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Biggest Risk to Latin American Supply Chains? Inadequate Labor-Protection Laws.

A lack of systems to meet local laws and ethical standards is the number one supply chain issue in Latin America, according to a report.

The Sedex Latin America briefing said inadequate working conditions and forced and child labour are the key threats in the region, with the countries of Mexico, Brazil, Colombia and Peru rated the highest risk.

The report, based on 19,653 audits at firms across the region, found non-compliance around health and safety inspections was the second most common issue, followed by inadequate management of chemicals at number three.

The report said: “Institutions for labour rights enforcement and monitoring have failed to keep pace with economic growth, and are particularly weak outside capital cities.

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