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The EU adopted the Forced Labor Regulation (FLR)!! Read more on what your company can expect next in this article.

How do labor standards in local industries compare to those in countries from which goods are imported? By Hugo Keji The comparison of labor standards between local industries and those in countries from which goods are imported can vary widely depending on the specific countries involved. Here are some key factors to consider:-

🤝 Political Agreement Reached on EU Forced Labor Regulation - The Council and the European Parliament have reached a deal on an EU-wide ban on products made with forced labor 🔄 It covers both placing on the EU market & exports from the EU 👮♂️ It is based on a mechanism of investigations: - Investigations inside the EU will be carried out by Member States - Investigations outside the EU will be carried out by the Commission 🌐 No presumption of forced labor for specific regions: - Investigations will be risk-based (scale and severity of suspected forced labor, quantity of products, share of products likely made with forced labor and proximity of operators to forced labor risks and ability to use their leverage) - A list of high-risk areas and high-risk products will be drawn up and considered to prioritize investigations 🛑 In case of forced labor, decisions to ban, withdraw and dispose of products will be taken by the investigating authority and valid EU-wide: - Disposal requirements may be adjusted in case (i) of critical products and (ii) where only part of the product is made with forced labor - Products can be admitted back if forced labor has been eliminated from the supply chain 🔎 Indirectly, operators on the EU market will have to carry out due diligence to ensure their products are not made with forced labor 📄 To help implement the rules, the Commission will: - Establish a database of forced labor risk areas and products - Issue guidelines - Set up a Forced Labor Single Portal ⁉ Will this one hold? - The text must now be formally endorsed and adopted by the European Parliament and the Council - Votes scheduled on 13 March (Council) and April (European Parliament) #compliance #forcedlabor

The EU recently adopted the Forced Labor Regulation (FLR) to prohibit products made with forced labor from entering the EU market. Here are key points about this new regulation: - Forced labor encompasses coerced labor, abusive working conditions, excessive overtime, and debt bondage. - The FLR applies to all products and companies selling goods in the EU, including online sales. - It is a supply chain initiative, covering all products and components, irrespective of industry, origin, or supply stage. - The EU will establish a database of high-risk products and regions, along with bans on specific items and suppliers. - Enforcement will involve investigations and audits by competent authorities, with findings made public. - The FLR will complement existing and future due diligence processes, such as the CSDDD. - Expected enforcement of this regulation is slated for December 2027. While more detailed guidelines are anticipated, companies are advised to initiate their supply chain due diligence programs to evaluate potential risks. #ForcedLaborRegulation #SupplyChainDueDiligence Source: https://lnkd.in/ewtDRe4N

One of our predictions for this year anticipated increased labor activism impacting multi-industry supply chains. As we reach a mid-year point, that prediction is playing out. In our latest Supply Chain Matters commentary we highlight that U.S. East and Gulf Coast Dockworkers becoming more assertive by suspending ongoing contract renewal talks. The labor union's demands a match of that of US West Coast dock workers achieved and likely the same tactics. Yet another risk to consider especially in the peak of holiday related imports. https://lnkd.in/eGuXnkFj #logistics #supplychainmanagement

On November 19, the EU Council finally adopted the Forced Labor Regulation, which will require EU states to ban products made with forced labor. The Regulation will come into effect in three years. Given that there is no reversal of burden of proof (RBOP) for goods linked to state-imposed forced labor, it's effectiveness for combating Uyghur forced labor will depend greatly on how it will be implemented. The crux lies with section 47 of the Regulation: "Where in response to a request for information from a lead competent authority, an economic operator or a public authority refuses or fails...to provide information requested, provides incomplete or incorrect information ...including when a risk of forced labor imposed by state authorities is identified, the lead competent authority should be able to establish that the prohibition has been violated on the basis of any other relevant and verifiable information gathered during the preliminary phase of the investigation and the investigation" Without unfettered access to Xinjiang, the Commission’s ability to demonstrate forced labor is severely limited. This is where the new ILO Handbook for measuring forced labor becomes relevant, which is analyzed here: https://lnkd.in/gDeg2t3b By arguing that specific instances of forced labor in state-imposed contexts cannot be reliably measured because of the very nature of this type of coerced work, the ILO Handbook’s “General research considerations” provide guidance for the interpretation of this crucial section of the legislation, which has tied itself to ILO standards that the Handbook operationalizes. Specifically, the EU’s investigating authority could easily interpret section 47 in tandem with the new ILO Handbook to argue that the presence of forced labor is established by the existence of a relevant state policy, its enforcement on the ground, and the general inability to assess specific instances of forced labor, as outlined in the Handbook’s “General research considerations.” Even though this would not reverse the burden of proof, the investigating authority could then determine the presence of forced labor simply based on (1) a relevant database entry that documents the prevalence of forced labor in Xinjiang based on existing research reports, and (2) a demonstrated connection of an imported good with supply chains linked to Xinjiang. In so doing, the EU forced labor ban could operate in a more similar fashion to the UFLPA in regard to Xinjiang (although in contrast to the UFLPA, it lacks a preventive detention mechanism). Europe could then potentially avoid its current fate of being a dumping ground for goods made with forced labor from Xinjiang. See also this report on the adoption of the Regulation by Helene de Rengerve: https://lnkd.in/grMQgsnW https://lnkd.in/gamtCCRt

I urge the Labour Party to keep its promise to scrap zero-hours contracts. These contracts predominantly benefit foreign-owned companies, such as those from the United States, at the expense of hardworking individuals in our country. Zero-hours contracts offer no job security, no guaranteed income, and place workers in a precarious position, unable to plan their lives or support their families effectively. It is unacceptable that these contracts continue to be used, often by large, profit-driven corporations, to the detriment of workers' rights and dignity. The Labour Party has long stood for fairness and workers' rights. I believe it is crucial now, more than ever, to act on this commitment and put an end to zero-hours contracts. This step will not only protect workers but also promote fair and just employment practices across the nation. I sincerely hope that the Labour Party will prioritize this issue and fulfil its promise to abolish zero-hours contracts.

🤝 ILA and Employers Optimistic as Master Labor Contract Talks Begin 📑 The International Longshoremen's Association (ILA) and employers enter master labor contract talks with confidence. These negotiations are pivotal for maintaining labor harmony and operational efficiency at the ports. #LaborTalks #ILA #Employment #Ports #Negotiations 🔗 ILA and employers confident as master labor contract talks set to begin https://lnkd.in/e6U7VSDc

The US port workers will resume their duties on Friday, October 4th, following a successful negotiation of a wage agreement between union representatives and port management. The agreement, reached after intense discussions, addresses the workers' demands for improved compensation. Key points of the agreement include: 1. A substantial increase in hourly wages 2. Improved overtime rates 3. Enhanced benefits package The return to work will end the recent port disruptions and is expected to alleviate shipping delays and backlog. Normal port operations are anticipated to resume gradually over the coming days as workers return to their posts. Both union leaders and port management have expressed satisfaction with the outcome, emphasizing the importance of maintaining a stable and efficient port workforce. The new wage agreement is set to remain in effect for the next three years, providing stability for both workers and port operations.

Are you prepared for round 2 of the ILA/USMX labor negotiations? Salary adjustments have been settled, but what remains is the master agreement. The ILA’s primary concern in the ongoing master agreement negotiations with USMX centers on job security in the face of automation. With increased automation at ports, there’s a fear of displacing skilled labor essential to East Coast operations. Ports like the Port of Virginia have adopted semi-automated systems, causing concern among ILA members that this trend could lead to broader workforce reductions. The union argues that automation may cut costs but at the expense of skilled jobs, impacting the livelihood of workers who are vital to keeping operations efficient and secure. Balancing technological advancements with job preservation is key to the ILA’s stance, emphasizing the need for protections that support both innovation and workers. It is important to be mindful that the initial strike was settled in 3 days and the master agreement punted. Three days was enough to disrupt supply chains significantly and all indicators point to a longer outage if negotiaions are not fruitful before the January 15, 2025 deadline. To limit potential exposure, we recommend exploring these strategies: Nearshoring: Shifting production closer to home can reduce reliance on East Coast ports and improve resilience. Order Expediting: Receiving inventory sooner helps avoid potential disruptions, ensuring smoother operations. West Coast Rerouting: Diversifying entry points by considering West Coast options can reduce bottlenecks. KDL supports companies aiming to systemize their supply chain, mitigate risks, and enhance freight strategies and advocate being proactive to secure your supply chain. If you need assistance, feel free to email us at info@kdlog.com to set up a consultation. #SupplyChainTips #LogisticsPlanning #PeopleDriveLogistics"