Migrant worker rights violations reported across global supply chains and the latest on regulations

More than 650 migrant worker abuse cases reported across global supply chains in 2024, new report shows?

The Business and Human Rights Resource Centre (BHRRC) reported 665 cases of migrant worker abuse globally in 2024, a new report shows, with most cases reported from the agri-food, construction & engineering, and manufacturing sectors.?

Wage theft, recruitment fee-charging, and intimidation were among the top issues reported across cases. Destination countries such as the United States, United Kingdom, Saudi Arabia, South Korea and Australia recorded the highest number of incidents, all of which also showed high risk for migrant worker issues in 2024, according to data on EiQ, LRQA’s supply chain intelligence platform.?

Businesses must improve conditions for foreign migrant workers in their supply chains by prioritising fair recruitment processes in their due diligence strategies, supplier collaboration as well as engagement and risk remediation efforts. This may include implementing grievance mechanisms to ensure worker issues are being heard and remediated, as well as ensuring suppliers are aligned with best practices and fair working conditions.?

Awaiting the outcome of the EU’s proposed ‘omnibus,’ organisations call for ‘legal certainty’??

The European Union’s proposed ‘omnibus’ legislation, which would impact the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD) and EU Taxonomy, is set to be introduced in the coming weeks, according to reports.??

President of the European Commission Ursula von der Leyen announced the proposed omnibus in November with the intent to streamline and simplify sustainability reporting, sustainability due diligence and taxonomy. The exact amendments of the legislation are still unclear, but responses to the omnibus from EU member states, business leaders, investors and activists remain mixed, with some welcoming the simplifications, while others argue delays and revisions will cause confusion and support a deregulation agenda. The Fair Labor Association released a joint statement Tuesday with amfori, Cascale, Ethical Trading Initiative (ETI), and several other organisations calling on the European Commission to ‘provide legal certainty’ and ‘avoid deregulation.’?

Read more about our recommendations for navigating regulatory uncertainty here.?

The de minimis debate?

De minimis is one of the many trade policies at the forefront of conversations amid the second Trump presidency, and proposed changes to the provision are sparking debate around the potential impacts on supply chains, e-commerce, consumers and the like. Amid the arguments in favour of maintaining the exemption to ease procedural burdens and preserve low costs for consumers, where is the argument in favour of product integrity and ethical sourcing??

Read more on the ongoing push and pull between profitability and sustainability and why businesses should prioritise the latter in our latest article here.?

Tariff takeover?

After a week of tariff shakeups and headlines, the global trade landscape is shifting, and businesses are bracing for potential rising costs and supply chain reshuffling. What does this mean for supply chains? While businesses may respond to new levies with strategies such as reshoring, nearshoring and even ‘friendshoring’, organisations must remain vigilant in understanding the risks that come with new sourcing markets.??

New markets may have hidden risks, such as labour exploitation and weak regulatory frameworks, leaving businesses vulnerable to issues with non-compliance or malpractice. By conducting thorough due diligence of potential new supply chain partners, businesses can better manage these risks and make informed decisions that align with their sustainability and ethical standards.?

Curious about how to assess inherent risks of new sourcing markets? Request a free demo of our supply chain intelligence solution EiQ.?

Are you a sustainability professional in the Hong Kong area? Join our Hong Kong Leadership Series?

Join us on the 6th March 2025 to discuss Supply Chain Sustainability Leadership in the Greater Bay Area (GBA) in Hong Kong.???

Connect with industry thought leaders, supply chain professionals and policymakers from across the Greater Bay Area and explore what it means to be a leader at the nexus of supply chain sustainability, risk management and business transformation in 2025. A day full of engaging discussions and unique networking opportunities, you don’t want to miss this event!? ?

Register here: https://www.eiq.com/events/hong-kong-leadership-series-2025/??

We're excited to bring you this newsletter here on LinkedIn. Please subscribe to make sure you don't miss the next edition of EiQ Insights. For queries about our newsletter, contact us at [email protected]?