Modern slavery risks need urgent action: RIAA panel

Migrant worker advocate Jennifer Alonso held the room still as she put a human face to exploitative labour practices that heighten modern slavery risks.

Alonso, the worker engagement officer at Cleaning Accountability Framework (CAF), shared her testimony about wage theft and unsafe workplace conditions when she worked as a cleaner.

"During COVID, my coworker behaved in a very intimidating way to me, making inappropriate comments... I was scared, so I stayed quiet."

She said many temporary visa holders faced unpaid trials, and even when they were paid, they often missed out on minimum wage, super and other basic entitlements.

"Many workers are afraid of losing hours or losing their job completely. That's why they just stay quiet."

Call for reforms

Anti-slavery commissioner Chris Evans said that the standards are "nowhere good enough" and companies should do more to uncover any modern slavery practices within their supply chain.

The commercial property, hospitality and agricultural sectors are among those heavily exposed as they sub-contract service jobs.

Evans drew on a major study of worker conditions by the Migrant Jutice Institute released earlier this month to call for reforms.

"Three-quarters of the 10,000 [surveyed] reported having been underpaid... That's not an occasional breach by a rogue employer. That's the system not working."

He said the red flags are easy to spot. Companies should check if there are multiple subcontractors under the same contract and whether staff are getting paid under the standard full-time wage slips or through ABNs.

"These are systemic issues... subcontracting on subcontracting on subcontracting, and multiple ABNs... all those things are warning lights."

Evans is campaigning for tighter rules and penalties for non-compliance.

At present, the Modern Slavery Act reporting requirements only apply to companies with at least $100 million in revenues, but the government wants to lower that threshold to $50 million, with a public consultation now underway to pass that into law.

Material risk to investors

Panel moderator Måns Carlsson OAM, head of ESG and co-portfolio manager at Ausbil Investment Management, said that workforce conditions that heighten the possibility of Modern Slavery Act breaches impact investments, not just as 'negative surprises' to the market but also in transparency.

"We have been encouraging more disclosure... but we will never know how many companies have found cases [of workplace violations] and just cut the suppliers. That's a big unknown."

Carlsson, who is part of the RIAA board, participated in a workshop at the conference designed to help financial advisers better understand how to exclude harmful human rights practices from their investments.

His fellow workshop host, Rachel Alembakis, stewardship manager at U Ethical, said, "The point of the workshop was to help participants understand and practice using the tools and strategies necessary to engage with companies to support them in finding, fixing and preventing modern slavery in a collaborative and open way."

"It was pleasing and fulfilling to see participants wholeheartedly take up the scenarios and work through the strategies and we hope they have become more comfortable with engaging on this issue."

Besides industry workshops, portfolio companies can also engage with advocates like Alonso through her employer CAF, which runs a certification scheme to eradicate Modern Slavery in supply chains.

Commissioner Evans' key message to the conference delegates is to help shape policies and operations based on lived-experiences of survivors and to encourage reporting of modern slavery non-compliance.

"The Modern Slavery Act is designed to find modern slavery and remediate it... I congratulate the companies who find it, because they're looking properly."

"People declaring they're finding it is an example of the system working."

FS Sustainability is a media partner of the 2026 RIAA Conference held in Melbourne May 27-28.