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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

  • Labor risk in carpet production can be associated with the production of inputs such as cotton, wool, and silk, as well as with the weaving and production of the rugs themselves. Robust due diligence and traceability efforts should acknowledge risk in the raw materials as well as production assembly. As carpet production has modernized, it is more common to see raw materials value chains crossing international borders.
  • Upstream weavers in carpet supply chains are often small, informal, and dispersed. In some countries, subcontracted production can be “mobile,” with looms and workers moved between households.1Shuja, A.  “They Bear All the Pain” – Hazardous Child Labor in Afghanistan. Human Rights Watch, 14 July 2016, www.hrw.org/report/2016/07/15/they-bear-all-pain/hazardous-child-labor-afghanistan. The prevalence of informal household weavers in carpet production can make traceability more difficult, while simultaneously representing a high degree of labor rights risks, particularly for child labor.2Shuja, A. “They Bear All the Pain” – Hazardous Child Labor in Afghanistan. Human Rights Watch, 14 July 2016, www.hrw.org/report/2016/07/15/they-bear-all-pain/hazardous-child-labor-afghanistan. Supply chain mapping approaches, working backwards from Tier 1 suppliers, can enable some visibility into upstream worksites and allow for more targeted assessments of labor conditions at those sites. Due to the presence of vulnerable migrant families involved in supply chains in many areas, any on-site labor assessments must be culturally sensitive and incorporate an understanding of unethical recruitment dynamics.
  • In the Xinjiang region of China, carpet manufacturing has been associated with government-imposed forced labor. In such cases where production in a region is tightly linked to systemic factors and due diligence at the worksite is not feasible, traceability systems should allow downstream buyers to screen out materials from the high-risk region.

Nature of Labor Rights Risk/Vulnerable Workers

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence of other vulnerable workers

Documented presence or significant likelihood of third-party labor recruiters

Features of Production and Supply Chain

Large numbers of dispersed, unorganized, or informal small producers or other worksites

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex/opaque supply chains and/or lack of vertical integration

High degree of flexibility in procurement practices of downstream entities

Distribution of Labor Risk in Various Production Areas

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

Scale or nature of risk varies significantly based on geographic area of production

Linked Upstream and Downstream Risks

Risk in Nodes in Carpets Production

Carpet production begins with the acquisition of silk, wool thread, and chemical or natural dyes, either through imports or domestic production.31Ties that bind: Child Labor in the Afghan Carpet Sector – A Value Chain Study in Herat and Faryab. Goodweave and Samuel Hall, June 2014, www.samuelhall.org/publications/Goodweave-ties-that-bind-child-labour-in-the-afghan-carpet-sector?rq=child%20labour%20in%20the%20Afghan%20carpet. Input traders sell these products directly to weavers or middlemen.32Ties that bind: Child Labor in the Afghan Carpet Sector – A Value Chain Study in Herat and Faryab. Goodweave and Samuel Hall, June 2014, www.samuelhall.org/publications/Goodweave-ties-that-bind-child-labour-in-the-afghan-carpet-sector?rq=child%20labour%20in%20the%20Afghan%20carpet. Weavers can be individual rural households or factories in urban centers; this stage of production is fragmented and can be easily relocated.33Kara, S. “Tainted Carpets: Slavery and Child Labor in India’s Hand-Made Carpet Sector,” FXB Center for Health and Human Rights, 2014, fxb.harvard.edu/2014/01/28/tainted-carpets-report/. Middlemen, who exist between contractors and weavers, oversee weaving production, distribute remuneration, and can also weave carpets themselves.34Kara, S. “Tainted Carpets: Slavery and Child Labor in India’s Hand-Made Carpet Sector,” FXB Center for Health and Human Rights, 2014, fxb.harvard.edu/2014/01/28/tainted-carpets-report/. The middlemen transport carpets to contractors and exporters.35Kara, S. “Tainted Carpets: Slavery and Child Labor in India’s Hand-Made Carpet Sector,” FXB Center for Health and Human Rights, 2014, fxb.harvard.edu/2014/01/28/tainted-carpets-report/. Contractors and loom owners receive carpet orders from exporters and purchasing agents, and then either contract with weavers using the looms owned by the contractors themselves or with household weavers via middlemen.36Kara, S. “Tainted Carpets: Slavery and Child Labor in India’s Hand-Made Carpet Sector,” FXB Center for Health and Human Rights, 2014, fxb.harvard.edu/2014/01/28/tainted-carpets-report/. The contractors then transport the carpets to a finisher or exporter, who performs chemical washings of the carpet before selling the carpets to either the domestic market and domestic retailers or to traders that move the carpets into the international market.37Kara, S. “Tainted Carpets: Slavery and Child Labor in India’s Hand-Made Carpet Sector,” FXB Center for Health and Human Rights, 2014, fxb.harvard.edu/2014/01/28/tainted-carpets-report/; Ties that bind: Child Labor in the Afghan Carpet Sector – A Value Chain Study in Herat and Faryab. Goodweave and Samuel Hall, June 2014, www.samuelhall.org/publications/Goodweave-ties-that-bind-child-labour-in-the-afghan-carpet-sector?rq=child%20labour%20in%20the%20Afghan%20carpet.

Weaving (Household or Factory)

Washing and Finishing

Packing for Sale or Export

Maritime Shipping

Wholesale Storage

Retail

Associated Upstream Goods with Labor Risk

The production of silk thread is associated with child labor in India.

The production of thread/yarn (which may be made from cotton) is associated with forced labor in China and child labor in India.

Associated Downstream Goods and Consumer Sectors

Household Goods

Carpets are associated with the Household Goods consumer sector.

Textiles Apparel and Luxury Goods

Carpets are also associated with the Textiles, Apparel, and Luxury Goods sector.

Top Global Countries

  1. China38List of exporters for the selected product in 2021. Product: 57 Carpets and other textile floor coverings. ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c57%7c%7c%7c2%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c1%7c1.
  2. Turkey
  3. India
  4. Belgium
  5. Netherlands
  6. United States of America
  7. Germany
  8. Egypt
  9. Vietnam
  10. Iran

Examples & Resources: Traceability Efforts Associated With Carpets

Footnotes