How Canadian Companies Can Use Tech to Identify Forced Labour in Their Supply Chains [Op-Ed]

Date:

Share post:

Levi Strauss Canada is yet another company facing allegations of forced labour in its supply chain. The allegations, which Levi Strauss denies, centre on whether the company is working with suppliers using Uyghur forced labour. With over 27 million people worldwide in forced labour, we can expect to witness similar allegations elsewhere in the coming years.

While Canada enjoys strong protections against labour exploitation, the issue of involuntary work may hit closer to home than expected. The reality is that forced labour could have been used to produce many of our everyday items, including clothing, electronics and vehicles.

Canada has taken a significant step in addressing this problem through the Fighting Against Forced Labour and Child Labour in Supply Chains Act. As of Jan. 1, 2024, companies with significant operations in Canada will be legally obligated to pay closer attention to the working conditions in their supply chains.

This act brings Canada’s efforts to address forced labour in alignment with other regions such as the United States, the United Kingdom and Australia.

Minister of Transport Omar Alghabra listens during an announcement at Port Metro Vancouver’s Centerm container terminal on Oct. 14, 2022. Canada passed legislation aimed at addressing forced labour and child labour in supply chains on May 3, 2023. THE CANADIAN PRESS/Darryl Dyck

Under this act, any entity with significant operations in Canada will be obligated to annually report on its efforts to prevent and remediate forced and child labour in its supply chains.

This includes disclosing information about relevant policies, due diligence processes, supply chain hotspots, employee training and remediation measures. The act also includes provisions for corrective measures and punishment.

Identifying forced labour with technology

The complex nature of supply chains makes identifying when and where forced or child labour occurs a significant challenge. Supply chains can contain thousands of suppliers that span continents. Even major international companies like Levi Strauss, which has a strong supplier code of conduct, can end up facing allegations of violations in their supply chains.

To explore how forced and child labour can be identified in supply chains, we conducted over 30 interviews with experts from around the world. These experts included representatives from non-governmental organizations, companies and auditing bodies, providing insight into how emerging technologies can be used to support identifying such practices.

The difficulty of identifying far-flung suppliers, for instance, could be simplified by using DNA to identify a product’s origin, as is done with cottonseafood and chocolate.

Drones and satellite imaging can be used to identify potential forced labour hotspots, such as remote brick kilnsmines or areas of illegal deforestation. AI can also predict areas at high risk of forced and child labor and direct attention to these regions.

Additionally, emerging technologies can help identify some forms of deception. Blockchain technology, for example, can provide an unalterable ledger of transactions in real time, preventing later manipulation. Artificial intelligence can quickly process immense quantities of data, which aids in detecting unusual patterns indicating potential fraud.

Technologies like DNA tracking can be used to trace the origins of raw materials. (AP Photo/Peter Dejong)

Addressing the risk of deceptive practices

In some cases, there are incentives for businesses to conceal illegal and immoral practices. Transparentem, a non-profit group focused on eradicating labour abuse, found evidence of deception during supply chain audits in garment factories in India, Malaysia and Myanmar. These deceptive practices include falsifying documents, coaching workers to lie and hiding workers who appeared to be unlawfully employed.

Based on in-depth interviews with auditors, suppliers, brand representatives and workers in the apparel industry, Human Rights Watch has found these risks are elevated when companies have advance notice of an upcoming audit.

Integrating sensors, cameras and other cloud technology can enable real-time monitoring of working conditions, mitigating the risks of advance notice of audits. Sensors and cameras, for example, have been used on fishing vessels to remotely transmit data in near real-time.

Worker voice platforms, such as those used in the electronics industry, allow workers to provide feedback directly through smartphone apps. This can serve as a real-time whistleblower mechanism for workers trapped in forced labour.

Technology is only part of the solution

Despite its potential benefits, technology still has weaknesses, like high costs, susceptibility to manipulation and weak data security, that need to be addressed. Blockchain technology, for instance, can codify manipulated or incorrect data unless the necessary precautions are taken.

Meeting the requirements of the Fighting Against Forced Labour and Child Labour in Supply Chains Act will require grounding technology in a broader risk-based approach consisting of supplier screening, monitoring and auditing.

In addition, even when technology does indicate the presence of forced or child labour, on-the-ground verification and follow-up is often required. Identification is just the first step. The act requires reporting on remediation, which is typically based on long-term collaborative relationships with local parties.

Addressing the issue of forced and child labour in supply chains is difficult and complex. While technology can help companies fulfil their reporting obligations under the act, identifying and remediating these crucial issues will require ongoing and concerted efforts.

The first report is due on May 31, 2024, so companies have no time to spare in working to comply with the act.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

By Cory Searcy, Professor, Mechanical and Industrial Engineering, & Vice-Provost and Dean of Graduate Studies, Toronto Metropolitan University, Grant Michelson, Professor of Management, Macquarie Business School, Macquarie University, Pavel Castka, Professor in Operations Management and Sustainability; Associate Dean Research at UC Business School, University of Canterbury.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Dollarama Surpasses 1,700 Stores in Canada, With Hundreds More Planned

Dollarama has surpassed 1,700 stores in Canada and continues to pursue a long-term goal of approximately 2,200 locations nationwide as expansion plans move forward.

Ruby Liu Unveils TM Wander at Tsawwassen Mills and Outlines Vision for Canadian Retail

Ruby Liu discusses the launch of TM Wander at Tsawwassen Mills, future expansion plans, shopping centre acquisitions, support for entrepreneurs, and her vision for the future of Canadian retail.

Canadians driving surge in event-led travel as domestic bookings jump 15%: Flight Centre

Travellers are prioritizing meaningful experiences and exploring destinations closer to home.

Roots reports Q1 sales growth of 6.5% to $42.6 million

Net loss totaled ($10.1) million, as compared to ($7.9) million in Q1 2025.

SportChek opens Canada’s first-ever floating futsal pitch on Toronto Waterfront

SportChek Harbourfront FC brings together free public programming, interactive fan experiences, community play spaces and retail activations inspired by the growing excitement surrounding soccer in Canada.

Good Earth Coffeehouse opens at University of Alberta Hospital

Good Earth Coffeehouse is a network of authentic coffeehouses with over 50 locations across Canada.

Mondetta Expands Modern Ambition with Toronto, Calgary and Vancouver Stores

Mondetta is expanding its Modern Ambition menswear brand with new stores in Toronto, Calgary and Vancouver, while evaluating additional opportunities across Canada, the United States and Europe.

Federal government launches National Food Security Strategy

With the average transaction sitting at approximately $12 per person, restaurants provide an accessible source of nourishment for millions of Canadians.

Daily Synopsis: Jun 11, 2026

HBC Royal Charter welcomed at Winnipeg Ceremony, FreshCo opening 1st Vancouver Island store, Palliser Furniture acquired by Chinese company after 80 years, Bulgari opens in Vancouver, Dickey's Barbecue Pit opening at West Edmonton Mall, and other news.

What Happened to Canada’s Women’s Fashion Chains?

Many of Canada’s iconic women’s fashion chains have disappeared. Retail expert Antony Karabus explains how fast fashion, casualization and economic shifts changed the industry.

Chanel Opens Largest Store in Canada at Oakridge Park in Vancouver

Chanel has opened its largest store in Canada at Oakridge Park in Vancouver. The 13,000-square-foot location is the brand's first full-concept store in Canada and a key addition to the development's luxury retail lineup.

Dollarama sees more than 21% year-over-year sales growth in Q1, surpassing $1.8 billion

Net earnings increased by 10.4% to $302.3 million, resulting in a 13.3% increase in diluted net earnings per common share to $1.11, compared to $0.98.

Advertising influencing people to place a bet: CPA Canada

“You can’t hide from it; gambling ads are everywhere."

lululemon Returns to Oakridge Park with New Store Concept

lululemon has returned to Oakridge Park with one of its newest Canadian store concepts, featuring Pacific Northwest-inspired design, local programming and community engagement.

Pinterest sports trend report shows surge in women’s sports fashion and beauty trends

The La Roche Posay activation will run until July 22. 

German outerwear brand Wellensteyn targets 2nd Canadian store after strong Niagara debut

The success of the 2,350-square-foot store at Outlet Collection at Niagara demonstrates that Canada is a promising market for the international company and the goal is to open another in 2027.

Jersey Mike’s Subs to open 3rd downtown Toronto location

Redberry will open the third downtown Toronto Jersey Mike’s Subs at 160 Bloor St. E. on Wednesday June 17, with a fundraiser for Make-A-Wish Canada.

Honestly Good Chicken Fingers opens 4th location at Stock Yards Village in West Toronto 

With locations in Etobicoke, The Well and Vaughan Mills, the Stock Yards Village opening marks the fourth location in the Toronto area and sets the stage for broader growth across Canada and the United States.

CFIB urges Ottawa to protect supply chains in Canada Labour Code reforms

"Cancelled orders, delayed shipments, lost income: small businesses pay the price every time federally regulated supply chains grind to a halt."

Financial anxiety surges in Canada as costs climb

The number of those gripped by anxiety when thinking about personal finances has surged to 60%.