Business

Western Companies React to Migrant Slave Labor Accusations in Thailand

A Thai employer, left, monitors migrant workers from Burma working on his fishing boat at a port in the town of Mahachai near Bangkok on March 11, 2010. (Photo: Reuters / Damir Sagolj)

THAILAND – A US human rights group is calling on major Western food retailing companies to put pressure on businesses in Thailand after a major Thai conglomerate was linked to allegations of trafficking and slave labor involving Burmese migrants.

The call for action comes from the Washington-based International Labor Rights Forum (ILRF) following an investigation into Thailand’s fishing industry, which employs thousands of Burmese migrant workers.

The investigation, by The Guardian newspaper of London, spotlighted the plight of “large numbers of men who have been bought and sold like animals and held against their will on fishing boats off Thailand” and who were part of the “production of prawns sold in leading supermarkets around the world.”

The newspaper identified CP Foods as being closely tied to supply chains that include Thai fishing boats using Burmese slave labor. Two Western supermarket chain companies, including France-based Carrefour, have already stopped buying supplies from CP Foods in the wake of The Guardian report.

“Swift action is vital, and action from [prawn] buyers can significantly improve conditions for the workers along their supply chains,” ILRF campaigns director Abby Mills told The Irrawaddy. “ILRF does not, however, advocate a cut and run approach.”

“Cutting relationships with suppliers without first trying to address the underlying problems can leave exploited workers in bad situations without options for redress. Western companies should work with their Thai counterparts to make real changes that increase supply chain transparency, improve mechanisms to identify labor law violations and empower workers to report and seek remedy,” Mills said.

“Companies have an important role to play in setting certain standards for their suppliers, and enforcing them all the way down the supply chain, that could dramatically improve livelihoods and working conditions for these workers.” That kind of response begins to get at the root causes of why labor trafficking is so prevalent in the Thai seafood sector, Mills said.

The call for action by the ILRF comes as Thailand is embarrassingly scolded by the United States for its failure to tackle migrant labor abuse in the country.

The US State Department’s annual Trafficking in Persons Report, released last week, downgraded Thailand’s status to the lowest tier, placing it in the same category as North Korea, Syria and Saudi Arabia.

US Secretary of State John Kerry said the aim of the report was to remind the world “of what happens in many dark places that need light.”

Previous US reports on human trafficking had urged Bangkok to deal with the problem, but this year marks the first time the State Department has downgraded Thailand.

Bangkok-based CP Foods is part of the sprawling CP Group, which has business interests across Southeast Asia and China with an annual turnover of about US$33 billion—more than half the size of Burma’s GDP in 2013.

“The investigation found that the world’s largest prawn farmer, the Thailand-based Charoen Pokphand (CP) Foods, buys fish-meal, which it feeds to its farmed prawns, from some suppliers that own, operate or buy from fishing boats manned with slaves,” said The Guardian.

Among other things, it alleged that migrants press-ganged onto fishing boats had been forced to work 20-hour days, beaten and tortured. Fifteen Burmese and Cambodians interviewed by the newspaper said they had paid brokers to help them find work in Thai factories or on building sites.

“But they had been sold instead to boat captains, sometimes for as little as £250 [US$426]. Some were at sea for years; some were regularly offered methamphetamine’s to keep them going. Some had seen fellow slaves murdered in front of them,” The Guardian reported.

Shrimps sold by leading supermarkets around the world, including the top four global retailers Wal-Mart, Carrefour, Costco and Tesco, had come from CP Foods, it said.

“At the heart of the problem is Thailand’s treatment of its migrant workforce,” said the ILRF’s Mills.

“At the end of 2013, there were an estimated 3-4 million migrant workers in Thailand. The majority of these workers, 80 percent, came from Burma to work in the most dangerous, dirty jobs, including manufacturing, seafood harvesting and processing, and domestic work,” Mills said.

“Complex, expensive immigration policies and labor laws that bind migrant workers to their employer also leave them vulnerable to trafficking and exploitation by unscrupulous employers. Endemic police corruption, including the direct involvement in and facilitation of human trafficking by law enforcement officials, perpetuates the problem,” according to the 2013 Trafficking in Persons report from the US Department of State.

CP Group was in the spotlight in 2013 over the treatment of Burmese workers at one of its seafood processing factories south of Bangkok. The firm fired 160 Burmese without notice or proper compensation at its Mahachai coastal factory in a process that involved dubious sub-contractors.

The firm agreed to re-instate the workers following the intervention of NGOs and the Burmese Embassy in Bangkok.

CP Group, which employs 280,000 people worldwide and operates the world’s third-largest 7-Eleven convenience store franchise, has expressed interest in investing in rice and maize farms, milling plants and meat processing factories in Burma.

CP Foods in Bangkok declined to comment to The Irrawaddy on the allegations in The Guardian, which quoted a company spokesman in Britain, Bob Miller, saying slavery was indefensible. “We know there’s issues with regard to the [raw] material that comes in [to port], but to what extent that is, we just don’t have visibility,” Miller told the paper.

The revelations about slave labor come as the military coup leaders in Thailand have ordered a targeting of migrant labor in general in the country. There have been numerous reports of soldiers and police raiding businesses employing Burmese and Cambodians.

Tens of thousands of Cambodians and an unknown number of Burmese, mostly undocumented workers, have been sent back across their borders. Reports have said that even legally documented Burmese are being harassed by the authorities since the Army took over the country. – William Boot

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP