How Modern Slavery is embedded in your supply chain: and why you should care

Labour exploitation and modern slavery remain deeply embedded in the supply chains that support the design, building, and construction industries

Modern slavery isn’t always visible, but it remains a widespread risk in almost every supply chain.

Since the introduction of the Commonwealth Modern Slavery Act 2018, awareness has grown, but awareness alone isn’t going to end modern slavery.

Tackling the complex issues around modern slavery requires more than compliance—it needs meaningful action.

Even small businesses, while not legally required to report under the Act, are being called upon by clients, specifiers, government, certification schemes to show leadership and accountability.

This isn’t just a regulatory expectation—it’s an opportunity to build trust, protect vulnerable people, and contribute to lasting change.

Understanding the risks is a critical step in building ethical, human-centered supply chains.

In this article, I’m going to show you what modern slavery and labour exploitation look like, how to identify the signs, and why addressing both in your supply chain is crucial—especially in industries like design, construction, and manufacturing. 

What is Modern Slavery?

Modern slavery occurs when a person’s freedom is taken away.

Their freedom to control their body, their freedom to refuse certain work, or their freedom to stop working.

This is often carried out through threats, violence, coercion, abuse of power, or deception.

When we think about slavery, we’re often imagining someone in chains, but modern slavery is more complex than that.

And it’s often hidden in plain sight. Every day people are tricked or forced into modern slavery situations they cannot refuse or escape.

There are eight forms of modern slavery. They are:

  1. Trafficking: Harbouring or moving a victim for the purpose of exploitation.

  2. Slavery: Exercising power or ownership over a victim, including treating them like a commodity.

  3. Servitude: Significantly restricting a victim’s freedom, such as in domestic work.

  4. Forced Labour: Compelling a victim to work against their will.

  5. Forced Marriage: Coercing, threatening, or deceiving someone into marriage.

  6. Bonded Labour: Lending money to a victim who cannot repay, forcing them to work under conditions they cannot control to pay off the debt. This is the most widespread form of slavery globally.

  7. Deceptive Recruiting: Misleading a victim about their job or employment conditions.

  8. The Worst Forms of Child Labour: Work likely to harm the health, safety, or morals of a child. This includes hazardous work such as operating dangerous machinery, handling toxic substances, carrying heavy loads, or working in extreme conditions. It can also involve excessive hours or night shifts that prevent children from attending school.

What is Labour Exploitation?

While labour exploitation isn’t classified as modern slavery, it often paves the way for more serious abuses.

Labour exploitation involves the unfair treatment of workers, where their rights, dignity, and well-being are compromised for the benefit of others. It takes many forms, including unsafe working conditions, inadequate pay, wage theft, and excessive working hours.

Common examples of labour exploitation include things like:

Wage Exploitation

  • Unpaid wages or wage theft (e.g., being paid for 30 hours while working 40 hours).

  • Being paid below the minimum wage.

Denial of Employment Entitlements

  • Lack of paid leave (e.g., annual, sick, or maternity leave).

  • No access to benefits like superannuation entitlements.

Excessive Work Hours and Overwork

  • Mandatory overtime without pay.

  • No rest periods or meal breaks.

Discrimination and Harassment

  • Gender-based discrimination: Female workers being paid less than male counterparts.

  • Racial or ethnic discrimination: Migrant workers assigned the most dangerous tasks, while local workers are given safer, higher-paying roles.

  • Other examples include verbal abuse, bullying, or sexual harassment by supervisors or colleagues.

Unsafe Working Conditions

  • Lack of protective equipment (PPE).

  • Hazardous environments (e.g., poor ventilation, exposure to harmful chemicals).

  • Absence of safety measures, leading to overwork and fatigue-related risks.

What does a world without modern slavery look like?

A world without modern slavery and labour exploitation is one where workers throughout the world are able to:

  • Choose or refuse the type of work they do.

  • Join a trade union and bargain collectively.

  • Work in a safe and hygienic environment.

  • Be provided with appropriate safety gear.

  • Be paid at least the minimum wage.

  • Be protected against bullying, harassment, and discrimination.

And the good news, is that your business has the power to be a part of the solution.

It starts with understanding where modern slavery is occurring in your supply chain.

 

How to know if your supply chain or industry are high-risk for modern slavery

To effectively address modern slavery, it is essential to understand which products,  materials and industries are high-risk, the worker types most vulnerable (e.g., migrant workers), and high-risk regions or countries. Some examples of high-risk products include furniture, bricks, textiles, rugs, timber, and stone.

A great starting point is the Global Slavery Index, which provides national estimates of modern slavery for 160 countries.

Labour exploitation is often overshadowed by the more extreme cases of modern slavery, yet it remains a critical issue. One that can quietly take root in industries like building, construction and manufacturing.

Ignoring labour exploitation isn’t just an oversight; it’s a missed opportunity to intervene before conditions escalate into modern slavery.

The International Labour Organization (ILO) offers an extensive range of free resources on forced labour and labour exploitation.

The ILO has also published an excellent guide on the indicators of forced labour to help identify how and where it occurs.

 

What your business should be doing to help end modern slavery

In Australia, the Commonwealth Modern Slavery Act 2018 established a reporting requirement for entities with an annual consolidated revenue of more than $100 million.

These entities are obligated to report on their actions to assess and address modern slavery risk in their supply chains and submit an annual Modern Slavery Statement to the Attorney-General's Department (AGD).

The problem is that reporting alone rarely creates a meaningful impact for the people most affected by modern slavery.

And your business doesn’t have to have a revenue of more than $100 million for you to join the movement to end modern slavery.

What the world needs, is for all businesses to accept the challenge of taking meaningful action.

To do this well, we need to engage with the 5 Principles of Meaningful Action:

  • Connection: Recognising that the choices we make are linked to the lives of workers around the world.

  • Curiosity: Asking deeper questions about where our products come from, who makes them, and under what conditions.

  • Commitment: Choosing to move beyond surface-level actions by prioritising, continuous improvement and long-term impact.

  • Courage: Willingness to confront uncomfortable truths and take action in the face of complexity.

  • Collaboration: Working together across sectors and supply chains to raise standards and create shared solutions.

By taking a values-driven, curious, and collaborative approach, we can shift from reactive compliance to proactive impact—where people, not just products, are placed at the heart of our business decisions. 

By being informed, curious, and proactive, we can create better conditions for the workers who are all too often overlooked. Together, we can make a difference.