Twenty eight signatories of an open letter have shared their support for legislation against modern slavery, which is still in effect in some businesses today. Photo / 123RF
A group of major New Zealand investment companies with assets worth $215 billion has called for the Government to address the laws around modern slavery.
Twenty-eight signatories, including AMP Wealth Management New Zealand, ANZ New Zealand Investments and Westpac, have urged “political collaboration” to ensure passage of new laws addressing the issue.
Modern slavery covers a set of specific legal concepts including forced labour, debt bondage, forced marriage, slavery and slavery-like practices, and human trafficking.
It has been found in many industries worldwide, including garment manufacturing, mining and agriculture, affecting supply chains relating to the products consumers buy.
Dean Hegarty, Australasia’s co-chief executive at the Responsible Investment Association and one of the statement’s signatories, said that Kiwis, investors and victims of modern slavery deserve better.
“We can’t keep stalling while workers are exploited and our reputation erodes. The Prime Minister has said he would march for this cause, now the Government needs to show leadership and walk the talk,” Hegarty said.
The statement said modern slavery legislation was a “notable gap in our corporate regulatory landscape”, and that urgent action was required to protect our reputation and better manage the risks modern slavery creates for both people and businesses.
“With Modern Slavery Bills now proposed by both the National and Labour party... we stand at a tipping point to introduce legislation aimed at driving transparent and ethical supply chains,” the statement said.
“This is critical to protect vulnerable workers but also to maintain competitiveness and trust in our exports and brand.”
The joint statement said that a number of countries, including some of New Zealand’s key trading partners, have introduced laws requiring business to identify, address and report on modern slavery or broader human rights risks.
“However, Aotearoa New Zealand has failed to keep pace.”
In May this year, National’s Greg Fleming proposed the Modern Slavery Reporting Bill, which would require entities to report on how they identify, address, mitigate and remediate incidents of modern slavery -including trafficking in persons - within their operations and supply chains.
In July, Labour’s Camilla Belich proposed the Modern Slavery Bill, which aims to implement a fit-for-purpose statutory framework to support actions taken to combat modern slavery.
While Fleming and Belich both expressed their support for some form of modern slavery legislation to be made official, the Government hasn’t introduced any to the House of Parliament.
Fleming explained that the reason his proposed bill is as a member rather than from the Government is because of resistance from the Act Party.
“They see it as unnecessary, as another regulation on business. That’s only referring to the part around the need to annually audit your operations and supply chains and then report on that,” Fleming said.
“My boss [Prime Minister Christopher Luxon] is very supportive of the idea of a reporting framework, that’s why it hasn’t gone through as the Government bill.”
He said his bill has wide support in his caucus, and that he has discussed co-sponsoring a bill with Belich as they are aligned on the outcomes.
Fleming explained the situation had highlighted the barriers that come with the rule of 61.
If a bill achieves the support of 61 or more non-executive MPs, it bypasses the members’ ballot, commonly known as the biscuit tin, and is introduced directly to the House.
“The whole idea of the rule of 61 when it was introduced five years ago was to basically say to parties, look there’s lots of stuff surely that we agree on. If you can find some stuff that you do, then that can take precedent and members days can be really constructive instead of one side filibustering it.
“I haven’t met an MP yet, senior or junior, who doesn’t agree with the idea or with the concept. It’s just that no one will blink.”
One area where Fleming disagrees with Belich is the creation of a modern slavery commissioner. Fleming said this instead could be done as a deputy role under the Human Rights Commission.
He said amendments to the Crimes Act being worked on by Justice Minister Paul Goldsmith will address one part of Belich’s proposal.
Belich said her caucus is strongly in support of a comprehensive response to modern slavery that addresses exploitation in New Zealand’s supply chains.
“My member’s bill addresses these areas and also covers the reporting aspect of the National Party Bill,” Belich said.
“Chris Hipkins has written to Christopher Luxon offering our support for a Government Bill and we urge the National Party to act in accordance with their conscience and adopt my member’s bill or introduce a Government Bill. We must act.”
Modern slavery legislation in New Zealand has had several false starts in recent history.
In May 2024, the Coalition Government quietly disbanded the Modern Slavery Leadership Advisory Group, which was set up to provide advice on modern slavery law.
At the time, Workplace Relations and Safety Minister Brooke van Velden advised that the issue was not a current priority for the Government, instead choosing to focus on other workplace relations and safety issues like Pay Equity and the ongoing Holidays Act reform.
Labour’s progress on modern slavery legislation was similarly sluggish to that of the coalition Government.
The previous Government consulted on and sought submissions on modern slavery and worker exploitation in the early part of 2022.
Work on the issue was passed between ministers after the original minister in charge, Michael Wood, was forced to resign following his Auckland Airport shares scandal in 2023.
By July 2023, only a Cabinet paper had been produced alongside its proposed legislation, before all work on it was paused for the 2023 election.
Before this, Labour MP Dr Liz Craig introduced a Transparency in Supply Chains member’s bill in 2017, although this was withdrawn in March 2018.
In 2015, Labour MP Peeni Henare introduced a member’s bill, which was voted down. The concern was that the bill did not go far enough with respect to issues of definition.
In 2009, Maryan Street, another Labour MP, introduced a member’s bill seeking to amend the Customs and Excise Act to prohibit the import of goods produced by slave labour.
The bill was voted down at first reading.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.