Multinational Corporations Using Child Labour

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Child Labour
Miras International School
Human Rights Youth Forum
Chair: Amy Humphreys (Superstaramy0813_14@yahoo.com)
Vice Chair: Juliette Guiot (cluckmaster@gmail.com)
Human Rights
Youth Forum
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Amy Humphreys & Juliette Guiot
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Contents
Page 3
Background on Child Labour
Page 5
Nike
Page 5
Apple
Page 6
Disney
Page 7
Multinational Corporations using Child Labour
Page 8
Measures Taken against Child Labour
Page 9
Bibliography
Page 10
Guiding Questions
Human Rights
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Background on Worldwide Child Labour
According to UNICEF, child labour is defined as “work that exceeds a minimum number of hours
depending on the age of the child and the type of work. Such work is considered harmful to the child
and should therefore be eliminated.”1, most countries classify a child to be under the age of 18 and
many MEDCs (more economically developed countries) make education compulsory until the age of
sixteen.
Child labour is most commonly found in LEDC (less economically developed countries) due to the
following factors
o Poverty – as families use children to compliment the household revenues
o Education is often inaccessible or is undervalued within different societies; particularly
concerning girls
o Globalisation – children represent a cheap and flexible workforce which is appealing to
employers and families with low income. Children are also valued for their vulnerability which
makes them easy to control and manipulate
o Parent illiteracy and social apathy
o Exploitation of cheap and unorganised labour
To school students around the globe, child labour is thought of being something of the past, an evil
that has been vanquished. What few know, however, is that, 1 out of 7 children aged 7 to 14 are
child workers. The highest use of child labourers is in Sub-Saharan Africa where 69 million children,
which is 1 in every 3, are used in labour; for example, 63% of children in Mali and 47% of children in
Burkina Faso toil to receive under a dollar a day. Children are often used in the workforce because
they are nimble and agile, and work for extremely low wages, however the amount of work-related
deaths is phenomenal; for example it is estimated that 22,000 children die each year from work
related accidents2.
However, on the other hand, social scientists believe that child labour may have its benefits as it
gives children a sense of responsibility and accustoms them to the harsh working life they will
experience as adult, alongside bringing in small amounts of money for their family. Children are not
always exploited during child labour, for example, working within the family business. This helps
profit remain within the family and allows children to develop a sense of responsibility. An example
of such positive child labour is helping within a family restaurant. Child labour is not necessarily
negative on the basis that children can study as well as work. In this case, children help the world’s
economy as well as allowing their family to get out of the state of poverty. Children who work from a
young age gain experience which is valuable when working fulltime in the future. Being too rash and
preventing child labour can cause negative side effects, such as taking away a family’s income. An
example of this can be found in Duncan Green’s speech: “Following threats by the US Congress to
pass legislation preventing the import of products from Bangladesh made by children under 14,
1
Child Labour. 6 March 2008. <http://www.unicef.org/protection/index_childlabour.html>
What Is Child Labour?. 29 May 2009. <http://www.worksite.actu.asn.au/fact-sheets/what-is---childlabour.aspx>
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garment factory owners fired an estimated 50,000 children, mainly girls, who were forced to
exchange their jobs in relatively clean, hygienic textile factories for lower paid jobs breaking bricks or
collecting garbage. Some turned to prostitution.”3
Here are some statistics which state the percentage of children attending full-time education in a
particular country. The other percentage states what percentage of children work within the
manufacturing field.
Country
Turkey
Bangladesh
El Salvador
India
Mexico
Portugal
Honduras
Guatemala
Ecuador
Morocco
Venezuela
Angola
Brazil
Costa Rica
Chile
Ghana
Cambodia
Nicaragua
Philippines
Bolivia
Paraguay
Belize
Peru
Panama
Cameroon
Kenya
Ethiopia
Nepal
Uganda
Madagascar
Yemen
Burkina Faso
% of Children in School
91.5
86.1
87.7
77
92.2
99.4
85.8
74.7
91.2
71.6
94.4
71.2
97.2
94.8
99.2
81.8
80.1
83.2
95.1
95
93.6
94.8
94.2
94.2
81.9
74.4
43.7
72.6
92.5
86.8
60.3
29.3
3
Manufacturing %
15.9
12.7
12.5
12.5
11.9
11.2
10.8
10.7
9.9
8.3
8.1
7.4
7.4
7.2
6.9
5.9
5
4.9
4.3
4
4
3.8
3
2.5
2.1
1.5
1.4
1.4
1.4
1
1
0.5
Green, Duncan. Child Workers of the Americas. January 1999. NACLA Report on the Americas, New York,
U.S.A.
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Multinational Corporations Using Child Labour
In an era of globalisation it is in the best interest of multinational corporations to maximise profit, in
order to be more competitive and therefore successful. One of the ways for MNCs to accomplish this
is to move into an LEDC (less economically developed country) and procure cheap labour. As
children usually require less pay, they are therefore more profitable. This is part of the reason as to
why children are employed by multinational companies and their suppliers.
Nike TM
Vietnam is just one country in which Nike bases their manufacturing facilities. Many girls are found
working in Nike factories seven days a week, and at least fourteen hours a day. In one Vietnamese
factory, girls are required to make eleven pairs of shoes within a day, and they earn (US$) 20¢ an
hour. If they work overtime, they’re not paid. This puts large pressure on the children, and yet they
don’t even receive $20 a week. The working conditions are also terrible: the children work in dark,
hot rooms, and the poorly ventilated environment frequently smells of glue.
Nike, however, has taken an hypocritical stance, especially when in contact with the media. Nike’s
CEO, Philip Knight, has declared to the press: “I think that’s always been true, that basically we have
not had a problem with child labour. It has been somewhat of a problem in the apparel industry, but
it hasn’t been a problem at Nike factories.”
When comparing a child paid 20c an hour, and the average price of Nike trainers, $150, one must be
led to ponder exactly how much money goes towards the producers, and how much to the
shareholders. Basketball player, Michael Jordan, was paid $20 million to wear Nike’s Air Jordan
sneakers. Ironically, Jordan got paid millions more than the workers themselves. When Jordan was
questioned on child labour, he stated “I don’t know the complete situation. Why Should I? I’m trying
to do my job. Hopefully, Nike will do the right thing, whatever that might be.”
A more extensive report about Nike’s activities in Vietnam can be found here:
http://www.viet.net/~nike/reports/report1.html
Apple TM
Recently, Apple has been scrutinised for its revealed use of child labour. In a published report
identifying the instances of child labour in the manufacturing facilities of its suppliers. The location of
these factories is unknown, but it is suspected to be in China.
Unlike Nike, Apple has been showing a remarkable amount of corporate responsibility, first by
publishing these issues and secondly by stating in its annual supplier report that “in each of the
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three facilities, we required a review of all employment recorders for the year as well as complete
analysis of hiring process to clarify how underage people have been able to gain employment”4.
Apple has taken action against child labour, stating in the child labour report that the company had
“discovered three facilities that had previously hired 15-year-old workers in countries where the
minimum age for employment is 16. Across the three facilities, our auditors found records of 11
workers who had been hired prior to reaching the legal age, although the workers were no longer
underage or no longer in active employment at the time of our audit.”5
Disney TM
Disney, a brand which typically promoted as child friendly, astonishingly uses children to
manufacture stuffed toys, clothes, and McDonalds TM Happy Meal figurines representing Disney
characters. For many years, Disney has been an active supporter of UNICEF, which has firm rules and
regulations against child labour, however Disney continues to secretly use child labour whilst being
fully aware of possible consequences.
Disney’s Code Of Conduct states that “manufacturers will not use child labour”6. Yet ironically,
Disney does. It continues to state that “manufacturers will provide employees with a safe and
healthy workplace”7, while many manufacturing facilities expose their employees to acetone, “a
chemical solvent used to make and paint plastic toys, which can cause dizziness, unconsciousness,
damage to the liver and kidneys, nose, throat and skin irritation.”8 Workers have complained about
these unsafe working conditions but all appeals from local human and labour right groups continue
to be rejected by the management which refuses to improve the ventilation system in the factory or
remedy other unsafe working conditions. Additionally, the employees have no health insurance
coverage and receive no compensation for injury or sickness.
In 2005, Meghan Madura reported that the children “are forced to work in vile conditions,
diminishing their basic rights and exploiting their innocence. While providing cheap labour, the
children are defenceless against bullying, beatings, and sexual abuse … the factory conditions are
hazardous to their health. There is no ventilation and the use of unsanitary bathrooms is only
allowed twice a day. Children are forced to work thirteen to fifteen hour days that can last up to
twenty-two hours with only three days off in nine months.”9
4
Apple Admits Using Child Labour. 27 Feb 2010.
<http://www.telegraph.co.uk/technology/apple/7330986/Apple-admits-using-child-labour.html>
5
Apple Supplier Audit. 2010.
<http://images.apple.com/supplierresponsiblity/pdf/SR_2010_Progress_Report.pdf>
6
Disney- Code of Conduct for Manufacturers. 1996.
<http://corporate.disney.go.com/responsibility/codeofconduct.html>
7
Ibid.
8
Disney – the Kingdom of Child Labour Violations. <http://www.anomalies-unlimited.com/Disney/Labor.html>
9
Walt Disney and Child Slave Labour. <http://ihscslnews.org/view_article.php?id=70>
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Other Companies Using Child Labour
Here are some other multinational corporations which have either been suspected or prosecuted
using child labour. You may research for discussion.













GAP
Old Navy
Levi Strauss
Mattel (Barbie)
Speedo
Coca Cola
Nestle
Chevron
Firestone
Pizza Hut (namely in the
USA)
Target
Sam’s Club
Subway










Banana Republic
Tommy Hilfiger
Ralph Lauren
Wal-Mart
Nokia
McDonald’s
Adidas
Hanes
Cadbury’s Chocolate (aiming to end labour by April 2010)
Primark Clothing



Lowes
Taco Bell
Chuck. E. Cheese
For reference of the above listed, see footnote.10
10
What Companies Use Child Labour? March 2010.
<http://answers.yahoo.com/question/index?qid=20100317073048AASoQBc>
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Measures Taken Against Child Labour
According to the ETI (Ethical Trading Initiative), if an MNC discovers that a supplier uses child labour,
this MNC should: ensure the gradual transition of child workers from their job to a school, and
work with the supplier to end this infraction to the human rights declaration. If child labour
continues to be used by the supplier, the company should terminate their business with them.
Many companies which have been discovered using child labour have destroyed (in the case of Gap)
or taken off the shelves the incriminated products. While this makes a powerful statement, the
utility of these actions is rather unclear. One thing is sure: child labour is negative advertisement for
any multinational corporation, and any press coverage thereof will be accompanied by strict
decisions on the company’s part.
Many countries support local organisations working to suppress child labour. An example of this is
the VLW, the Vietnam Labour Watch, which was created to monitor Nike activities in Vietnam.
Some countries have signed up with UNICEF or the ILO, which each have their own regulations
against child labour. Countries signed up with such organisations are expected to follow the rules or
face possible expulsion for the organisation. Many countries also have NGOs (non-government
organisations) setting rules on child labour. If a company supports these, they are also expected to
follow the rules. Therefore, the consequences faced by a company which has not been obeying is
often hard to come by.
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Bibliography
Listed below are sites that we have used to create this report, along with some other sites that may
have some valuable information for your further research.
Save The Children. Accessed: 23 February 2010.
<http://www.savethechilden.net/vietnam>
Nike Shoes and Child Labour in Pakistan. Accessed: 23 February 2010.
<http://www1.american.edy/TED/nike.htm>
Nike’s Labour Practices. Accessed: 23 February 2010.
<http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/BECG018.htm>
Nike’s Dirty Little Secret to Success. Accessed: 23 February 2010.
<http://www.usveterandispatch.com/story24.htm>
Child Labour in Transition in Vietnam. Accessed: 23 February 2010.
<http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan005947.pdf>
HCM City: Child Labour Tales From Clothing Industry. Accessed: 23 February 2010.
<http://english.vietnamnet.vn/reports/200911/HCM-City-Child-labour-tales-from-clothing-industry878755/>
Child Labour Guide. Accessed: 8 March 2010.
<http://uk.oneworld.net/guides/childlabour?gclid=CKOf9PvwqJACFc9i4wodsnDLZA>
Causes of Child Labour. Accessed: 8 March 2010.
<http://www.childlabor.in/causes-of-child-labour.htm>
Images of Child Labour. Accessed: 8 March 2010.
<http://www.childlaborphotoproject.org/childlabor.html>
The Worst Form of Child Labour Data. Accessed: 10 March 2010.
<http://www.globalmarch.org/worstformsreport/world/turkey.html>
Disney- The Kingdom of Child Labour Violations. Accessed: 14 March 2010.
<http://www.anomalies-unlimited.com/Disney/Labor.html>
Disney in Child Labour Storm. Accessed: 14 March 2010.
<http://www.china.org.cn/china/news/2009/05/17/content_17787852.htm>
Headline Grabbing- Journalistic Trash: Apple Admits Using Child Labour. Accessed: 14 March 2010
<http://gipscorp.com/blog/2010/03/01/headline-grabbing-%E2%80%93-journalistic-trash-appleadmits-using-child-labour/>
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Disney – Code of Conduct for Manufacturers. Accessed: 14 March 2010.
<http://corporate.disney.go.com/responsibility/codeofconduct.html>
Walt Disney and Child Slave Labour. Accessed: 17 March 2010.
<http://ihscslnews.org/view_article.php?id=70>
What Companies Use Child Labour? Accessed: 17 March 2010.
<http://answers.yahoo.com/question/index?qid=20100317073048AASoQBc>
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Guiding Questions
These questions are designed to help you begin your research process in preparation for the
discussions which take place. These questions will not formally be answered, but are just guides in
aims for you to develop an opinion- and possible solutions!- on the topic. Further knowledge and
research is required to take an active part in the discussion! By the way, someone who hasn’t done
any work is quickly spotted!
1. Is it a revelation or a crime that some parents willingly send their children off to work in a
factory to survive?
2. Is it then cruel for Nike to give them the chance?
3. Some multinational companies accused of using child labour defended themselves by saying
that they were unaware of this violation of human rights. According to those MNCs, it was
their supplier, and not themselves, who made the decision to employ children. Blatant lie or
little-known truth? Why?
4. Should a differentiation be made when speaking of child labour and teenage labour?
5. Assuming a child is not malnourished or working in unsafe and violent conditions, can it still
be considered a violation of human rights? Or unethical?
6. What possible solutions could be explored to put an end to child labour?
If there are any issues regarding this topic, please don’t hesitate to contact either Amy or Juliette!
Human Rights
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