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| Katherine Moloney |
The 105th session of the International Labour Conference considered decent work in global supply chains. During the general discussion on governance systems and measures, the Australian model was presented as an international example of good practice in cross-jurisdictional supply chain regulation (Passchier, 2016). The Australian model is paradigmatic. This article considers the core characteristics of its conceptual framework and its contextual adaptation in the Australian domestic textile, clothing and footwear (TCF) industry.
What is the Australian model?
The core characteristics of the Australian model can be summarised as follows.
Transparency and traceability through all tiers of the supply chain: The Australian model addresses human rights due diligence by mapping the flow of work and the associated transfers of money and goods in order to monitor contractual arrangements.
Contractual arrangements and cross-jurisdictional coverage: The Australian model conceptualises contemporary supply chains as a series of commercial contracts which govern the entire supply chain. Commercial influence is typically concentrated at or near the apex of the supply chain and exerted through complex, pyramidal contracting arrangements, often spanning legislative jurisdictions. Lead firms exercise commercial influence to ensure their commercial interests, notably in terms of price, time and quality. The capacity for commercial leverage is often incrementally curtailed with each successive tier down. Working within existing supply chain structures, the model therefore seeks to embed human rights due diligence protections and provisions in contractual arrangements. In this manner, businesses operating in a jurisdiction, as well as all subsequent tiers of the supply chain - even those outside that jurisdiction[1] - are governed by mandatory legal obligations, including compliance mechanisms and commercial remedies.
What is the Australian model?
The core characteristics of the Australian model can be summarised as follows.
Transparency and traceability through all tiers of the supply chain: The Australian model addresses human rights due diligence by mapping the flow of work and the associated transfers of money and goods in order to monitor contractual arrangements.
Contractual arrangements and cross-jurisdictional coverage: The Australian model conceptualises contemporary supply chains as a series of commercial contracts which govern the entire supply chain. Commercial influence is typically concentrated at or near the apex of the supply chain and exerted through complex, pyramidal contracting arrangements, often spanning legislative jurisdictions. Lead firms exercise commercial influence to ensure their commercial interests, notably in terms of price, time and quality. The capacity for commercial leverage is often incrementally curtailed with each successive tier down. Working within existing supply chain structures, the model therefore seeks to embed human rights due diligence protections and provisions in contractual arrangements. In this manner, businesses operating in a jurisdiction, as well as all subsequent tiers of the supply chain - even those outside that jurisdiction[1] - are governed by mandatory legal obligations, including compliance mechanisms and commercial remedies.
