Modern slavery reports rise at Wesfarmers

Wesfarmers has reported more than 500 breaches of modern slavery at its supplier sites in the past financial year, a jump from 386 breaches reported by the business in 2021.

According to the business’s Modern Slavery Statement 2022, Wesfarmers identified 593 reportable breaches at 307 of its supplier sites mainly relating to health, safety, hygiene violations, and excessive working hours.

“This equates to about seven per cent of all sites in our divisional ethical sourcing programs,” the statement said.

“Those reportable breaches relative to children and young workers do not include instances of child labour.”

In his foreword to the Modern Slavery Statement, managing director Rob Scott said Wesfarmers, which operated Kmart, Officeworks and Bunnings, had almost 26,000 suppliers across 40 countries.

Wesfarmers identified 386 breaches across 138 suppliers during the 2021 financial year, which is already a jump from the 340 breaches of modern slavery reported in the 2020 financial year.

Its 2022 statement said Wesfarmers identified 286 of the reported 593 breaches from its suppliers while the remaining 307 were from its supplier sites.

"For suppliers streamed into our ethical sourcing and monitoring programs, we monitor suppliers for minor, major and reportable non-conformances with our policies, standards and codes," the statement said.

"Where a minor, major or reportable non-conformance is identified, the divisions work with the supplier to remediate, through proportionate corrective action plans which address the specific needs of that situation.

"Breaches identify indicators of human rights issues which, if not managed, may escalate to instances of modern slavery."

According to the Modern Slavery Statement 2022, Wesfarmers exited seven supplier sites in the past financial year, representing 2 per cent of the reportable breaches.

The 2022 statement said three of the exits involved indications of forced labour in Malaysia, two exits were related to attempted bribery in China, one was for unauthorised contracting in China, and another exit was related to denying auditors access to site during monitoring in China.

Wesfarmers said through the 2022 statement that 42 per cent of reportable breaches were remediated and 56 per cent were in the process of being remediated.

"Where a reportable beach is identified, it is very rare for a supplier or supplier site to be exited," it said.

"Our preference is to support remediation, improving the conditions for workers.

"However, if the supplier is not willing or able to address a reportable breach within an agreed timeframe, or the breach is considered a severe breach of policy (such as bribery or unauthorised subcontracting), the division may decide to no longer place orders with that supplier and the supplier may be exited."