3.5 people for every 1,000 engaged in forced labour according to a recent ILO study. The illegal profits from forced labour have increased by 37% in the last 10 years despite numerous regulations in place. Read here to learn more.
A study by the International Labour Organization (ILO) โProfits and poverty: The economics of Forced labourโ released in Geneva has found that forced labour generates illegal profits worth $36 billion per year.
This is an increase of 37% of such illegal profits since 2014 and the study said this is fuelled by both a growth in the number of people forced into labour, as well as higher profits generated from the exploitation of victims.
For the study, surveys have been conducted among workers, including Indian workers in Saudi Arabia and Qatar.
What is Forced labour?
As per ILOโs Forced Labour Convention, 1930, it is defined as:
All work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.
Forced labour, also known as involuntary labour or compulsory labour, is a situation in which individuals are coerced to work against their will, under threat of penalty, violence, or other forms of punishment.
- This coercion can come in many forms, including physical violence, psychological manipulation, debt bondage, retention of identity papers, and threats of denunciation to immigration authorities.
- It is a violation of human rights and is considered a form of modern slavery.
- The conditions under which involuntary labour occurs can vary widely, from highly visible public projects to hidden operations in private homes or businesses.
- It is found in many sectors of the economy, including agriculture, mining, construction, manufacturing, and domestic work.
- Involuntary labour is not limited to any specific country or region; it is a global issue, affecting millions of men, women, and children around the world.
Several characteristics distinguish forced labour from other negative labour practices:
- Coercion: Workers are not free to leave due to threats, violence, coercion, abuse of power, or deception.
- Ownership and Control: Employers treat workers as property they can use at will, often restricting their movements or communication.
- Exploitation: Workers receive little or no remuneration for their work in proportion to their effort and the value of their output.
- Deprivation of Liberty: Workers are often kept in conditions of servitude, with their freedom of movement restricted.
Categories of forced labour
For statistical purposes, involuntary labour can be divided into two broad categories – state-imposed and privately-imposed forced labour.
Privately-imposed forced labour
It refers to involuntary labour in the private economy imposed by private individuals, groups, or companies in any branch of economic activity.
- It may include activities such as begging for a third party that go beyond the scope of the production of goods and services covered in the general production boundary of the System of National Accounts.
- For measurement, privately imposed forced labour is commonly divided into two sub-types, both of which are considered in the estimates of illegal profits:
- Forced labour exploitation (FLE): refers to forced labour in the private economy imposed by private individuals, groups, or companies in any branch of economic activity except commercial sexual exploitation;
- Forced commercial sexual exploitation (FCSE): refers to forced labour imposed by private agents for commercial sexual exploitation.
Stateโimposed forced labour
- It refers to forms of involuntary labour that are imposed by state authorities, agents acting on behalf of state authorities, and organizations with authority similar to the state, regardless of the branch of economic activity in which it takes place.
- This category of forced labour is beyond the scope of the current study
Factors behind forces of labour
Supply-side:
- Poverty
- Identity and discrimination due to race, gender, etc.
- Limited labour protection for unorganized workers
Demand side:
- Outsourcing distributes the responsibility for labour standards and makes oversight and accountability difficult.
- Corporate dominance reduces worker wages by concentrating power and value.
Key findings of the study โthe economics of forced labourโ
Most forced labour occurs in the private economy:
- Nearly nine out of every 10 (86 per cent) instances of involuntary labour are imposed by private actors โ 63 per cent in involuntary labour exploitation and 23 per cent in forced commercial sexual exploitation.
No region of the world is spared from forced labour:
- Asia and the Pacific is host to more than half of the global total (15.1 million), followed by Europe and Central Asia (4.1 million), Africa (3.8 million), the Americas (3.6 million), and the Arab States (0.9 million).
Gender is a key determining factor:
- Nearly four out of every five (78 per cent) people trapped in these situations are girls or women. Children account for one in four (27 per cent) of the total cases.
- People in involuntary labour are subjected to multiple forms of coercion to compel them to work against their will.
- The systematic and deliberate withholding of wages is the most common (36 per cent) form of coercion, used by abusive employers to compel workers to stay in a job out of fear of losing accrued earnings.
The study highlights the huge illegal profits accruing from involuntary labour:
- The underpayment of the workers concerned results in over $236 billion in profits for their exploiters.
- Evidence from international migrants suggests that substantial additional profits are generated through the unlawful recruitment practices that forced labour victims are often faced with.
- Urgent investment is needed in enforcement measures that stem the profits from forced labour and bring perpetrators to justice.
International conventions
International organizations, including the International Labour Organization (ILO) and the United Nations, work to combat involuntary labour by setting international legal standards, conducting research and advocacy, and providing assistance to governments in developing policies and programs to eliminate forced labour.
- The ILO’s Convention No. 29 (Forced Labour Convention, 1930) and Convention No. 105 (Abolition of Forced Labour Convention, 1957) are key international treaties aimed at eradicating forced labour.
Underpayment of wages
- The Protection of Wages Convention, 1949 (No. 95) sets out that wages shall be paid in legal.
- The Minimum Wage Fixing Convention, 1970 (No. 131) requires ratifying states to establish a system of minimum wages.
- The Domestic Workers Convention, 2011 (No. 189) provides that domestic workers worldwide who take care of families and households must have access to the same basic labour rights as other workers tender at regular intervals.
Conclusion
Despite these efforts, involuntary labour persists, driven by factors such as poverty, lack of education, economic instability, discrimination, and conflicts.
Combating involuntary labour requires a multifaceted approach, including strengthening legal frameworks, improving law enforcement, supporting victims, raising awareness, and addressing the root socioeconomic causes.
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-Article by Swathi Satish
Informative content and best thing is that it is very precise.