Canadian industries seek extension on country's human-rights supply chain law

Canadian industries are pushing back against the country's planned January launch date of the Modern Slavery Act, intended to fight forced labour and child labour in supply chains, as mining and apparel trade groups say the government has failed to spell out the details of the law's requirements.

Canadian industries are pushing back against the country's planned January launch date of the Modern Slavery Act, intended to fight forced labour and child labour in supply chains, as mining and apparel trade groups say the government has failed to spell out the details of the law's requirements.

The act, passed in May, seeks to push corporations to provide greater transparency about their supply chains in order to avoid abetting what critics say amounts to modern slavery. The new measure takes effect on Jan. 1, 2024.

However, lobby groups including mining companies and apparel manufacturers are warning that a perceived lack of clarity about the rules could lead to unwanted penalties and prevent critical goods from entering Canada.

Canada's mining industry was originally among the first supporters of the government's initiative, which seeks to bring Canada on par with Australia and the United Kingdom which established similar laws in 2017 and 2015, respectively.

"We are not arguing or disputing the principle of what this bill is trying to achieve, or the specifics of what this bill is including," Ben Chalmers, vice-president of the Mining Association of Canada, said in a recent interview.

"We just want time to be able to do a better job when we start reporting, that is why we are seeking a one-year extension."

Under the new law, companies found to be in violation face penalties of up to $250,000, reflecting an increasing emphasis by global investors on ethical and social governance issues.