely required to work at least 12 hours per day to meet minimum targets.
In Vietnam, researchers found that workers who peel, gut and devein shrimp typically work six or seven days a week, often in rooms kept extremely cold to keep the product fresh.
Some 80% of those involved in processing the shrimp are women who rise at 4 a.m. and return home at 6 p.m., with the exception of pregnant women and new mothers who can stop one hour earlier.
Wages are generally not disclosed ahead of time and are based upon production. Sometimes workers make minimum wage, but frequently they do not.
Researchers from the Corporate Accountability Lab found that Indian shrimp industry workers face “dangerous and abusive conditions” and that highly-salinated water from newly-dug hatcheries and ponds, tainted with chemicals and toxic algae, are contaminating surrounding water and soil.
Unpaid labor prevails, including salaries below minimum wage, unpaid overtime, wage deductions for costs of work and “significant” debt bondage, the report found.
Child labor was also identified, with girls aged 14 and 15 being recruited for peeling work.
TITLE: McDonald’s and supermarkets failed to spot slavery
https://www.bbc.com/news/articles/c2kdg84zj4wo
EXCERPTS: Six members of a family-run human trafficking network from the Czech Republic have been convicted in two criminal trials, which were delayed by the Covid pandemic.
Reporting restrictions have prevented coverage of much of the case, but BBC England can now reveal the full scale of the gang’s crimes - and the missed opportunities to stop them.
Nine victims were forced to work at the McDonald’s branch in Caxton, Cambridgeshire. Nine worked at the pitta bread company, with factories in Hoddesdon in Hertfordshire and Tottenham in north London, which made supermarket own-brand products. There were 16 victims in total across both sites, as two worked at both McDonald’s and the factory.
The victims - who were all vulnerable, most having experienced homelessness or addiction - earned at least the legal minimum wage, but nearly all of their pay was stolen by the gang.
While they lived on a few pounds a day in cramped accommodation - including a leaking shed and an unheated caravan - police discovered their work was funding luxury cars, gold jewellery and a property in the Czech Republic for the gang.
On several occasions, victims escaped and fled home only to be tracked down and trafficked back to the UK.
The exploitation ended in October 2019 after victims contacted police in the Czech Republic, who then tipped off their British counterparts.
But warning signs had been missed for at least four years, the BBC has discovered by reviewing legal documents from the gang’s trial and interviewing three victims.
The undetected red flags include:
Victims’ wages were paid into bank accounts in other people’s names. At the McDonald’s, at least four victims’ wages - totalling £215,000 - were being paid into one account, controlled by the gang
Victims were unable to speak English, and job applications were completed by a gang member, who was even able to sit-in on job interviews as a translator
Victims worked extreme hours at the McDonald’s - up to 70 to 100 a week. One victim worked a 30-hour shift. The UN’s International Labour Organization says excessive overtime is an indicator of forced labour
Multiple employees had the same registered address. Nine victims lived in the same terraced home in Enfield in north London while working at the bakery
“It really concerns me that so many red flags were missed, and that maybe the companies didn’t do enough to protect vulnerable workers,” said Dame Sara Thornton, the former independent anti-slavery commissioner, who reviewed the BBC’s findings.
The gang “treated their victims like livestock” feeding them just enough “to keep them going”, according to the Met’s Det Insp Melanie Lillywhite.
She said victims were controlled by “invisible handcuffs” - monitored by CCTV, prevented from using phones or the internet and unable to speak English.
“They really were cut off from the outside world,” she said.
While the gang has been convicted in court, Pavel - who was homeless in the Czech Republic when he was approached by the gang with the false promise of a well-paid job in the UK - believes McDonald’s also shares some responsibility.
“I do feel partially exploited by McDonald’s because they didn’t act,” he said.
“I thought if I was working for McDonalds, that they would be a little bit more cautious, that they will notice it.”
The Modern Slavery Act requires larger companies - including McDonald’s and the supermarkets, but not the factory - to publish annual statements outlining what they will do to tackle the issue.
Former Prime Minister Baroness Theresa May, who introduced the act as home secretary in 2015, accepted the law failed to protect victims in this case, and believes it needs to be “beefed up”.
The former PM - who now leads the Global Commission on Modern Slavery and Human Trafficking - said the case was “frankly shocking” and shows “large companies not properly looking into their supply chains”.
TITLE: Are Supermarkets Perpetuating Modern Slavery in Their Supply Chains?
https://internationalsupermarketnews.com/archives/15749
EXCERPT: Modern slavery is an umbrella term covering forced labour, debt bondage, human trafficking, and other exploitative conditions in which individuals are coerced or tricked into working for little to no pay. According to the International Labour Organization (ILO), over 40 million people worldwide are victims of modern slavery, with many of these individuals working in sectors that supply goods to major retailers.
Key Areas of Exploitation in Supermarket Supply Chains
Agriculture and Food Production The agriculture sector is particularly rife with exploitative labour practices. Many products sold in supermarkets—such as fresh produce, palm oil, cocoa, and coffee—are linked to instances of forced labour. For example, reports have shown that workers on tomato farms in Italy, which supply major European supermarkets, are subjected to poor working conditions and wage exploitation. In developing countries, migrant labourers are often recruited under false promises of fair wages, only to find themselves trapped in debt or forced labour situations.
The Fishing Industry One of the most egregious examples of modern slavery can be found in the global fishing industry, particularly in Southeast Asia. Much of the seafood stocked in supermarket freezers originates from this region, where men and boys are trafficked and forced to work on fishing boats for years without pay, often under the threat of violence. Thai fishing boats, which supply fish to international markets, have been repeatedly implicated in human trafficking and labour abuses.
Factory Labour Factories producing goods for supermarket shelves, particularly in the garment and food processing industries, are often hotspots for labour exploitation. In countries like Bangladesh, India, and Guatemala, workers in sweatshops or processing plants face gruelling hours, unsafe working conditions, and inadequate pay. Many of these factories are part of a larger supply chain, making it difficult for supermarkets to monitor the ethical practices of their suppliers.
Supply Chain Transparency and Accountability
The global nature of supermarket supply chains presents a significant challenge to eradicating modern slavery. Retailers often source products from multiple suppliers, each of whom may subcontract work to other companies. This creates layers of complexity that make it difficult to trace the origin of goods and ensure compliance with labour standards. Even when supermarkets commit to ethical sourcing, the use of third-party contractors and middlemen can obscure the true conditions under which products are produced.