This article refers to the protection and observance of labor rights and the improvement of working conditions.
Forced and child labor is a global concern that affects many countries, including Mexico. In the case of companies involved in foreign trade and linked to supply chains, one of the crucial issues is the eradication of such practices, so for the purposes of certification as an Authorized Economic Operator (AEO), it is especially relevant, as it seeks to ensure the safety and integrity of the logistics chain.
In this regard, on August 1, 2022, the U.S. government's Customs-Trade Partnership Against Terrorism Trade Compliance (CTPAT) program announced the addition of six new program requirements regarding the prevention of forced labor within the supply chain, which became mandatory on August 1, 2023, among which is to have a social compliance program in this area.
In the case of Mexico and following the same line, on July 27 and August 3, 2023, the third resolution of modification to the General Rules of Foreign Trade for 2023 and its Annex 1, respectively, were published in the Official Gazette of the Federation (DOF), through which several modifications to the nine profiles related to the DEA certification were announced.
One of the main modifications is found in the section on Trading Partners (Standard 4), which requires companies submitting new applications, as well as those that already had the referred certification, to implement a policy and a social compliance program, in which it is guaranteed that the goods, inputs or national and imported goods to Mexico for the elaboration of its final product, are not extracted, produced or manufactured, totally or partially, with prohibited forms of labor, that is, forced or compulsory labor, including child labor.
This, in accordance with Article 23.6 of the T-MEC and the Agreement that establishes the goods whose importation is subject to regulation by the Ministry of Labor and Social Welfare and the Ministry of Economy and The Mexican Tax Administration Service (Servicio de Administración Tributaria), however, failed to provide details about the elements that such program must comply with, and the elements that such program must meet.
However, the Servicio de Administración Tributaria (Tax Administration Service) has failed to provide details about the elements that such program must comply with, therefore, this document is intended to provide a practical guide for the implementation and compliance with such requirements.
How to implement an adequate social compliance policy and program to prevent and/or eradicate child and/or forced labor in the supply chain?
In this context, companies certified as DEA or seeking certification have the responsibility to ensure that their operations and supply chains are free of any form of labor exploitation.
Therefore, the following are the steps to follow for the creation of a social compliance policy and program.
We suggest creating a policy aimed at the prevention and eradication of child and forced labor through the following steps:
* Consider national or international legislation, such as, the Political Constitution of the United Mexican States (CPEUM),the Federal Labor Law, the T-MEC, (article 23.6) and what is indicated by the International Labor Organization (017), among others.
Based on the above, create principles in accordance with the company, with the purpose of avoiding the practice of forced and child labor.
Establish a mission and vision that commits the company's efforts to prevent or eradicate forced and child labor in the short, medium and long term.
In order to clarify the legislation on the matter, it is convenient to point out that the Political Constitution of the United Mexican States (CPEUM), in its Article 5, states that no person may be prevented from engaging in the profession, industry, trade or work that suits him/her; in the case of the Federal Labor Law, through its Article 132, it states that employers are obliged to implement, in agreement with the workers, a protocol to eradicate forced and child labor.
"Companies certified as AEO or seeking certification have the responsibility to ensure that their operations and supply chains are free of any form of labor exploitation."
With regard to the T-MEC, Article 23.6 substantially states that the countries participating in the treaty recognize as an objective to eliminate all forms of forced or compulsory labor; that is, to prohibit the importation of goods into their territory from other sources produced partially or totally by forced labor, including child labor.
For its part, the International Labor Organization (ILO) states that child labor and forced labor are recurrent practices in the supply chain of large companies,
However, identifying them is already a major problem, due to the lack of resources allocated to find out where in the supply chain they are carried out.
In view of the above, it is of vital importance to generate a policy against forced labor that establishes mechanisms for prevention, detection and response to possible cases of labor exploitation.
Similarly, the policy against forced and child labor should establish mechanisms for prevention, detection and response to possible cases of labor exploitation. This includes training employees on how to identify and address forced labor, as well as the implementation of safe and accessible reporting systems for workers.
Regarding the implementation of a social compliance program on child and/or forced labor, it is suggested that the following recommendations be addressed:
Perform an analysis of their supply chain partners, considering the origin of their goods, whether imported or acquired in national territory, considering regions, suppliers and any other factor considered significant for purposes of labor violation practices, in order to ensure that the supply chain is free from the use of forced and child labor. The investigations carried out by the Ministry of Labor in coordination with the Ministry of Economy in this area should be considered.
Establish a letter of commitment with those business partners that represent the greatest risk of such practices, in which the policy of both parties to prevent and/or eradicate the use of forced and child labor is demonstrated and established.
Training for employees or collaborators on the identification of signs of forced and child labor. It is recommended to include the topic of reference as part of the Annual Training Program, which establishes Substandard 10.1 of the DEA certification standard.
Conduct periodic activities with employees, with the purpose of strengthening the project for the prevention and/or eradication of child and/or forced labor. e Annual review of its analysis to business partners.
"It is of vital importance to generate a policy against forced labor that establishes mechanisms for prevention, detection and response to possible cases of labor exploitation."
Ethics in the supply chain is increasingly relevant. Mexico has taken an important step by linking the Authorization of Registration in the Certification Scheme of Companies as Authorized Economic Operator with the commitment derived from Article 23.6 of the T-MEC. This is achieved by preventing the importation of goods into its territories, from other sources, produced in whole or in part by forced or compulsory labor, including compulsory child labor.
Undoubtedly, the requirement of the AEO program for the prevention and eradication of labor violation practices with respect to the procurement of goods demonstrates Mexico's commitment to improving its reputation and competitiveness in the international marketplace.