Wal-Mart Corporate Communications Office Responds to Demands for Fair Pay

Wal-Mart’s corporate office in Mexico has been inundated with demands from Wal-Mart Watch supporters that the company pay its teenage workers. The company has started responding to these requests with the following form letter from Wal-Mex’s Office of Corporate Communications:

Dear [name omitted]:
You are wrong in your appreciation on the Mexican Government sponsored student program.

The student volunteer baggers program is a long-standing activity in the Mexican retail sector, and began decades before Wal-Mart entered the Mexican market.

The program falls under the umbrella of the local social assistance programs for teenagers at school (14 to 15 years old) to earn money in a safe environment regulated by the Mexican labor authorities under an agreement signed with the National Retailers Association of Mexico (ANTAD).

We believe that the program contributes to the teenagers’ well-being and helps their families’ income, while encouraging baggers to maintain good grades at their schools since they are required to present their grades in order to continue in the student baggers program.

As a member of ANTAD, Wal-Mart de Mexico supports these local assistance programs, and respects and fulfills the legal framework established by the Mexican authorities. It is important to note that all major retailers in Mexico participate in this program.

This program provides an opportunity for Mexican students to occupy their free time in a productive activity and is designed in accordance with the International Labor Organization´s guidelines. The program is regarded as positive, as it contributes to the teenagers’ development and to the welfare of their families, providing the teenagers with skills and real world experience to help them become productive members of society.

To support this claim, a study conducted by Mexico’s Family Development Institute and UNICEF showed that teenagers who work as volunteer baggers were less likely to abuse controlled substances than peers involved in other activities.

It is important to state that, in accordance with Mexican Law, the student baggers are not considered employees of Wal-Mart or any of the other companies on whose premises they offer their services, and they are required to ask for their parents’ permission to participate in the program under the auspicies of labour authorities. Wal-Mart de Mexico maintains a close relationship with labor government agencies regarding the permits to be presented by student baggers in order to be able to perform their voluntary activities. Wal-Mart de Mexico also pursues full compliance of the agreement and constant cooperation with local authorities to address any comment and opportunity to improve.

Students wishing to participate in the program need to apply to the Mexican Department of Labor.  Once we receive their application, we verify their eligibility to participate. Wal-Mart de Mexico ensures full compliance with the Labor authorities by verifying the following:

• Baggers must be between 14 and 16 years of age
• Written authorization obtained from the Department of Labor
• Signed permission from parent or legal guardian
• Proof of enrollment in school, including latest report card
• Up to date physical exam, twice a year

In addition to legal stipulations, Wal-Mart de Mexico ensures that its student baggers:

• Are limited to bagging and carting customer merchandise no further than the parking lot perimeter
• Go twice a year to the Department of Labor for their medical certificate
• Receive training each quarter on packing service and techniques
• Are provided with apron, cap, and the material needed to conduct bagging activities
• Provide their volunteer services for a maximum of two shifts, consisting of three hours each one, with a break of 15 to 30 minutes between shifts
• May not work after 9:45 pm

However, due to our commitment to improve the standard of living of Mexican families, Wal-Mart de Mexico has gone beyond the agreement governing this activity and provides voluntary baggers with additional benefits.  Wal-Mart de Mexico has voluntarily purchased accident insurance coverage for the total of its volunteer teenaged baggers while at our units and between their homes and our units and viceversa. Furthermore, the agreement states that ANTAD participants provide those volunteers that keep their school average above 8 an economic incentive in August. Based on grades obtained in school, Wal-Mart de Mexico voluntarily provides economic incentive in January as well.

Wal-Mart de Mexico works closely with the authorities so that the voluntary bagger program benefits continue to be designed to improve the standard of living of the Mexican families, especially for those who need it most. Wal-Mart de Mexico believes that it is part of its social responsibility to support the government in social programs aimed at contributing to the welfare of Mexican families, providing the volunteers baggers with skills and real world experience, and helping them to become productive members of society.

I hope this information can help you better assess the great benefits of the Program and of our participation in it.

Antonio Ocaranza Director, Comunicación Corporativa
Tel: 55-52830271

This email and any files transmitted with it are confidential and intended solely for the individual or entity to whom they are addressed. If you have received this email in error destroy it immediately.

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Wal-Mart Confidential

If Wal-Mart is so committed to helping the teenagers working at its stores, maybe it should try paying them a salary.

Posted by Alex Goldschmidt on Friday, February 01, 2008

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