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<p>The Department has worked with its national contracting and logistics partner,
NHS Supply Chain to develop a range of ethical procurement interventions that increase
the scrutiny applied to suppliers, based on the risks presented.</p><p> </p><p>All
suppliers contracted by NHS Supply Chain are required to adhere to the <em>NHS Supply
Chain – Supplier Code of Conduct</em>. A copy of the Code of Conduct is attached.</p><p>
</p><p>This code of conduct includes requirements for suppliers to work in line with
the United Nations Universal Declaration of Human Rights and the International Labour
Organisation Declaration on Fundamental Principles and Rights at Work, and makes specific
reference to forced and compulsory labour. The Supplier Code of Conduct has been a
contractual requirement of all Framework Agreements since 2009.</p><p> </p><p>For
categories of products where the risk of labour standards abuses has been assessed
as high, by the nature of the manufacturing processes, employment practices or location,
NHS Supply Chain require all suppliers to implement a Labour Standards Assurance System
to specified standards.</p><p> </p><p>NHS Supply Chain continually review the wider
contract portfolio, and where appropriate, the Labour Standards Assurance System requirements
will be applied to new contract areas.</p><p> </p><p>Contract terms will require suppliers
to implement and improve their Labour Standards Assurance System, in line with stipulated
milestones, during the life of the framework agreement.</p><p> </p><p>Suppliers are
contractually required to evidence compliance by providing details of independent
third party audits conducted on their Assurance System.</p><p> </p><p>Where suppliers
do not meet the specified standard within the stipulated timescales, their contract
will be suspended in the first instance, and then terminated if remediation actions
are not undertaken in a suitably timely manner.</p><p> </p><p>NHS Supply Chain provides
support for suppliers required to implement a labour standards assurance system with
webinars that provide access to expert support and capability building material.</p><p>
</p><p>In relation to the British Medical Association (BMA) report <em>In Good Hands</em>,
all suppliers awarded on the current Framework Agreement for Examination and Sterile
Surgical Gloves are subject to the NHS Supply Chain Code of Conduct and contractual
requirements to operate a Labour Standards Assurance System.</p><p> </p><p>Since the
framework agreement launched in December 2015, a webinar workshop has been held with
all suppliers to explain the Labour Standards Assurance System and implications of
the Modern Slavery Act.</p><p> </p><p>Of the manufacturers named in the BMA report,
two are currently awarded under the NHS Supply Chain national framework agreement
for medical gloves.</p><p> </p><p>In both cases the Department in conjunction with
NHS Supply Chain has investigated the allegations thoroughly by working with specialist
independent third party audit bodies, who have undertaken assessments at the identified
facilities.</p><p> </p><p>Audit findings have not identified any specific cases of
slavery or human trafficking, or any serious systemic abuses of worker or human rights,
however, improvements in management procedures, communications and training were recommended
to reduce the potential for abuses to arise.</p><p> </p><p>Both suppliers have acknowledged
these findings and have agreed actions, as part of contractual remediation plans,
to address these.</p>
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