Exploitation has become the dominant business model in global trade, says a global trade union study by the International Trade Union Confederation (ITUC). More than 160 million workers make up the hidden workforce. They are employed indirectly in supply chains and subject to labor abuses but help big companies earn trillions of dollars.
Some of those workers are in Cambodia, where low wages are the major attraction to businesses. Transparency is lacking in the multiple layers of contractors and subcontractors employed by major companies. There are no safe, secure, regulatory environments that provide fundamental rights.
In 50 major companies, including Nestle, Coca-Cola, General Electric and Walmart, only six per cent of the workers in their supply chains are directly employed. The 50 companies have combined revenues of $3.4 trillion. Big companies have to work toward ensuring supply chain transparency, safe and secure work, a living wage and collective bargaining rights for all workers.
The situation for workers is made worse in countries like Cambodia because of domestic regulatory systems that are weak thanks to an unwillingness among governments to hold large companies accountable. If countries where multinationals are headquartered were to legislate to mandate due diligence, then it’s possible to prosecute companies across borders.
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