Bill S-211

Fighting Against Forced Labour and Child Labour in Supply Chains Act

An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff

This enactment enacts the Fighting Against Forced Labour and Child Labour in Supply Chains Act , which imposes an obligation on certain government institutions and private-sector entities to report on the measures taken to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains. The Act provides for an inspection regime applicable to entities and gives the Minister the power to require an entity to provide certain information.
This enactment also amends the Customs Tariff to allow for aprohibition on the importation of goods manufactured or produced,in whole or in part, by forced labour or child labour as those terms are defined in the Fighting Against Forced Labour and Child Labour in Supply Chains Act .

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Thank you, Mr. Chair.

I'm very happy to be here today.

This is a very important issue that deserves our full attention. I want to thank the witnesses for being with us and shedding light on the matter.

I want to come back to Bill S-211. According to some critics, the bill doesn't go far enough to address forced labour. We can all agree that Canada is a laggard in this area.

Nevertheless, doesn't the bill have some merit, since it will force companies to show some transparency and report information?

I would like to hear from Ms. Dufour and Ms. Murphy on that.

[Stéphane Bergeron, Bloc, Montarville, QC]

Thank you, Mr. Chair.

Thank you to the witnesses for their insights, which are giving us a lot to think about.

Professor Dufour, as I listen to you, I get the sense that Canada is light years behind those who are leading the way. As you no doubt know, Bill S‑211 is at committee stage, and is close to being passed. Yesterday, those of us on the Standing Committee on Foreign Affairs and International Development met for clause-by-clause consideration of the bill.

In our public meetings, we heard from a number of witnesses that the bill didn't go far enough because all it did was require companies to report practices that could involve the use of forced labour, nothing more. It's clear from the efforts being made around the world that, basically, all we are doing if we pass the bill is making ourselves feel better.

What do you think?

[Heather McPherson, NDP, Edmonton Strathcona, AB]

I'd like a recorded vote on that.

(Bill S-211 agreed to: yeas 9, nays 2)

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Yes. This one is very short, so I think I can get through it. As well, I strongly hope that some of my colleagues will be voting with me on this amendment.

This is an amendment that came by SHARE, the Shareholder Association for Research & Education. It would amend Bill S-211 by adding after line 34 on page 10 the following new clause:

21.1 If an offence under this Act is committed or continued on more than one day, it constitutes a separate offence for each day on which it is committed or continued.

Bill S-211's current fines for non-compliance, of $250,000, are not likely to be sufficient in ensuring compliance, particularly among large corporations. Therefore, this amendment ensures that fines will be made on a continuing basis, as is the case with the Extractive Sector Transparency Measures Act, a similar piece of reporting legislation.

Thank you.

[The Chair, Liberal, Ali Ehsassi]

Absolutely.

Bill S-211 enacts the fighting against forced labour and child labour in supply chains act, which imposes on certain private sector entities an obligation to report on the measures they take to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains. It allows the minister to order an entity to comply with its reporting obligations, based on information obtained through a search. Amendment NDP-5 seeks to add a mechanism for complaints and investigations regarding the use of forced labour or child labour in an entity's activities or supply chains, which is not envisioned in the bill as adopted by the House at second reading.

Once again, as House of Commons Procedure and Practice, third edition, states specifically on page 770, “An amendment to a bill that was referred to committee after second reading is out of order if it is beyond the scope and principle of the bill.”

Therefore, in my opinion, it is beyond the scope.

[The Chair, Liberal, Ali Ehsassi]

Thank you.

I'd like to rule that Bill S-211 enacts the fighting against forced labour and child labour in supply chains act, which imposes on certain private sector entities an obligation to report on the measures they take to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains. Amendment NDP-3 seeks to require additional information to be included in the report, such as information on risks relating to human rights that the entity has identified and the steps it has taken to give priority to and address those risks, which is not envisioned in the bill as adopted by the House at second reading.

As House of Commons Procedure and Practice, third edition, states on page 770:

An amendment to a bill that was referred to a committee after second reading is out of order if it is beyond the scope and principle of the bill.

Therefore, in my opinion, it is beyond the scope.

[The Chair, Liberal, Ali Ehsassi]

Welcome to meeting number 40 of the Standing Committee on Foreign Affairs and International Development.

Today's meeting is taking place in a hybrid format, pursuant to the House order of June 23, 2022. Members are attending in person in the room and remotely using the Zoom application.

I'd like to make a few introductory comments for the benefit of the witnesses and the members.

Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mike. Interpretation for those on Zoom is at the bottom of your screen, and you have a choice of floor, English or French. Those in the room can use the earpiece and select the desired channel. I will remind you that all comments should be addressed through the chair.

Pursuant to the order of reference of Wednesday, June 1, 2022, the committee resumes consideration of Bill S-211, an act to enact the fighting against forced labour and child labour in supply chains act and to amend the Customs Tariff.

It is now my pleasure to welcome the officials who will be supporting this clause-by-clause consideration of Bill S-211.

From the Canada Border Services Agency, we have Janine Harker, the director of commercial and trade policy.

From the Department of Employment and Social Development, we have Rakesh Patry, director general, international and intergovernmental labour affairs; and Bruce Kennedy, deputy director, forced labour division, international and intergovernmental labour affairs.

From the Department of Finance, we have Karen LaHay, senior adviser and economist, international trade policy division.

From the Department of Foreign Affairs, Trade and Development, we have David Hutchison, director general, trade portfolio strategy and coordination.

From the Department of Public Safety and Emergency Preparedness, we have Cinthya Rebaza, director, serious and organized crime policy, who's here with us by video conference.

From the Department of Public Works and Government Services, we have Ricardo Seoane, associate director, strategic policy sector, procurement branch; Levent Ozmutlu, director general, strategic policy sector, procurement branch; and Laura Unitt, acting manager, strategic policy sector, procurement branch.

Thank you, all, for being here to assist the members.

I'd like to provide members of the committee with some instructions and a few comments on how the committee will proceed with the clause-by-clause consideration of Bill S-211.

As the name indicates, this is an examination of all the clauses in the order in which they appear in the bill. I will call each clause successively, and each clause is subject to debate and a vote.

If there are amendments to the clause in question, I will recognize the member proposing the amendment, who may explain it further. The amendment will then be open for debate. When no further members wish to intervene, the amendment will be voted on. Amendments will be considered in the order in which they appear in the bill or in the package each member received from the clerk. Members should note that amendments must be submitted in writing to the clerk of the committee.

I will go slowly to allow all members to follow the proceedings properly. Amendments have been given an alphanumeric number in the top right corner to indicate which party submitted them. There is no need for a seconder to move an amendment. Once an amendment is moved, you will need unanimous consent to withdraw it.

During debate on an amendment, members are permitted to move subamendments. These subamendments must be submitted in writing; they do not require the approval of the mover of the amendment. Only one subamendment may be considered at a time, and that subamendment cannot be amended. When a subamendment to an amendment is moved, it is voted on first. Then another subamendment may be moved, or the committee may consider the main amendment and vote on it.

Finally, once every clause has been voted on, the committee will vote on the title and the bill itself, and an order to reprint the bill may be required if amendments are adopted, so that the House has a proper copy for use at the report stage. The committee will have to order the chair to report the bill to the House. That report contains only the text of any adopted amendments, as well as an indication of any deleted clauses.

Pursuant to Standing Order 75(1), consideration of clause 1 and of the preamble is postponed.

(On clause 2)

I understand we have an amendment by Ms. McPherson.

Forced Labour and Child Labour

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Mr. Speaker, the next petition I am presenting is from Canadians across Canada who are very concerned about the issue of modern slavery. It appears that today, more than 50 million people are caught up and enslaved in modern slavery, and many of the products we buy here in Canada are affected by this form of slavery.

Approximately 20 million people are in forced labour today, and it is estimated that over 1,200 companies operating in Canada are at risk of selling or using products that are produced by child labourers or forced labourers. Approximately 20 billion dollars' worth of goods are imported each year that are at risk of being produced through modern slavery. Large companies at this point are not required to report measures taken to prevent modern slavery in their supply chains. Canada has committed to target 8.7 of the 2030 United Nations goals to eliminate all forms of child slavery by 2025.

The folks who have signed this petition are calling on the House of Commons to quickly pass Bill S-211, an act to fight against forced labour and child labour in supply chains and to amend the Customs Tariff. I note that this bill is at committee right now and is in its final stages. The petitioners are calling for Parliament to quickly pass it.

[Emily Dwyer]

I would repeat that, for us, effective legislation is legislation that requires companies to actually take action and not only report, that helps people to access Canadian courts, and that applies to all human rights. That is represented in Bill C-262 and it is not represented in Bill S-211.

[Stéphane Bergeron, Bloc, Montarville, QC]

Thank you, Mr. Chair.

Rumour has it that the government will introduce amendments to Bill S‑211. Government colleagues have had the opportunity to see these amendments, but opposition members haven't yet had the opportunity.

If, as is rumoured, some of these amendments would strengthen the bill, do you think we should be open to them? Or do you think that, in order to achieve the objectives you are pursuing, we should reject this bill out of hand and come up with something that isn't piecemeal and is more coherent overall?

[Stéphane Bergeron, Bloc, Montarville, QC]

The Minister of Labour's mandate letter instructs him to “introduce legislation to eradicate forced labour from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses”.

The two bills before us, Bill S‑211 and Bill C‑262, are parliamentary initiatives.

Do you expect anything from the government in addition to these parliamentary initiatives?

[Stéphane Bergeron, Bloc, Montarville, QC]

I understand from your remarks that you favour Bill C‑262 over Bill S‑211.

How would passing Bill S‑211 prevent the subsequent passing of Bill C‑262?

[Alice Chipot, Executive Director, Regroupement pour la responsabilité sociale des entreprises]

Good afternoon, everyone.

Members of the Standing Committee on Foreign Affairs and International Development, I'd like to thank you for giving me the opportunity to appear before you today.

My name is Alice Chipot, and I'm the executive director of the Regroupement pour la responsabilité sociale des entreprises, the RRSE.

Our organization is located in Montreal and is comprised of more than 50 committed investors, including religious communities, foundations, non-profit organizations, research centres and individuals. For more than 20 years, we've been working for business practices and corporate behaviours that are in line with the expectations of Quebec and Canadian society. We work for greater social and environmental justice.

RRSE has joined with the Canadian Network on Corporate Accountability, or CNCA, to push for a comprehensive due diligence framework in Canada.

There are several points I'd like to highlight.

First, we applaud Parliament's efforts to eradicate modern slavery and all forms of forced labour in internationalized supply chains. That said, we believe that the bill currently under consideration misses its purpose and target by seeking to segment the human rights issue without providing effective legislative mechanisms.

The current wording of Bill S‑211 espouses the philosophy of small steps and, at it stands, is too weak to have the right effect. It's based on the idea of reporting and on marginal, even symbolic, penalties and fines for bad actors among companies.

At RRSE, we're a group of investors. We've been doing shareholder engagement for 20 years. What does that mean? It means that we work with the concept of reporting, with data based on ESG criteria, that is to say environmental, social and good governance criteria, and that we look closely at information on value chains. We work with what companies report, with what they agree to report, and with the information made available by rating agencies and other institutions.

While some companies are showing improvements in human rights, it's easy to say that reporting isn't enough to really have the desired effect and avoid negative consequences for the environment and the human condition.

Only a review of Canada's legislative and regulatory framework to protect against and punish repeat bad actors will provide an appropriate response. It's essential to identify existing risks, but also to provide mechanisms for condemnation and redress in the event of abuse. To do that, judges must be given a role and a place, because that is the only real deterrent.

There are good practices. They're not present or represented in this text. They should be looked at on the European side, particularly in France, Germany and the Netherlands. This would allow us to create a common basis, a reality of territories that complement each other.

We've just come out of COP27, where we heard the claims of the people of the southern part of the globe. So I add my voice to that of Jacques Nzumbu, a Jesuit expert on Canadian mining companies, who came to see you a few weeks ago and who repeatedly explained the reality of his community, that is to say the reality of the children and women who work in mining companies in the Congo.

I would also like to add my voice to those of the Uighurs in Montreal who came to see us at the RRSE to ask us to help them and to make visible the reality of modern slavery in supply chains, wondering what action Canada was taking.

Finally, I would like to add my voice to that of Kalpona Akter, who travelled a long way from Bangladesh to come and talk to us about the reality and condition of the workers she is working with.

In a nutshell, from the RRSE's perspective, reporting is not enough. In this day and age, we need a more ambitious and effective voice that provides a stronger ethical framework for the practices of large companies.

Thank you.

[Cheryl Hotchkiss, Director, Strategy and Operations, International Justice Mission Canada]

Thank you.

Greetings, committee chair, committee members and fellow witnesses. My name is Cheryl Hotchkiss, and I am from IJM Canada, or IJM.

IJM is a global organization seeking to protect people living in poverty from violence. We partner with local authorities in 29 program offices in 17 countries to combat trafficking and slavery, violence against women and children, and police abuse of power.

It is now estimated that nearly 50 million people are enslaved around the world. Of these 50 million, 28 million are caught up in forced labour. The combined impacts of COVID-19, conflict and climate change have pushed more people into poverty, making them vulnerable to all forms of exploitation, including forced labour, and pressed parents and families to remove children from schools to work to help their families survive.

In countries where there are high rates of poverty, particularly extreme poverty, you will find broken systems caused in part by governments unable or unwilling to provide leadership to creating and maintaining healthy justice and social systems. COVID-19, conflict and climate change cause further degradation of these systems. Unhealthy systems enable all forms of lawlessness, create instability and breed fear. People living in poverty are forced into jobs where they can make a meagre income in risky jobs that often take them away from families, leaving them further isolated and at risk of exploitation. For women in forced labour there's an increased risk of violence, particularly sexual violence.

IJM is exposed to this grim reality in our efforts to help the most vulnerable receive protection and support from systems that didn't prevent and maybe even enabled exploitation. We know that an unhealthy legal system needs many actors to improve it and make it work for the most vulnerable so that they can find decent work where there's no fear of violence and exploitation. We believe that corporations have a critical role to play in helping unhealthy systems to improve and effectively protect vulnerable people. We appreciate that corporations are focused on generating good returns for investors and creating products that consumers want. They are not responsible for playing the role that governments should. But they have influence that can encourage and help governments undertake their responsibilities to protect their citizens effectively.

This is why for IJM, Bill S-211 is important. We know corporations have a positive opportunity to impact justice system reform. The governments in these countries where there is forced labour need corporations to have stable environments in which to do their work or gather resources they need for their products. Unhealthy justice systems mean an unstable society for everyone, including corporations. Voluntary codes of conduct or individual corporate efforts to address exploitation in supply chains create an unlevel playing field for corporations importing and selling products in Canada. Those who want to address forced labour and child labour in their supply chains bear the costs associated with that on their own and pass that on to the consumers.

Bill S-211 will enable justice and labour protection reform. It will do this by creating the conditions where corporations can work together, and will be encouraged to work together, to know what is in their supply chains. We've seen this happen with the Seafood Task Force in Thailand and Malaysia, where companies collaborated to create a level playing field to operate in the wake of similar legislation regarding forced labour in the fishing industry. With that information, they can act on their own or as a collective to press governments to take concrete action to improve justice systems for the most vulnerable, which includes listening to people who've been caught up in exploited labour and forced labour.

The bill will provide a collective and impactful deterrent to end forced labour and child labour through the imposition of the import prohibition. This ban levels the playing field for corporations that are making efforts to address forced and child labour in their supply chains to compete with those who aren't taking any action.

Finally, it will give Canadians, who care about the impact of their consumer choices, information to help them make better choices and use market forces to improve the supply chains for all products sold in Canada.

IJM is encouraged by Bill S-211 and wants the Canadian government to be involved in progressive efforts taken by other G20 nations so that the next ILO report on modern slavery has the numbers going in the right direction—downward.

Thank you.

[Emily Dwyer, Policy Director, Canadian Network on Corporate Accountability]

Good afternoon. Thank you very much for the invitation to be here.

My name is Emily Dwyer. I'm the policy director at the Canadian Network on Corporate Accountability, or CNCA.

We are grateful to parliamentarians for taking this issue seriously, and we urge them to act swiftly to address the many reports of human rights violations in Canada's global supply chains.

Modern slavery exists, and some Canadian companies are profiting from it. Canadians from coast to coast to coast want Canada to take decisive action to eradicate forced labour and other human rights abuses from Canadian supply chains, but in its current form, Bill S-211 would not prevent exploitation and abuse. Bill S-211 would do more harm than good.

Our network of 40 organizations and unions from across the country was formed in 2005 to collectively call for mandatory measures to require companies to respect human rights and the environment in their global operations. We represent the voices of millions of Canadians, and our members have long-standing relationships with communities, women, indigenous peoples and workers around the world.

Our membership does not support Bill S-211, because the bill as currently drafted would allow Canadian companies to continue to profit from human suffering and environmental damage. The harm we're talking about is not trivial. It ranges from forced labour to land and water contamination, workers' rights violations, killings and gang rapes, many of these linked to Canadian mining and oil and gas operations abroad.

Canada needs the right legislation if we are serious about tackling corporate abuse. Simply put, a law that requires you to report but does not require you to stop the harm you're causing may be easy to pass with all-party support, but it is also meaningless.

What is needed is a law that goes beyond a basic reporting requirement.

To get widespread support of civil society and to catch up to global momentum, supply chain legislation should, first, focus on preventing and remedying harm, rather than reporting; second, help impacted people access remedies; and third, apply to all human rights.

At best, Bill S-211 is meaningless, as it will not improve the situation for those who are harmed. At worst, the bill is damaging because it creates the appearance of action to end modern slavery without actually having any such effect.

Bill S-211 does not require companies to stop using or to stop profiting from child or forced labour. It does not require companies to take any steps to identify whether slave labour is in their supply chains. It does not require company directors to certify that their supply chains are free of forced labour.

If companies do make use of child or forced labour, the bill doesn't offer help to the victims at all. This means that a company could comply with Bill S-211 by taking no steps or by taking patently inadequate steps, remaining wilfully blind and continuing business as usual.

The evidence from other countries confirms that reporting-only laws have not been effective in addressing corporate abuse. For example, a five-year review of the U.K.'s modern slavery reporting registry “revealed no significant improvements in companies' policies or practice” and also said that it “failed to be an effective driver of corporate action to end forced labour”.

Europe is moving away from reporting-only approaches towards mandatory human rights and environmental due diligence laws. Canada should do the same.

It is urgent that communities and workers harmed in Canadian supply chains be protected from abuse and have access to remedy in Canada. We hope the process currently under way will ultimately lead to such a result, but we want to be very clear: Our network's position is that if Bill S-211 as currently drafted were to go to a vote today, we would be advising MPs to vote no.

We also believe that this committee needs to hear directly from impacted people and workers, and we note their absence from the speakers list. Kalpona Akter, herself previously a child worker and today a world-renowned labour rights activist from Bangladesh, joins me today and can intervene during the question and answer period.

We hope the committee will expand the number of sessions it holds so that it can hear directly from the directly impacted people around the world.

Thank you for your time.