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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

  • The COVID-19 pandemic reportedly increased the risk of forced labor in the Malaysian rubber glove sector,1 Peter, Zsombor. “Forced Labor Rising in Malaysia’s Rubber Glove Factories, Study Shows.” VOA News, 7 July 2021. www.voanews.com/a/east-asia-pacific_forced-labor-rising-malaysias-rubber-glove-factories-study-shows/6207942.html. demonstrating implications for the fact that the rubber glove sector will likely face ongoing shifts in demand and production needs. Traceability efforts in the sector should recognize the reality of these ongoing shifts and related shifts in procurement relationships. 
  • Most rubber glove manufacturers are large-scale and likely to have the capacity to participate in a wide range of traceability initiatives; however, there is also a danger that they may become overwhelmed with multiple demands from downstream customers, particularly if there are rapid changes in demand. Interoperability in traceability efforts will be important to ease this burden.
  • Like other manufacturing sectors, the rubber glove industry relies heavily on migrant labor in many countries, often recruited by third-party labor recruiters. These workers are vulnerable to forced labor indicators such as excessive fees and retention of identity documents. Understanding the practices of these recruiters is a critical aspect of combating forced labor risk. Downstream companies should consider traceability systems that allow for identification and engagement with specific facilities in their supply chains. Once individual worksites utilizing labor recruiters have been identified, companies can make efforts to understand the actual risks faced by workers on the ground. They can utilize systems that trace labor recruitment chains and assess the practices of recruiters at each site. For example, Verite’s CUMULUS Forced Labor Screen maps labor supply chains using patented technology to gather data on workforces, recruiters, and unethical recruitment and employment practices. This information can be used to prioritize on-the-ground assessments of recruitment, hiring, and labor conditions and implement any necessary prevention or remediation measures.   
  • As there is also risk in raw rubber inputs, certification programs offering Chain of Custody assurance and compliance against labor standards can help suppliers procure lower-risk inputs and offer assurances around both the raw materials and production.  

Nature of Labor Rights Risk/Vulnerable Workers

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

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

Documented presence of migrant workers

Documented presence or significant likelihood of third-party labor recruiters

Child Labor cited by U.S. Government

Risk of Child Labor cited by other source

Documented presence of other vulnerable workers

Features of Production and Supply Chain

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

High degree of flexibility in procurement practices of downstream entities

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

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

Distribution of Labor Risk in Various Production Areas

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

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)

  • The scale and nature of risk is specific to the geographic area. The risk is especially high in Malaysia, where it has been reported that the government has inadequately addressed labor trafficking allegations.16 U.S. Department of State. 2021 Trafficking in Persons Report, June 2021. www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.

Linked Upstream and Downstream Risks

Risk in Nodes in Rubber Gloves Production

The rubber glove supply chain is long and complex.17 Bhutta, Mahmood F., et al. “Global value chains for medical gloves during the COVID-19 pandemic: Confronting forced labour through public procurement and crisis.” Global Networks, 2022. onlinelibrary.wiley.com/doi/epdf/10.1111/glob.12360. The chains can be fragmented with intermediary suppliers that can hold significant influence.18 Bhutta, Mahmood F., et al. “Global value chains for medical gloves during the COVID-19 pandemic: Confronting forced labour through public procurement and crisis.” Global Networks, 2022. onlinelibrary.wiley.com/doi/epdf/10.1111/glob.12360. The manufacturers in Malaysia supply to distributors that then supply rubber gloves globally.19 Bhutta, Mahmood F., et al. “Global value chains for medical gloves during the COVID-19 pandemic: Confronting forced labour through public procurement and crisis.” Global Networks, 2022. onlinelibrary.wiley.com/doi/epdf/10.1111/glob.12360.

While the rubber glove manufacturing process is largely automated, workers play critical roles in removing gloves from hand-shaped forms used in the production line and in quality checking and packing. Natural rubber gloves are made from natural rubber (latex) while synthetic rubber gloves are made from nitrile.20 “Rubber Gloves Manufacturing Process.” Vaisala. www.vaisala.com/en/chemical-industry-solutions/chemicals-allied-products/rubber-gloves-manufacturing-process#:~:text=Natural%20rubber%20gloves%20are%20manufactured,calcium%20nitrate%20or%20calcium%20carbonate.. Bhutta, Mahmood F., et al. “Global value chains for medical gloves during the COVID-19 pandemic: Confronting forced labour through public procurement and crisis.” Global Networks, 2022. onlinelibrary.wiley.com/doi/epdf/10.1111/glob.12360.

Glove manufacturing (including quality assurance and packing)

Transportation

Wholesale and retail

Associated Upstream Goods with Labor Risk

Agriculture

Some rubber gloves utilize raw, natural rubber – an input associated with labor risks.

Associated Downstream Goods and Consumer Sectors

Healthcare and Pharmaceuticals

Rubber gloves are primarily used in the medical industry. They may also be utilized in the food and beverage industry, domestically in the home, and in industries where workers are exposed to chemicals (such as chemical manufacturing).

Top Global Countries

  1. Germany21List of exporters for the selected product in 2021 Product: 401511 Surgical gloves, of vulcanised rubber (excluding fingerstalls), ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c401511%7c%7c%7c6%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c1%7c1.
  2. Malaysia
  3. China
  4. Thailand
  5. Netherlands
  6. Austria
  7. Sri Lanka
  8. Belgium
  9. India
  10. Türkiye

Examples & Resources: Traceability Efforts Associated With Rubber Gloves

Footnotes