Forced labour is a complex global challenge often driven by unethical recruitment. In F21, a routine social compliance audit at a Malaysian supplier site identified several indicators of forced labour, including workers paying excessive recruitment fees and security bonds that restricted their freedom of movement. This was subsequently confirmed as the first instance of modern slavery identified in our supply chain.
We chose to use our influence to secure remedy for impacted workers and uplift standards rather than terminate the relationship. Over 18 months, we commissioned three independent audits and held more than 28 meetings with the supplier's leadership to co-develop a remediation plan.
By F23, we verified that approximately $734,000 was returned to 230 migrant workers from Nepal, Bangladesh, and Myanmar to remediate the recruitment fees. A local NGO oversaw the process to ensure workers were interviewed and confirmed receipt of payment. Additionally, the supplier implemented new controls, including a "no fees" recruitment policy and translated grievance procedures.
Following this experience, we launched the Responsible Recruitment Addendum to mandate the "Employer Pays Principle" across our Malaysian and Thai supply chains. We also initiated a pilot program in Nepal to verify labour hire providers at the source, aiming to address the root causes of debt bondage before workers even begin their journey.
