Wal-Mart Labor Abuses Abroad
The Washington Post and Reuters today report on a new class action lawsuit alleging Wal-Mart labor abuses in five foreign countries. Below are excerpts from the Post story:
According to the suit, filed in state Superior Court in Los Angeles, Wal-Mart has failed to enforce its corporate code of conduct in China, Bangladesh, Swaziland, Nicaragua and Indonesia while misleading U.S. consumers by touting its human rights record.
The suit, which must be certified by a judge before achieving class-action status, is the latest legal salvo against the giant retailer, which already faces class action suits alleging it discriminated against black truck drivers and female employees…The case is likely to take years to move through the courts, but in the meantime, the case is expected to add to the growing debate about Wal-Mart’s business model, which has shifted the manufacturing of everything from clothing to toys to foreign countries to cut labor costs.
Fed up with Wal-Mart’s employment practices? Click here to participate in our “Higher Expectations Week” November 13-19, 2005.
Posted by Nu Wexler on Tuesday, September 13, 2005
Click Here for a Printer-Friendly Version







COMMENTS
Super Subsidies for Wal-Mart
The City of Newport razed nearly one-hundred , mostly middle-class homes in the Cote Brilliante Neighborhood. The Reason? Blight! City officials argued that nearly ten percent of the homes in the neighborhood were vacant. Remarkably, the ten percent vacancy rate was actually below the citywide average of 10.9 percent. (according to census data) Another reason the city argued the area was blighted was from poorly maintained streets. I still can’t rationalize why crumbling public streets have anything to do with the homeowners. If the streets were a problem the city should have repaired them, since it‘s their responsibility. The city is merely stealing from those with less and giving to those with more.
As Newport officials become further and further emboldened by their new doctrine of economic development they now seek to finalize one of the most absurd subsidies that would make even the airline industry jealous. The latest scheme includes sticking a Super Wal-mart in the 55-acre Cote Brilliante tract that was, until a couple of years ago a thriving, working-class neighborhood.
First, the city absorbed all the costs of property acquisition, demolition, and related legal fees. The acquisition and demolition cost the city roughly $9 million. Not to mention legal fees resulting from long drawn out battles over the use of eminent domain in the acquisition of real estate. The City also issued $90 million in industrial revenue bonds to the sites second developer in nearly 3 years. The original developer and the city abandoned their deal stating the cities impatience in acquiring the property. (Due process, who needs it anyways?) Not to mention the lost real estate, and school taxes that were once generated by the 100 homes that used to occupy the property. As is customary with industrial revenue bonds, the city will hold the title on the property, thus exempting Super Wal-Mart from property and school taxes.
According to Forbes.com, 5 of the 10 richest people in American are heirs of the Wal-Mart empire. The city officials have said to hell with the thirty percent of families and children that live below poverty in Newport. This is no surprise from a administration that contends tenants of a 202 unit public housing complex are too poor to live on the riverfront.
I can hear city officials scrambling now….”Well, Wal-Mart will bring jobs to Newport.” Yes, they will. The kinds of jobs that keep hardworking individuals forever in poverty. The average full-time employee at Wal-Mart lives below the poverty level. The company’s decision to pay meager wages has left taxpayers to foot the healthcare costs and provide public assistance for nearly half of its workers Wal-Mart has also been found in violation of federal child labor laws. There are currently several major lawsuits against the company. One in which could play out to be the largest gender discrimination lawsuit in history and another class-action lawsuit that claims Wal-Mart employs sweatshop labor, the latter has plaintiffs from four continents I’m sure this won’t be the last we hear about Cote Brilliante and Wal-Mart. What kind of city administrators would make unfair, and financially unsound development deals to get human rights abusers and robber barons to build a new store in their city? Those who are unfit for office, and make me ashamed to be a Democrat in Newport.
Bryan in Newport, KY
Tuesday, September 13 at 07:43 PM
Wal-Mart doesn’t operate any factories and it produces nothing. It farms that work out. Using this logic, everyone would be sued. Let me give you an example. You don’t want to clean your house. So you hire a maid service. You farm out the service. This maid service has 25 employees and 8 vans. Now, let’s assume 20 people clean and 5 load vans at the company’s building. Let’s also assume that 2 women come out to clean your house and they are both 40 years old and perfectly legal. Now, back at the HQ building, perhaps one or two of the van loaders are 12-year old girls working long hours around school and in the summer. Maybe they are using equipment they shouldn’t be using.
Given the scanerio above, would you as the homeowner buying a service be guilty as a result of the company’s violations? In reality you wouldn’t be but if you are Wal-Mart, you get sued because you have deep pockets.
Do you think Mom and Pop don’t have 16-year olds running the trash bailer in the back room? Do you think fast food joints don’t have 15-year olds running a grill? Whatever. Get a life, people, and stop expecting Wal-Mart to make your family rich. And by the way, do Target and K-Mart deal with sweatshops? If so, where are their lawsuits and complaints?
Nick in Wheeling
Wednesday, September 14 at 09:51 AM
Wal-Mart fires employees who report about abuses overseas and does nothing to prevent future abuses. They don’t care as long as they keep their prices down. Wal-Mart was even kick off the Domini 400 Social Index for sweatshop toleration.
Randy in Providence, RI
Wednesday, September 14 at 10:04 AM
Once again some qoutes what the unions say as facts, when the info is just what the union wants you to believe. Wal-mart does not fire employees who reports abuses. They prefer someone to bring it to their attention so they can fix the issue, since they know the union will jump on every little tidbit…
steve in Bedford,Pa
Thursday, September 15 at 04:24 PM
Steve,
So you are saying Wal-Mart has not been involved with sweatshops? Unions are making this up? Are you stupid?
Randy in Providence, RI
Thursday, September 15 at 04:46 PM
Comment Policy
WalmartWatch.com reserves the right, in its sole discretion, to remove or refuse to post blog comments.