Report on Supply Chain Compliance 3, no. 19 (October 1, 2020)
The Associated Press (AP) has been actively investigating forced labor conditions in supply chains for several years. A recent investigation[1] into palm oil plantations in Southeast Asia found that many workers were routinely forced to hand over their passports; were not paid commensurate with the work they were doing; and, when workers tried to stand up for their rights, they were threatened or harassed.
The palm oil industry, according to the investigation, is particularly insidious. Palm oil, according to the report, has seen a 900% spike since 1999 in the U.S. alone and “has exploded globally, soaring from just 5 million tons in 1999 to 72 million today.”
“Palm oil is virtually impossible to avoid,” the report states. “Often disguised on labels as an ingredient listed by more than 200 names, it can be found in roughly half the products on supermarket shelves and in most cosmetic brands. It’s in paints, plywood, pesticides and pills. It’s also present in animal feed, biofuels and even hand sanitizer.”
More than a hundred workers were interviewed, and the majority gave accounts of “their treatment, with some saying they were cheated, threatened, held against their will or forced to work off unsurmountable debts.” Hundreds of Western banks, investment funds, firms and other businesses are involved in the trade of palm oil.
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