July 19, 2011

Made in Thailand

As I browse through the interminable counters at Bangkok airport displaying colourful souvenirs made in Thailand, I cannot help but wonder who sewed the intricate embroidery on the scarf I’m about to spend my last few Thai Baht on. A heaven for bargain hunters, Bangkok is sprawling with malls and marketplaces selling everything from fake Gucci bags and gold watches to the latest electronic gadgets. As long as you are prepared to negotiate fiercely, you can walk away with some great deals, but your purchases may have come at a price for some. As part of an STR research project on South-South labour migration, I have spent a week in Thailand meeting with local NGOs, trade unions and workers to shed light on some of the challenges faced by migrants in the country.

There are around 1.2 Million migrant workers from Myanmar, Lao and Cambodia officially registered in Thailand and a further 1.2 Million undocumented workers according to International Organisation for Migration estimates. Most of these workers –around 70%– are from Myanmar and work in the construction and fishing industries. However, my research revealed that in reality, most industries using low-skilled labour in Thailand have a large proportion of migrants in their workforce, the majority of whom have entered the country illegally. This is true for the seafood processing, apparel and other manufacturing industries that produce goods for the export markets. Many pay carriers to take them across the border by boat to Mae Sot, in the Tak province where they work in factories for less than 100 Baht a day, well below the minimum wage. Their illegal status makes them more vulnerable to exploitation and many of them face severe human rights violations and work in conditions akin to slavery.

While they might be better off than their undocumented counterparts, documented workers are not sheltered from abuse in the workplace. I met several workers who had had their passports and work permits confiscated by their employer, a common practice in Thailand. Document retention does not only bind migrants to a workplace, it might also get them into trouble with the Thai authorities. If they are stopped by the police and cannot show a valid work permit, migrants may face extortion or arrest. A report published in 2010 by Human Rights Watch paints a depressing picture of the role of the Thai authorities in exploiting migrant workers.

While the outlook may seem bleak for migrant workers in Thailand, the type of issues they face are no different from the ones faced by migrants in other labour receiving countries.  Over the next few months, our team will be travelling to several more countries in Asia and the Middle East to conduct further research on labour sending and receiving countries. Follow me on twitter @Leiloucha92 to find out more about my next destination.

Leila Merouchi
By Leila Merouchi
Jul 19, 2011 6:38:29 AM | Stories from the Field

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Upping the Ante on Corruption: The Bribery Act As of July 1st the global effort to fight corruption will be enriched by a new tool: the UK Bribery Act 2010. The law raises the bar in global anti-corruption measures and companies worldwide should be sure to implement appropriate responses as it applies not only to UK citizens, residents and companies but also to such companies merely conducting business in the UK. Most internationally operating bodies are already familiar with the US Foreign Corrupt Practices Act (FCPA) and many have implemented corporate programmes to meet its requirements. However, what may be deemed adequate practices under the FCPA may not meet the Bribery Act’s standards.<br/> <br/> WHAT THE ACT DOES<br/> The Act creates the following four offences:<br/> <br/> 1. Active bribery, i.e. the promising or giving of a bribe<br/> 2. Passive bribery, i.e. the requesting or receiving of a bribe<br/> 3. Bribery of a foreign public official<br/> 4. Failure of a commercial organisation to prevent bribery committed by an associated person<br/> <br/> Notably bribery is not limited merely to the bribery of public officials but also extends to bribery within the private realm. Equally important is the Act’s strict reading of the term ‘bribery’ – there are no exceptions such as made under the FCPA, for example for facilitating payments.<br/> <br/> THE CORPORATE OFFENCE…<br/> The Bribery Act makes clear that an ‘associated person’ extends beyond traditional employees and agents and is any person performing services for or on behalf of the organisation – regardless of his capacity and the nature of the relationship. Importnatly, there is also no requirement that they be acting on the company’s instructions: the mere fact that they commit an offence under the Act suffices to trigger a company’s liability.<br/> <br/> Nevertheless, under section 7(2) companies can invoke a defence that they had in place adequate procedures designed to prevent bribery by associated persons.<br/> <br/> …AND DEFENCE<br/> So what are adequate procedures?<br/> In its Guidelines, the Ministry of Justice refuses to give a cookie-cutter, one-size-fits-all answer. Instead it emphasizes the importance and individuality of each company’s unique circumstances. This will range from considerations like nature of business and countries of operation to type of associates engaged and size of the company itself.<br/> <br/> Helpfully, the MoJ does identify 6 principles it suggest should underpin a company’s procedures:<br/> <br/> 1. Proportionate Procedures and Policies<br/> • Commitment to bribery prevention<br/> • General approach to mitigation of bribery risks<br/> • Strategy overview of implementation<br/> <br/> 2. Top-level Commitment<br/> • Top-level management should foster a culture in which bribery is not accepted<br/> • Depending on company size engagement may vary but at all times<br/> <br/> 3. Risk Assessment<br/> • Proportionate to the size, structure, nature, scale and location of operations<br/> • Oversight by top-level management<br/> • Appropriate resourcing<br/> • Identification of information sources to assess risk<br/> • Due diligence enquiries<br/> • Accurate and appropriate documentation of assessment and its conclusions<br/> <br/> 4. Due Diligence<br/> • Due diligence procedures applied that take a proportionate and risk-based approach in respect of persons who perform or will perform services for or on behalf of the organisation<br/> • communication should be clear that bribery is a zero-tolerance issue<br/> <br/> 5. Communication (incl Training)<br/> • Communication ensures all associated persons (internal and external) are aware of bribery prevention<br/> • Communication should convey ‘tone from the top’<br/> • Training can be general but also sector-specific considering relevant identified risks<br/> <br/> 6. Monitoring and Review<br/> • Monitoring should be constant<br/> • Reviews should consider any necessary changes that should be made<br/> • External verification and assurances of the effectiveness of anti-bribery procedures by third parties<br/> <br/> Many readers will probably find that much of this is common sense. And that is the Guidelines intention. The Bribery Act does not mean to create new onerous requirements likely to interfere with business. Of course, many businesses will undoubtedly find the need for a change of culture, especially when operating in corrupt countries where small payments are a normal part of business. However both the guidelines and the Secretary of State have repeatedly reiterated that the purpose is “not to bring the full force of the criminal law to bear upon well run commercial organisations that experience an isolated incident of bribery on their behalf [… but ] to encourage commercial organisations to put procedures in place to prevent bribery by persons associated with them.”<br/> That is not to mean that compliance with the legislation should be deemed negligible. Bribery has no place in business and the Bribery Act is a step toward more competitive and fair practice by creating an international level playing field. Everyone agrees bribery is wrong and that rules need reform. In implementing this Act, we are striking a blow for the rule of law and growth of trade. Any responsible company should embrace the Act’s implementation as an opportunity to enhance their own reputation for ethical standards.<br/>
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