The BBC released a documentary: ‘Slavery on the High Street’ which describes how 18 modern slavery victims found themselves undetected in the value chain of major UK companies: McDonald’s, Asda, Co-op, M&S, Sainsbury’s, Tesco, and Waitrose.
We delve into these two cases and takeaways for business - based on the reporting from the BBC.
Top takeaways for companies:
- Countries that may be viewed as lower risk for human rights risks (e.g. UK) can still be high risk
- If your business partners (franchisees, contractors, suppliers) don’t know what the red flags for modern slavery are, they won’t be able to spot modern slavery - let alone address it
- Be transparent and engage openly when faced with modern slavery findings so that others can learn from the process
Where? McDonald’s franchisee in Cambridge (2 hours north of London), UK
When did it happen? 2015 - 2019
What happened?
- A couple from the Czech Republic (Ernest Drevenak and Veronika Bubencikova) approached a group of nine men in the Czech Republic who were homeless, unemployed or in very low paid jobs - promising them a better life in the UK
- When they arrived in England, the couple got jobs for the men at a McDonald’s in Caxton Gibbet
- From 2015 to 2019, the men were working in the McDonald’s in a situation of modern slavery. Their movements were controlled by the couple, they were provided £40-120 in cash every two weeks and lived in an overcrowded property (six sharing a room). It is estimated the couple stole at least £200,000 from the men over the four-year period.
- The exploitation ended in October 2019 after the victims contacted police in the Czech Republic, who then provided the information to the British police.
What did the McDonald’s franchisee miss?
- The men spoke little or no English. The trafficker was present during the interviews under the guise of offering interpretation
- Some of the men had the same registered address
- The wages for several workers were paid into one bank account belonging to the couple
- The men consistently accepted overtime from McDonald’s - working 12-16 hour shifts - between 70 to 100 hours a week
McDonald’s UK did not participate in an interview and its written statement notes that it had commissioned an independent review to strengthen its processes with its franchisees - including when it comes to “shared bank accounts, excessive working hours, and reviewing the use of interpreters in interviews.” This review is also referenced in the company’s latest modern slavery statement.
Top takeaways for companies:
- Consider the very real limitations of audits to detect modern slavery
- Consider whether victims are provided meaningful remedy when companies disengage
- Consider the role of grievance mechanisms and leverage with peers in providing meaningful remedy for modern slavery victims
The same gang (Ernest Drevenak - and his brother) were involved in another case involving other companies. Nine other victims were trafficked and worked at factories in north London and Hertfordshire, making supermarket own-brand products (pita flatbreads).
The modern slavery was detected in 2019.
Here is an overview of the companies’ responses to the investigation (according to the BBC):
- Speciality Flatbreads: “The company has been thoroughly audited by top law firms and everything we were doing was legal.”
- Asda: made three visits but focused solely on food safety
- Tesco: inspections had been conducted by charity Unseen that had revealed “concerning working practices” and the company ceased orders in 2020
- Waitrose: pulled out in 2021 after its audits led to “concerns about factory standards and working conditions.”
- The Co-op: made “a number” of unannounced inspections, including worker interviews, but found no signs of modern slavery.
- M&S: suspended and delisted the company in 2020 after it “became aware of potential breaches of ethical labour standards via the modern slavery helpline.”
