The exploitation of migrant workers, especially if they are illegal or kept in work under duress, poses potentially serious risks to business for being directly or indirectly responsible for human rights abuses, particularly if they occur within supply chains. ILO Recommendation No. 151 on Migrant Workers states that migrants should enjoy effective equality of opportunity and treatment with nationals, including in access to vocational training, security of employment, remuneration, conditions of work and housing, and union membership.

Migrants who experience discrimination at work are denied opportunities and have their basic human rights infringed. This affects the individual concerned and negatively influences the greater contribution that they might make to society. Discriminatory practices in employment and occupation restricts the available pool of workers and skills and therefore the opportunities for the development of skills and infrastructure to strengthen competitiveness in the global economy. Discriminatory practices on the part of an employer can damage a company’s reputation, as well as place them at risk of legal action. Businesses are at risk of complicity either if they actively discriminate against certain groups or if they do not take steps to address prevalent societal discrimination that translates into disadvantages in hiring patterns, compensation, training and promotions.

The following examples were identified through background research:

• Kazakhstan has a considerable number of migrants and refugees who are either provided a renewable, temporary status, or tolerated but are not granted any legal status. Many are vulnerable to exploitation, including through forced labour, child labour, trafficking and sub-standard working conditions.
• In South Africa, competition for resources and jobs has fuelled resentment among some against economic immigrants and asylum seekers. In May 2008, xenophobic violence resulted in the deaths of 62 people and thousands of injuries. It resulted in 40,000 foreign nationals leaving, the displacement of over 50,000 people and 1,000 arrests.
• In South Korea, migrant workers are required to annually renew their employment contracts and are limited in their ability to change jobs. The UN Special Rapporteur on migrant rights has said that, for fear of the non-extension of their contracts, many migrants fear lodging complaints against employers – many of whom take advantage of the legal situation.
• In May 2009, Human Rights Watch claimed that “unlawful recruiting fees, broken promises of wages, and a sponsorship system that gives an employer virtually complete power over his workers” has, in the United Arab Emirates, led to a “cycle of abuse that leaves migrant workers deeply indebted, badly paid, and unable to stand up for their rights or even quit their jobs.”

How does a company respect the right to non-discrimination and good working conditions of migrant workers in its value chain when its business partners or suppliers are based in a country where legal requirements create conditions of vulnerability and allow employers to exploit and discriminate against migrant workers?

The following have been identified as possible components of this dilemma:

• Discriminatory laws
• Absence of laws that protect migrants
• Societal discrimination
• Discrimination by authorities
• Cultural acceptance of discrimination
• Harassment and violence against migrants
• Alleged complicity in violations by private or public security forces