Vulnerabilities to Modern Slavery? Predicting the presence and location of informalised workplaces in the context of the Covid-19 pandemic

Lead Research Organisation: Nottingham Trent University
Department Name: Business School

Abstract

Informalised businesses secure competitive advantage by labour exploitation, particularly migrant workers who tolerate insecure, irregular hours, wage underpayment and no holiday pay. Other aspects of modern slavery 'bond' labour to workplaces where accommodation and subsistence act as payment in kind. Since 2016, businesses using informalized employment and modern slavery annually generate 12% of Britain's GDP sustaining 2.5 million workers equal to 9% of formal private sector workers. The Covid-19 lockdown in Leicester has highlighted that these practices remain coercive and unsafe for workers but are potentially dangerous and life threatening beyond the site of employment.

This research project focuses upon the following key issues:

1.Estimating the scale and location of informal workplaces in specific sectors: Despite awareness of issues relating to the informal economy, there are no official estimates of the scale of this economic sector (and local sector case studies cannot be aggregated to generate sector-specific business totals). The first work package will therefore provide (a) an accurate estimate of the number of hand car washes, nail bars, and garment manufacturers in England and Wales, and (b) identify the spatial factors and neighbourhood characteristics that influence the location of these businesses. We draw upon information from Facebook and Google Maps, in conjunction with virtual drives through individual neighbourhoods via Google Streetview, to track down the presence of informalised businesses. Using official data sources and statistical modelling, we are then able to identify the distinguishing characteristics of those neighbourhoods containing hand car washes, nail bars or garment manufacturers - and those neighbourhoods that do not. This enables us to (a) predict those neighbourhoods across England and Wales where informal businesses are more likely to be located; and (b) understand the factors that shape the presence of these businesses - and how this can inform strategic enforcement and the targeting of interventions. The absence of this type of information has hitherto limited the ability of enforcement agencies to move from reactive, intelligence-led interventions towards proactive geographically informed actions.

2.The Covid-19 pandemic has clearly restricted the movement of potential customers and workers in relation to informal businesses. Google Mobility data, however, has revealed distinctive spatial variations in the scale and location of journeys made by residents. The Clewer Safe Car Wash app enables consumers to register any concerns with the Modern Slavery Helpline. Utilising the mobility and Clewer data, this research will also examine the extent to which there is a relationship between the transformation of mobility levels, the ability of consumers to act as 'enforcement' agents (in relation to hand car washes), and the predicted location of hand car washes, nail bars, and garment manufacturers across neighbourhoods in England and Wales.

3.Our research has already informed the activities of enforcement agencies more generally in relation to hand car washes. Using our partnership with these organisations, the final component of this research project will use site visits in conjunction with enforcement agencies to informal businesses to explore how the Covid-19 pandemic has impacted upon employers, workers - and the extent to which it has facilitated or disrupted pathways into modern slavery.

The knowledge and data generated by this research project will then be transformed into an online interactive resource and neighbourhood level map that will enable enforcement agencies to (a) better understand the nature and location of informal businesses; (b) target their interventions more effectively; and (c) tailor the nature of these interventions in relation to specific sectors within the informal economy.
 
Description In many sectors of employment that are subject to labour market non-compliance, such as employee coercion and exploitation, modern slavery is not necessarily the employer starting point. However, if instances of coercion and exploitation are not addressed they may de-generate into modern slavery. Therefore, it is important not to just focus on MS but aspects of labour market non-compliance that may precede modern slavery.
Exploitation Route By examining in more detail the relationship between coercion, exploitation and modern slavery and how what some describe as routine labour market exploitation can de-generate into modern slavery.
Sectors Agriculture, Food and Drink,Communities and Social Services/Policy,Construction,Education,Healthcare,Government, Democracy and Justice,Retail,Security and Diplomacy

 
Description Our initial findings on garment manufacturing in Leicester (this project only commenced in December 2020) have informed the Director of Labour Market Enforcement at BEIS. Similarly the status of our project has informed on-gong collaborative work with the Home Office and GLAA and the responsible car wash scheme. Our research findings feed into a successor project commissioned by ODLEM/BEIS and will feed into a second commission by the NCA
First Year Of Impact 2022
Sector Government, Democracy and Justice,Retail
Impact Types Societal,Economic,Policy & public services

 
Description Commissioned research for BEIS/ODLME on the triggers of labour market non-compliance/modern slavery
Geographic Reach National 
Policy Influence Type Contribution to new or Improved professional practice
Impact Our work has improved the knowledge base and enables regulators and enforcement agencies to think about enforcement on a geographical and predictive basis
 
Description Our research has a regular impact on labour market enforcement strategies devised by the Office of the Director of Labour Market Enforcement with whom we meet on a regular basis
Geographic Reach National 
Policy Influence Type Contribution to a national consultation/review
Impact For HMRC and ROCU's our data base is much better than theirs and its application has informed their operational and strategic thinking. THE ODLME have great confidence in our geographical, spatial and predictive models that inform enforcement operations more effectively than solely intelligence led operations.
 
Title spatial and predictive modelling 
Description Once we have contact information on the location of informal non-compliant workplaces from regulators (small unit garment manufacturers) and or once we have built our own data set on the location of specific workplaces (hand car washes, nail bars) we map them spatially, we then look in more detail and the characteristics of the local areas in terms of the opportunity structures that enable and inform the diffusion of these workplaces. We then layer this with other data sources from the ONS etc. In amalgamation this enables us to follow-up by using logistic regression to work out the likelihood of particular types of workplaces being present in specific neighbourhoods. This data can then inform a predictive tool to search for other similar localities where non-compliant workplaces are likely to be. We tested this out both empirically and predictively with hand car washes for the West Midlands and the basis of harder evidence on the East Midlands and secured an 80%+ match. 
Type Of Material Improvements to research infrastructure 
Year Produced 2020 
Provided To Others? Yes  
Impact We have been able to demonstrate the limitations of solely intelligence led approaches used by regulators. We have too provided HRMC, Programme Challenger ROCU in Manchester and the GLAA north-east with more accurate data to inform their local operations and identify workplaces of concern where vulnerable workers are likely to be exploited. Our work in this area has informed the ODLME strategy document for 2020-21 which due to the on-going pandemic has not yet been published. 
 
Title Data sets on the location of non-compliant workplaces with risk index 
Description We have comprehensive data sets and and associated risk index for workers at hand car washes, nail bars and small garment manufacturing workshops. Our hard empirical evidence of neighbourhood characteristics enables us to also build predictive maps that indicate the likely location of at risk workplaces 
Type Of Material Database/Collection of data 
Year Produced 2022 
Provided To Others? No  
Impact Whilst we do not share the data sets our methodology informs our engagement and the advice we provide to end users such as ODLME/BEIS, GLAA, HMRC and the NCA. The ODLME and NCA have commissioned research from us as a result of their confidence in our methods developed in this project 
 
Description Licensing evaluation collaboration with the GLAA and the RCWS 
Organisation Gangmasters Labour Abuse Authority
Country United Kingdom 
Sector Public 
PI Contribution The Home Office and the GLAA want to evaluate licensing schemes operated by local authorities in the regulation of informal hand car washes - we are going to evaluate schemes in four local authority areas in relation to attempts to regulate via the Responsible Car Wash Scheme which the GLAA and Home Office endorse.
Collaborator Contribution The GLAA and the RCWS have provided some data to enable us to work with car washes in the evaluation local authorities
Impact There will be a report in due course - this project started in the second week of February and may be delayed in some of its aspects due to the current closure of many hand car washes. We will continue the project via virtual fieldwork on Google Streetview and commence physical fieldwork in due course.
Start Year 2021
 
Description Presentations at MIRS (Manchester Industrial Relations Society) Confidential briefings to the Office of the Director of Labour Market Enforcement, the GLAA, various ROCUs, the TUC and trade unions and the Responsible Car Wash Scheme and the Car Wash Association 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact To secure research access, demonstrate our research credentials inform public policy of labour market non-compliance and improve practitioners and stakeholder approaches
Year(s) Of Engagement Activity 2019,2020,2021