The Government of Canada wants to make sure that exploitative practices are removed from the supply chain.
The former Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (the Act), aims to:
- enhance industry awareness and transparency
- encourage businesses to improve their practices.
All government departments must now report on the measures that have been taken in the previous fiscal year to prevent and decrease the risk of forced labour and child labour within their operations and supply chains. This new requirement will:
- make sure that government procurement and contracting are accountable and transparent
- promote ethical practices and the following of human rights standards.
Please see Transport Canada’s first annual report below:
Part 1: Identifying information
Name of government institution:
Transport Canada
Financial reporting year (start date, end date):
April 1, 2023 to March 31, 2024
Indicate if this is a revised report:
Not applicable
Indicate if this is a report produced by a federal Crown corporation or a subsidiary of a federal Crown corporation:
Not applicable
PART 2: Report contents
2.1 Information on the government institution’s structure, activities and supply chains
The following accurately describes the government institution’s activities:
Purchasing goods in Canada and outside Canada
Provide additional information on the government institution’s structure, activities and supply chains.
At Transport Canada, approximately 57.5% of the annual value of our goods purchases were made through the use of PSPC tools such as Standing Offers and Supply Arrangements. Since November 2021, PSPC implemented anti-forced labour clauses in all goods contracts to ensure that it can terminate contracts where there is credible information that the goods have been produced in whole or in part by forced labour or human trafficking. Additionally, since November 20, 2023, all PSPC Standing Offers and Supply Arrangements for goods that have been issued, amended, or refreshed include anti-forced labour clauses. As such, all of our contracts for goods resulting from the use of these tools include clauses relating to forced labour which set out, among other things, human rights and labour rights requirements. These clauses can be found in the Policy Notification 150U1 – Anti-forced labour requirements.
2.2 Information on the steps taken to prevent and reduce the risk that forced labour or child labour is used at any step of the production of goods produced, purchased or distributed by the government institution.
Indicate steps taken in the previous financial year to prevent and reduce the risk that forced labour or child labour is used at any step of the production of goods produced, purchased or distributed by the government institution.
Transport Canada has integrated PSPC’s updated General Conditions for goods contracts and PSPC’s Code of Conduct for Procurement in our purchasing activities.
In addition, to prevent and reduce the risk of forced labour or child labour in our procurements, Transport Canada has used the following list of PSPC’s tools:
- Standing Offers
- Supply Arrangements
- Anti-forced labour contract clauses
Note: Given the recent coming-into-force date of the Supply Chains Act, government institutions may not have measures to report on for some of the requirements. Government institutions may indicate in their report that no measures have been taken to remediate forced labour or child labour in their activities and supply chains, or that action plans have not yet been implemented, if that is the case. Doing so is sufficient to meet the government institution’s legal obligations.
2.3 Information on the policies and due diligence processes in relation to forced labour and child labour
Does the government institution currently have policies and due diligence processes in place related to forced labour and/or child labour?
Yes.
Effective April 1, 2023, amendments to the Treasury Board Directive on the Management of Procurement require contracting authorities from all departments listed in Schedules I, I.1 and II of the Financial Administration Act (with the exception of the Canada Revenue Agency) and commissions established in accordance with the Inquiries Act and designated as a department for the purposes of the Financial Administration Act to incorporate the Code of Conduct for Procurement (“the Code”) into their procurements.
Pursuant to the aforementioned amendments, Transport Canada has integrated the Code into our procurements, with a view to safeguarding federal procurement supply chains from forced labour and child labour. Contracts that our organization has awarded included the Code through the General Conditions for goods.
The Code requires that vendors, providing goods and services to the Government of Canada and their sub-contractors, comply with all applicable laws and regulations. In addition, the Code requires vendors and their sub-contractors to comply with Canada’s prohibition on the importation of goods produced, in whole or in part, by forced or compulsory labour. This includes forced or compulsory child labour and applies to all goods, regardless of their country of origin.
The prohibition on the importation of goods produced wholly or in part by forced labour came into force under the Customs Tariff on July 1, 2020. This amendment implemented a commitment in the Labour Chapter of the Canada-United States-Mexico Agreement (CUSMA) and applies to all imports, regardless of origin.
The following elements of the due diligence process have been implemented in relation to forced labour and/or child labour:
- Embedding responsible business conduct into policies and management systems
If applicable, please provide additional information on the government institution’s policies and due diligence processes in relation to forced labour and child labour.
Not applicable
2.4 Information on the parts of its activities and supply chains that carry a risk of forced labour or child labour being used and the steps taken to assess and manage that risk
Has the government institution identified the parts of its activities and supply chains that carry a risk of forced labour or child labour being used?
No, we have not started the process of identifying risks.
In May 2021, a risk analysis of PSPC’s supply chains was completed by Rights Lab, of the University of Nottingham (U.K.), to determine which goods were at the highest risk of exposure to human trafficking, forced labour, and child labour. The analysis, and subsequent report, elaborated key strategies for PSPC to leverage public spending power to raise awareness about forced labour in supply chains. Transport Canada is reviewing the risk assessment provided by PSPC, and are monitoring related follow-action, including the development of a Policy on Ethical Procurement.
Has the government institution identified forced labour or child labour risks in its activities and supply chains related to any of the following sectors and industries?
NOT APPLICABLE
2.5 Information on any measures taken to remediate any forced labour or child labour
Has the government institution taken any measures to remediate any forced labour or child labour in its activities and supply chains?
Not applicable, we have not identified any forced labour or child labour in our activities and supply chains.
2.6 Information on any measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in the institution’s activities and supply chains
Has the government institution taken any measures to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced or child labour in its activities and supply chains?
Not applicable, we have not identified any loss of income to vulnerable families resulting from measures taken to eliminate the use of forced labour or child labour in our activities and supply chains.
2.7 Information on the training provided to employees on forced labour and child labour
Does the government institution currently provide training to employees on forced labour and/or child labour?
NO. Transport Canada is aware that PSPC is currently developing awareness-raising guidance materials (including risk mitigation strategies) for suppliers, targeted towards high-risk sectors. We are monitoring the development of these materials and will leverage these resources upon their publication.
If applicable, please provide additional information on the training the government institution provides to employees on forced labour and child labour.
Not applicable
2.8 Information on how the government institution assesses its effectiveness in ensuring that forced labour and child labour are not being used in its activities and supply chains
Does the government institution currently have policies and procedures in place to assess its effectiveness in ensuring that forced labour and child labour are not being used in its activities and supply chains?
No