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Tag: Labor laws

  • Child labor violations on the rise, problem could get worse: report

    Child labor violations on the rise, problem could get worse: report

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    (NewsNation) — Child labor violations are increasing, and over two dozen states have made moves that are exacerbating the issue, a recent report by Governing for Impact, the Economic Policy Institute and Child Labor Coalition says. 

    “Many assume that children working long hours in dangerous jobs is a thing of the distant past in the United States,” the report’s authors said. “Unfortunately, they’re wrong.”

    Injury rates almost doubled among workers under 18 between 2011 and 2020, the report said.

    The Fair Labor Standard Act, passed by Congress in 1938, authorized some restrictions on child labor. Still, the report says, in recent years there have been “noted increases” in child labor violations, workplace injuries and chronic absenteeism from school. 

    In FY 2023, the Department of Labor concluded 955 investigations and reported that it found a 14% increase in violations from the previous year. Nearly 5,800 children were working in ways that didn’t follow the laws, and the department assessed more than $8 million in penalties, an 83% increase from FY 2022.

    Organizations, in their report, detailed the stories of a 16-year-old boy who was killed while deep cleaning a piece of machinery in the deboning area of a Mississippi chicken processing plant. Proper supervision and precautions failed him, the report said.

    Another teen near Orlando, Florida, died at the construction site of a two-story house in 2019 when he fell from a height of 8 feet off a step ladder while holding a 24-foot flooring joist. The joist fell on the boy’s chest and killed him, the report said.

    A number of factors can lead to youth getting hurt on the job, including which occupation they’re employed in, the report said. Agriculture is an industry where the risks to child workers are the highest and regulations are the weakest, for example, according to the report.

    “Instead of addressing the troubling increase in workplace injuries among children, industry-aligned groups like those behind Project 2025 have actually proposed to change federal regulations to let more young people work in more dangerous jobs,” the report said.

    Project 2025 is a nearly 1,000-page handbook from conservative think tank The Heritage Foundation, as well as other organizations, that serves as a guide for what they want done under a Republican presidential administration.

    While Republican presidential nominee Donald Trump has distanced himself from Project 2025, dozens of people who worked closely with him during his time in the White House are involved in it, a fact Democratic nominee Kamala Harris’ campaign has pointed out. 

    Authors of Project 2025  wrote that some young adults “show an interest in inherently dangerous jobs.”

    “Current rules forbid many young people, even if their family is running the business, from working in such jobs. This results in worker shortages in dangerous fields and often discourages otherwise interested young workers from trying the more dangerous job,” Project 2025 authors said. “With parental consent and proper training, certain young adults should be allowed to learn and work in more dangerous occupations. This would give a green light to training programs and build skills in teenagers who may want to work in these fields.”

    Along with those in the industry pushing for less child labor protections, legislators in more than 30 states have taken steps to weaken them since 2021, Governing for Impact, the Economic Policy Institute and Child Labor Coalition wrote in their report.

    “Citing labor shortages and under pressure from industry groups, these states have taken steps to: allow children under 18 — often much younger — to work in dangerous occupations, limit employer liability when their child workers are injured, and let employers schedule children for overnight shifts,” the report said.

    What can be done to prevent child labor violations?

    Since 2021, the Department of Labor has “ramped up enforcement” of current federal regulations and given employers who have committed “some of the worst abuses” the maximum penalties, the report notes. However, “the regulations themselves are out of date and insufficient.” the report said. 

    “Even with full-throated enforcement of these regulations, it’s not enough to sort of protect kids from what’s going on now in the economy,” Reed Shaw, policy counsel at Governing for Impact and co-author of the report, told The Guardian. 

    Report authors had some suggestions for changes the department can make. These include expanding the list of occupations deemed too hazardous for workers under 18 years old; increasing protections for child workers in hazardous agricultural jobs; and issuing regulations prohibiting employers from scheduling certain child workers for overnight shifts, as well as requiring rest breaks and one-day off a week for others.

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    Cassie Buchman

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  • TikTok Worries Over Labor Rights, Leaked Memo Reveals | Entrepreneur

    TikTok Worries Over Labor Rights, Leaked Memo Reveals | Entrepreneur

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    In a landmark ruling last month, a Kenyan court declared that Meta was the “true employer” of hundreds of moderators working in Nairobi, Kenya — meaning that Meta can be held liable in Kenya for labor rights violations, even though the moderators are technically employed by a third-party contractor. Meta will appeal the decision, TechCrunch reported.

    Moderators are responsible for filtering out violent, hateful and shocking content on Meta’s platforms.

    Meta previously contracted with a company called Sama, and it now contracts with a company called Majorel. TikTok, the short-form video app, also outsources to moderators in Kenya with Majorel, and leaked memos may imply the company has violated labor rights.

    The initial case against Meta was brought forward by Daniel Motaung, a South African moderator who says he was fired in 2019 after attempting to form a union. Motaung claimed that the job exposed him to traumatic and disturbing content, resulting in post-traumatic stress disorder. He was allegedly paid as little as $2.20 an hour for the work, WIRED reported in February.

    Motaung also claimed that the true nature of the work was never explicitly laid out to him before taking on the role that would ultimately leave him traumatized.

    As Motaung’s case progressed, in January Meta attempted to sever ties with Sama (resulting in 260 moderators losing their jobs) and move its operations to another third-party company, Majorel (TikTok’s partner), per WIRED.

    After 184 moderators sued Meta and Sama alleging unlawful termination of contracts, the court ruled in favor of the moderators in March, extending their contracts and preventing layoffs until the case is resolved. The court found that Meta was the primary employer, and Sama was “merely an agent” overseeing the work on its behalf.

    The court also ordered Meta and Sama to provide medical, psychiatric and psychological care to the moderators, acknowledging the “inherently hazardous” nature of their work sifting through social media content to remove hate, misinformation and violence.

    Related: ‘It Is Incredibly Disheartening, Insulting, and Downright Evil’: Designers Accuse Shein of ‘Egregious’ Copyright Infringement and Racketeering

    As for TikTok, leaked documents obtained by the NGO Foxglove Legal and viewed by WIRED suggest that the company is concerned about the potential legal repercussions it might face if the Kenyan court’s decision sets a precedent.

    “TikTok will likely face reputational and regulatory risks for its contractual arrangement with Majorel in Kenya,” the memo says, adding that if the court rules in favor of the moderators, “TikTok and its competitors could face scrutiny for real or perceived labor rights violations.”

    In response to the situation, TikTok is contemplating an independent audit of Majorel’s operations in Kenya to address potential concerns regarding labor practices, according to the leaked documents.

    However, similar moves have been criticized for being performative and not leading to substantial improvements in workers’ conditions, Paul Barrett, deputy director of the Center for Business and Human Rights at New York University, told WIRED — a reality TikTok appears to be aware of as the memo stated such audits “may mitigate additional scrutiny from union representatives and news media.”

    Although TikTok has the opportunity to proactively approach the issue, some experts caution the company might merely be trying to mitigate blame rather than genuinely improve working conditions for its outsourced workers.

    “I think it would be very unfortunate if TikTok said, ‘We’re going to try to minimize liability, minimize our responsibility, and not only outsource this work, but outsource our responsibility for making sure the work that’s being done on behalf of our platform is done in an appropriate and humane way,’” Barrett told WIRED.

    Entrepreneur has reached out to TikTok and Meta for comment.

    Related: 3 McDonald’s Franchisees to Pay Thousands in Fines for Child Labor Law Violations

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    Madeline Garfinkle

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  • The Shortage of Tech Workers Can Be Solved By Hiring From This Region | Entrepreneur

    The Shortage of Tech Workers Can Be Solved By Hiring From This Region | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A peak in the tech job market is coming. The migration and technological adoption that almost all the US industrial sectors undertook due to the pandemic has overstretched the available STEM talent pool in the United States. Tech workers’ wages have skyrocketed for some time due to the labor shortage.

    A close, competitive, and viable ally

    Reports and articles abound confirming growth in demand for STEM jobs linked to the industrial digitization goals of US companies. According to the U.S. Bureau of Labor Statistics, occupations such as Data Scientists, Information Security Analysts, Statisticians, or Web Developers are among the five fastest-growing jobs for the next decade (2021-2031). But domestic talent is not sufficiently available, and employing foreign workers can generate a significant administrative burden for companies. So, hiring engineers and data scientists based in Latin America can be a much simpler, more viable and more profitable alternative than importing talent from other parts of the world.

    First, the geographical factor is important since Latin American countries have time zones similar to the US, which can improve the coordination of work teams. Also, Latino engineers who graduated from regional STEM faculties are of top-notch quality. According to the 2022 QS World University Ranking list, the University of Chile, the Pontificia Universidad Católica de Chile, the UNAM in Mexico, and the University of São Paulo in Brazil are all producing high-caliber talent.

    Although there is no accurate census, according to data consulted from Brazil, Mexico, Chile, Argentina, and Colombia, an estimated 165,000 to 220,000 engineers graduate annually from these universities.

    Related: Why Entrepreneurs Are Looking Towards Latin America for Nearshoring Opportunities

    How to access that talent?

    The impact of COVID-19 in all industrial sectors revealed opportunities in the labor dynamics of which teleworking is here to stay—85% of IT divisions consulted by Deloitte plan to be hybrid or fully remote. However, 82% of US companies could not complete digital transformation projects in the past year due to a lack of resources and skills.

    The pandemic positively impacted the modernization of remote contracting and payroll administration platforms. Although there are specificities for different countries, there are generally three viable options for hiring remote talent: As an independent contractor, through a local employer (EOR), or via opening a company subsidiary in a specific country.

    Some platforms specialized in accelerating these processes are strategically located in Mexico, Brazil, Argentina, or Peru, such as Skills.tech, Revel or Baires. Those companies and others offer candidate filtering services, skills verification, team management, recruitment laboratories and continued talent education, among other features.

    Related: 4 Tips for Hiring Employees No Matter Where They’re Located

    Two potential drawbacks

    Firstly, companies seeking to outsource talent (of any kind) should include Diversity, Equity, and Inclusion (DEI) policies in their work culture. This concept is critical because Latino workers might quickly leave their employers if they do not feel represented or included. This often happens regardless of the team they work with or the professional challenges they face.

    Another factor to consider is language. Latin America is not particularly known for having the best English literacy in the world. According to the English Proficiency Index de EF (EPI), only Argentina is listed as having at least a “high” English proficiency among Latin American countries.

    The good news is that there is a direct correlation between work experience and the level of English. Better yet, the same EPI recognizes that, as a result of the pandemic, English in Latin America seems to have improved exponentially compared to the rest of the world. The scores show an increase of 16 points compared to the average increase of 3 points for the rest of the world.

    Related: Interested in Starting a Business Overseas? Keep These 5 Things in Mind

    Conclusion

    Having the most qualified people is key to competitiveness and growth for most businesses. Hence, US companies have been competing to attract and retain IT professionals. The current demand and shortage of professionals pose a unique and timely opportunity for Latin America, and several startups are starting to capitalize on this opportunity.

    While directly hiring foreign workers is an option for some companies, leveraging remote talent via service providers can present a simpler and more profitable alternative. The time zones of the USA are similar to those of Latin American countries, and the population of engineers is motivated and well-educated.

    With special attention to remote and DEI policies, Latin American talent can provide an unparalleled competitive advantage for US companies seeking tech workers.

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    Roland Polzin

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  • Why The Demand for Tech Jobs Will Only Get Stronger

    Why The Demand for Tech Jobs Will Only Get Stronger

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    Opinions expressed by Entrepreneur contributors are their own.

    In the world of big tech, there have been many hiring freezes and recent layoffs. Many worry that layoffs in this realm signify an impending national economic crisis. Yet, there is hope for tech workers and jobs outside traditional tech giants. Companies outside of big tech are scooping up tech talent to develop their tech infrastructures.

    All in all, don’t expect a slowdown in Information Technology (IT). What you should expect is a redistribution.

    Related: Why The Consumer Tech World Is Too Focused on Electronics

    Current layoffs and “cooling off” in IT hiring are a drop in the bucket amid a global shortage of IT talent

    Three major jobs in the ICT industry are a software developer or engineer, user support specialist and systems analyst. Other positions include project managers, systems engineers, systems administrators and network engineers. High-profile tech layoffs and hiring freezes are masking the job growth and demand that remains in the job market. Many companies outside of the tech sector are hiring tech workers for their digital transformation processes. As a result, the growth rate outside big tech firms is minimally affected.

    Some tech firms’ layoffs, such as those at Stripe and Meta, result from over-hiring. This happened as part of the tech boom that emerged during the COVID pandemic in 2020 and has less to do with the state of our economy. Raising capital is increasingly difficult as these tech firms’ public market valuations decrease. Therefore, they’re switching from a hyper-growth mode to an efficient growth mode.

    Globally, there has been a shortage of tech workers for a while. Management consulting firm Korn Ferry predicts we’ll be short over 85 million tech workers globally by 2030. That’s $8.5 trillion in lost annual revenue. Since technology is rapidly becoming a fundamental element in every operation within any company, there will always be a shortage of highly skilled tech workers, no matter how many companies hire and pay more.

    Related: What the Future Looks Like for Fresh Graduates in the Tech Industry

    Fundamental demand for IT continues to grow

    There is too much work worldwide to build new digital products, rebuild old systems, take advantage of cloud tech and automate human-dependent processes.

    Tech job postings are higher by 25% this year as aerospace, finance and healthcare companies are vying to hire tech talent. And since 2020, tech talents worldwide have been finding work in Canada, specifically in Toronto and Vancouver. One reason for this could be the Trump administration’s tricky immigration policy. Why jump through hoops to work in the US when neighboring Canada has looser guidelines and available work?

    Canada’s tech job growth rate has been outpacing that of the United States. This continues even as cities such as Seattle and San Francisco have tech giants hiring masses of workers.

    Layoffs and freezes will unevenly affect different sectors

    While big tech firms will slow down, other industries (e.g., travel and healthcare) will take advantage, meaning more resources will come in.

    Every laid-off tech worker has a job waiting for them in the United States or elsewhere. Remote work, burgeoning since 2020, has extended the job market and made it possible for people to work anywhere.

    Frankly, some bloodletting is healthy

    Compensation and perks in big tech and Silicon Valley have reached crazy levels. Many believe that the Valley is losing its unique aura. Silicon Valley talent may not be a good fit for “Main Street” and may have little interest in working in such an environment. They will have to adjust, leading to a healthier, adaptable and sustainable tech workforce in the long term. Silicon Valley and New York City, traditional major tech hubs, are cooling down and cutting costs. However, states like Pennsylvania, Arizona, Texas and Florida are seeing tech industry job growth.

    It’s also important to keep the Eastern European IT picture in mind. What is happening now is that Eastern Europe, which was traditionally considered to be the main competitor, is in turmoil because of the war in Ukraine. Although still working and available, Russia and Belarus are no longer in the picture, and Ukraine is a high risk. Poland, Romania, Serbia and Portugal are becoming more expensive because of war and the reduced talent market. This is helping India, always a big IT outsourcing hub, benefit.

    Conclusion

    Labor market conditions are only getting better. Tech is the backbone of every company, whether in consulting, healthcare or aerospace. Displaced big tech workers will turn to companies in other sectors where they’ll still be paid well and expected to work similar jobs. IT jobs were hot and still are because of the law of supply and demand.

    Every company wants to hire the best tech talent. However, there’s only so much talent to choose from. It can get pretty competitive when another company can lure away the tech workers that one company has been eyeing. Let the tech talent wars continue.

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    Dmitry Bagrov

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  • Investigation reveals child labor in Hyundai-Kia supply chain in Alabama

    Investigation reveals child labor in Hyundai-Kia supply chain in Alabama

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    Opinions expressed by Entrepreneur contributors are their own.

    According to an exclusive report from Reuters, four key Alabama suppliers for Hyundai Motor and Kia Corp. have been using child labor.


    Bloomberg | Getty Images

    The companies deny they hired minors, but Reuters reports this is not the first time these Alabama-based suppliers have been investigated regarding child labor practices.

    Citing sources who’d worked for parts manufacturer Ajin Industrial Co., Reuters said the company employed as many as 10 minors at one Cusseta, Alabama, factory alone. Additionally, Hyundai supplier SL Alabama reportedly regularly violated child labor laws by using minors, some as young as 13. Reuters notes there have been past reports about SL Alabama, but the allegations regarding Hwashin and Ajin are new. This suggests that the issue is more significant than child welfare agencies were aware of and hasn’t been adequately addressed.

    According to employees, minors as young as 16 have worked in Alabama factories for Hyundai’s suppliers, welding and even operating forklifts. However, Alabama and the United States prohibit children under the age of 16 from working in automobile plants and those under 18 are not supposed to work in potentially dangerous areas.

    Hyundai and Kia have implemented policies prohibiting child labor at their plants and those of their suppliers. Previous child labor allegations prompted Hyundai’s chief operating officer to say the company would immediately end business with SL and investigate all of its Alabama operations, potentially ending work with outside employment agencies. The company later walked this back, only indicating it would sever ties with sketchier staffing outfits.

    Labor experts believe pressure placed on suppliers by Hyundai and Kia to meet deadlines and avoid late delivery penalties may have factored into using shortcuts like child labor. Delays in delivering parts can be costly. Additionally, the COVID-19 pandemic’s impact on supply chains may have played a role in the proliferation of violations.

    Terri Gerstein, who directs the state and local enforcement project at Harvard Law School’s Labor and Worklife Program, agrees that COVID played a role, telling Reuters, “It seems like the stage was set for this to happen…Plants in remote, rural areas. A region with low union density. Not enough regulatory enforcement. Use of staffing agencies.”

    SL Alabama, according to Reuters, “is the only Hyundai or Kia supplier charged with violating child labor laws” to date. State and local officials discovered seven workers, ages 13 through 16, working there, and the Labor Department issued a $30,000 fine. Alabama’s Department of Labor also fined the company and a connected employment agency around $36,000.

    Child labor isn’t the only serious issue in play here. Reuters says there are also ongoing investigations into whether some children found working for Hyundai and Kia suppliers were victims of human trafficking.

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    Steve Huff

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