Labor Standards and Modern Slavery Due Diligence

Labor standards and modern slavery due diligence assess and manage labor practices across port operations and supply chains to prevent exploitation and human rights abuses. This may include, among others, supplier due diligence aligned with ILO conventions, screening for forced labor, child labor, and trafficking risks, contractual requirements for ethical labor practices, worker grievance mechanisms accessible to all workers, independent audits of high risk suppliers, and transparency reporting on labor practices.

For DMC ports, labor standards due diligence can protect vulnerable workers and communities, reduce legal and reputational risks, strengthen responsible procurement, support equitable economic development, and align with global ESG expectations.

Modern slavery refers to contemporary forms of slavery, including forced labor, debt bondage, human trafficking, and slavery like exploitation. The ILO, Walk Free and IOM estimate that 50 million people were living in modern slavery globally in 2021 (ILO, Walk Free and IOM, 2022), with maritime and seafood supply chains among the sectors identified as higher risk. The Walk Free Global Slavery Index provides country level prevalence estimates and policy assessments (Walk Free, 2023).

In Thailand, the EU funded ILO Ship to Shore Rights Project (2016 to 2020) documented labor rights issues in the fishing and seafood processing sectors, with specific focus on migrant workers from Cambodia and Myanmar (ILO, 2020). Similar labor risks may be present in port labor supply, contractor services, and shipowner crewing practices, making due diligence important for DMC port operators.

Modern slavery reporting requirements have emerged in multiple jurisdictions. Australia's Modern Slavery Act 2018 requires entities with annual consolidated revenue of at least AUD 100 million to publish annual Modern Slavery Statements documenting risks in operations and supply chains and actions taken to address them. The 2023 statutory review of the Australian Modern Slavery Act considered expansion of reporting requirements and introduction of penalties (Australian Government, 2023). The United Kingdom Modern Slavery Act 2015, the California Transparency in Supply Chains Act, and other jurisdictions have established similar reporting requirements.

Due diligence under ILO conventions and national frameworks typically encompasses, among others, risk mapping across operations and supply chains, contractual requirements for ethical labor practices in supplier agreements, supplier screening and ongoing monitoring, grievance mechanisms accessible to workers and supply chain workers, remediation processes where violations are identified, and public reporting on due diligence processes and outcomes.

Worker grievance mechanisms, which support workers in raising concerns about labor conditions, complement supplier due diligence. Effective mechanisms accommodate diverse worker profiles, including migrant workers who may have limited literacy in host country languages, temporary workers who may fear retaliation for raising concerns, and contractor employees who may not have direct relationships with the port authority. IFC Performance Standard 2 on Labor and Working Conditions requires a grievance mechanism for workers and access to one for contracted workers (IFC, 2012).