The UK must shut down loopholes that allow companies to exploit workers and undercut British businesses. If not, the country risks becoming a “dumping ground” for goods made in poor conditions, according to MPs.
A new report from the business and trade select committee urges the government to make supply chain transparency mandatory. Companies should outline how they plan to tackle modern slavery. The report also calls for stricter penalties, including publicly naming firms that fail to comply.
MPs stress that urgent action is necessary. The US and Europe are cracking down on imports linked to forced labor, leaving the UK vulnerable. The committee chair, Liam Byrne, warned that without stronger measures, the UK risks falling behind global efforts.
Concerns Over Fast Fashion and Forced Labor
MPs expressed shock over the lack of transparency from Shein, the budget online retailer. The company, which mainly manufactures in China, failed to clarify if it used cotton from Xinjiang. The region has been linked to forced Uyghur labor.
Shein hopes to list on the London Stock Exchange this year. However, it admitted that UK-bound shipments lack the same strict checks required in the US. This discrepancy raises concerns about weak enforcement in Britain.
“The UK is now in danger of becoming a dumping ground,” Byrne said. He emphasized that weak safeguards allow firms to import goods produced under unethical conditions.
Calls for Stronger Employment Laws
The committee also urged changes to the upcoming employment rights bill. It called for tougher regulations on zero-hours contracts and better notice periods for shift changes. MPs also want faster action against false self-employment.
Byrne stressed that fair rules benefit both workers and businesses. “We need to ensure good British firms are not undercut by bad companies exploiting workers,” he said.
The report recommends a clear definition of “reasonable notice” for shift changes. It also proposes a reference period to determine regular working hours for zero-hours contracts. Byrne warned that without these details, the bill could become ineffective.
“We can’t let this bill be so full of holes that bad companies keep exploiting workers,” he said.
Government Promises Action
The government plans to review the report and respond. A spokesperson said the employment rights bill aims to improve conditions for workers and businesses alike. Officials believe that strengthening labor laws will help economic growth.
Several updates to the bill will be presented in parliament this week. One expected change is setting a nine-month probation period for new workers instead of six. Another proposal is to remove the “right to switch off” outside work hours.
The new Fair Work Agency will also receive expanded powers. It will combine several existing bodies to tackle modern slavery. The agency will conduct investigations, file civil cases, and issue fines.
A government source said the goal is to balance workers’ rights with business needs. “Stronger protections will improve living standards, boost productivity, and help businesses grow,” the source said.
The government has consulted businesses to shape the legislation. It insists that better worker protections will benefit both employees and companies in the long run.
Stay tuned to London Pulse new for more updates.
