SANTA FE– New Mexico State Treasurer Laura M. Montoya has joined several state treasurers—as well as several other long-term shareholders—in a letter expressing serious concern regarding the recent New York Times investigative report by Hannah Dreier (the “New York Times Report”) that companies may be profiting from the use of U.S. suppliers that illegally employ underage migrant children. The letter highlights that such practices pose serious legal, regulatory, operational, and reputational risks to Companies and shareholder returns. The New York Times Report cited horrific stories that would amount to serious breaches and/or blind spots in Company controls and processes that are material to the Companies and their ability to meet investor expectations.
“Whether it’s the companies, or the entities they contract with, no one should take advantage of immigrant children or exploit their life circumstances and gain from the investment of taxpayer dollars,” said Treasurer Laura M. Montoya.
“As the first elected Latina Treasurer in this country’s history, and representing a border state, I will always advocate for the protection of all children from exploitation, especially those working to support themselves.”
In addition to the joint letter sent to eight companies, Treasurer Montoya has written a separate letter to Amazon, Walmart, and Pepsi Co., because the State Treasurer’s Office is currently investing NM funds in these three entities. The letter requests the following:
The steps each company is taking with respect to the named suppliers;The steps taken to identify other domestic suppliers that may employ child labor; andThe steps or policies in place to prevent recurrence of similar abuse of child labor.
Pepsi Co. executives have met with Treasurer Montoya and committed to providing an update once they complete their internal investigation. Walmart and Amazon have responded in writing but have not scheduled a meeting with the Treasurer regarding her concerns and requested deliverables.
The concerns surround the significant legal and reputational risks to the Companies posed by these grave allegations and the well-being of these young people, who could be any of our children. The illegal employment of underage migrant children may be more widespread than the instances cited in the New York Times Report. Given the seriousness of the allegations, Treasurer Montoya urges the Companies to conduct a risk-based assessment to identify any additional domestic suppliers that may employ underage migrant children. Until the requested deliverables are received, Treasurer Montoya has placed the Companies on the “Caution List,” which means her office has ceased further investing with the Companies.
Immigrants make up a significant proportion of the workforce in border states and certain cities. Many vital industries depend on immigrant workers to meet their labor demands and provide critical services and goods to our communities. At the same time, immigrant workers, especially those who are unauthorized to work in the United States, are particularly susceptible to abusive and unlawful labor conditions, and are especially vulnerable when bringing these violations to light. As a result, workers can be reluctant to report such violations out of fear that their employer would respond by reporting them or their family members to immigration authorities.
In sending the letter, Treasurer Montoya joins the Treasurers of New York, Connecticut, Delaware, Maine, Massachusetts, Nevada, and Oregon, as well as the City of New York, Amalgamated Bank, PIRC Ltd, SOC Investment Group, and The Local Authority Pension Fund Forum (LAPFF).