News

New Maplecroft report highlights labour risks in the US including rights for migrant and unskilled labourers and child labour

11/11/2010

A new Maplecroft Labour Standards Report covering USA highlights areas of labour risk that will require enhanced vigilance on the part of companies with operations or supply chains in the country. This will become all the more relevant as the UN’s Special Representative on Human Rights reports on guidance to businesses on respecting human rights within their sphere of influence.

The report notes that restrictions on the freedom of association and child labour in the agricultural sector, human trafficking for the purposes of forced labour and discrimination in the workplace represent specific risks to business.  Migrant workers, at the margins of formal employment, also face exploitation in some settings and there has been a rise in workplace discrimination litigation – especially related to religious beliefs.

In the aftermath of the Congressional elections in November that resulted in the Republican Party winning a majority in the House of Representatives and gaining seats in the Senate, pending legislation designed to supplement labour protections is also now in limbo. This puts the onus on business to exercise due diligence in high risk areas.

Localised labour rights and protection risk profile

The US is a market-orientated economy, in which companies are able to operate with freedom and flexibility when making decisions relating to labour. The report points out technological developments, which have contributed to a two-tier labour market that can represent a risk to companies hiring unskilled labour. Unskilled workers have been adversely affected by the loss of trade union influence, whose role was much more prevalent when basic labour legislation was first enacted.

The Federal Labor Standards Act (FLSA) does not regulate employee rights to holidays, severance or sick pay; or rest periods; premium pay for weekend or holiday work; or other fringe benefits. These are either covered by agreements between the employer and employee or by state legislation. As a result legal protections and standards vary though out the country, as does the array of benefits provided to workers in variety of categories. 

The Labour Standards Report on USA offers in-depth analysis for all major labour issues, country scores, maps, key recent events and stakeholder viewpoints, as well as details on compensation and wider working conditions.

For more information or to purchase the report contact Maplecroft on +44 (0)1225 420000 or email info@maplecroft.com

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