The United States is currently investigating child labour in Latin America because it is quite rightly concerned about the violation of human rights, particularly the rights of children. The department currently has over 600 child labour investigations underway and continues to field complaints and initiate investigations in this area.
Child labour is a widespread problem in many countries, particularly in developing nations. It involves children being forced to work in dangerous and exploitative conditions, often for very low pay. This is a violation of their rights, as they are not able to access education or enjoy a childhood free from exploitation.
The United States is particularly concerned about child labour in Latin America because many of the products that the U.S. imports, such as coffee, cocoa, and textiles, are produced in this region. Some of these industries have been linked to child labour practices. Therefore, the U.S. has a responsibility to ensure that the products it imports are not produced using child labour, hence the U.S. child labour investigation.
The U.S. Department of Labor has a program called the “List of Goods Produced by Child Labor or Forced Labor” which identifies products that are produced using child labour or forced labour. This program is used to encourage companies to take steps to eliminate child labour from their supply chains. The U.S. government is also working with foreign governments, non-governmental organizations, and companies to address the issue of child labour in supply chains.
What does the U.S. child labour investigation mean for companies?
The United States government ramping up its efforts to investigate and eliminate child labour in Latin America is a move that is likely to have significant implications for companies that do business in the region. Companies that import products from Latin America, such as coffee, cocoa, and textiles, will need to take steps to ensure that their supply chains are free from child labour if they want to continue doing business with the U.S.
While the U.S. government’s “List of Goods Produced by Child Labor or Forced Labor” mean that companies that import these products are required to disclose the steps they are taking to eliminate child labor from their supply chains, the U.S. government’s latest efforts go beyond just identifying products that are produced using child labour.
The U.S. is now investigating companies that operate in Latin America to determine whether they are knowingly or unknowingly using child labour in their supply chains. This means that companies could face significant legal and financial consequences if they are found to be using child labour.
The U.S. child labour investigation means supply chain due diligence is more crucial than ever
Companies that do business in Latin America will need to take steps to ensure that their supply chains are free from child labour if they want to avoid legal and financial consequences. This will require a significant investment of time and resources. Companies will need to conduct thorough due diligence on their suppliers and monitor their supply chains to ensure that they are free from child labour.
But eliminating child labour from supply chains is not just a matter of avoiding legal and financial consequences. It is also the right thing to do. Child labour is a violation of human rights, and it has a devastating impact on children and their families. By eliminating child labour from their supply chains, companies can help to ensure that children are able to access education and enjoy a childhood free from exploitation.
Real-time monitoring of supply chains
At Permutable, we deploy our AI technology to facilitate real-time monitoring of supply chains which can be a powerful tool in the fight against child labuor. By using technology to track local incidents as they are discovered in real time, companies can quickly identify potential instances of child labour and take action to prevent it.
Here are some ways in which real-time monitoring of supply chains can help to stop child labour:
Identifying high-risk areas
Real-time monitoring can help companies identify which areas of their supply chain are most at risk of child labour. For example, if a company imports cocoa from a particular region where child labour is known to be prevalent, it can use real-time monitoring to keep a closer eye on that part of their supply chain.
Monitoring suppliers
Real-time monitoring can help companies to monitor their suppliers more closely. Companies can use technology to track any incidents which signify that goods are not being produced in ethical and safe conditions.
Checking compliance
Real-time monitoring can be used to check compliance with labour laws and regulations. By using incident tracking, it is possible to monitor the working conditions of employees and ensure that they are being treated fairly.
Collecting data
Real-time monitoring can help companies collect data on their supply chains, including information on labor practices. This data can be used to identify patterns and trends in child labour and take action to prevent it.
Taking action
Real-time monitoring can enable companies to take swift action if child labour is detected. For example, if a company identifies a supplier that is using child labor, they can immediately stop doing business with that supplier and take steps to address the issue.
Examples of U.S. companies who have previously fallen foul in this area
There have been several instances of U.S. companies getting into trouble for using child labor in Latin America over the past decade. Here are a few examples:
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J&J Snack Foods: In 2019, J&J Snack Foods was fined by the U.S. Department of Labor for using child labour in its supply chain in Mexico. The company was found to have violated the Fair Labor Standards Act by employing minors in hazardous working conditions.
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The Hershey Company: In 2012, The Hershey Company was accused of using child labour in its cocoa supply chain in Mexico. The company launched an investigation and subsequently terminated its relationship with the supplier in question.
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Cargill: In 2018, Cargill was sued by a human rights organization for allegedly benefiting from forced child labour in its cocoa supply chain in Colombia. The lawsuit accused Cargill of knowingly benefiting from the labor of children who were subjected to physical, emotional, and sexual abuse.
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Nestle: As mentioned earlier, Nestle has faced multiple allegations of child labour in its cocoa supply chain in West Africa. However, the company has also been accused of using child labour in its coffee supply chain in Guatemala. See our Nestle ESG report here.
Summing up
The United States investigation into child labour in Latin America is a significant development that will have important implications for companies that do business in the region. Companies will need to take steps to ensure that their supply chains are free from child labour if they want to avoid legal and financial consequences, and to do the right thing by children and their families.
Real-time monitoring of supply chains can be an effective way to stop child labour. By using technology to track products as they move through the supply chain, companies can identify potential instances of child labour and take action to prevent it. By taking a proactive approach to monitoring their supply chains, companies can help to ensure that their products are produced ethically and without exploitation.