In brief
New York City’s pension funds are spearheading efforts to combat labor abuses in India's sugar industry, urging companies like Coca-Cola and Pepsico to engage with labor leaders and improve conditions for workers facing exploitation, including child labor and coerced medical procedures.
In a significant push towards ethical labor practices, New York City's comptroller is leading the charge against severe human rights abuses in India’s sugar fields. Brad Lander oversees vast pension investments and is calling on major sugar buyers such as Coca-Cola and Pepsico to cease supporting a labor system marred by child labor, debt bondage, and coerced medical procedures, which investigations have revealed as prevalent in Maharashtra's sugar cane industry.The New York City pension funds control nearly $1 billion worth of stocks in these companies, which source sugar from the affected regions. Lander emphasized that they will exert pressure on these companies, ensuring they acknowledge and address the realities faced by the workers. Recent investigations highlight a grim reality, where workers endure some of the harshest conditions, characterized by violence and exploitation.Lander is fostering partnerships with Indian labor leaders and various investors, gathering support from firms like BNP Paribas Asset Management and Sands Capital, as well as London-based Schroders. Together, they aim to hold sugar-buying companies accountable while advocating for stronger ties with local labor organizations. Adding momentum to this initiative, the Biden administration has also expressed its commitment, encouraging American businesses to utilize their influence to bring about necessary changes in sugar mills. Diplomats have begun conversations with companies about collaborating with labor unions to ensure improvements in the supply chain, illustrating a collective effort towards fostering a more humane and ethical approach in the global sugar trade.
