Mexican Supreme Court Compares Wal-Mart’s Labor Practices to Dictatorship

In the past, we’ve compared Wal-Mart to the Harry Potter villain Voldemort, as a way to highlight the retailer’s harsh treatment of employees and devastating impact on small towns. The Mexican Supreme Court has made an even more extreme condemnation: the court recently compared Wal-Mart’s labor practices to those of Mexican dictator Porfirio Diaz, whose rule was known for brutal use of power and widespread corruption.

The comparison arose after a Wal-Mart employee complained to the court that Wal-Mart was essentially paying its workers in store credit, rather than actual money. Vouchers handed out to employees as part of their salary could only be used at Wal-Mart stores, the employee said. President Diaz used similar plans during his regime.

Labor problems have dogged Wal-Mart in Mexico since it began expanding in the country in the early 2000s. A worker strike at several Walmex stores in February ended suspiciously, leading many to wonder if the company hired false negotiators or intimidated employees. Prior to that incident, Wal-Mart workers rallied in Mexico City to demand better conditions and a union. The company has also been criticized for refusing to pay teenagers employed as baggers at its Mexico stores. In light of these problems, the Supreme Court’s comparison seems somewhat fitting.

Mexico’s Supreme Court slams Walmart’s labor practices [AFP]

Mexico’s Supreme Court compared the practices of US retail giant Walmart in Mexico to employer-worker relations during the dictatorship of former president Porfirio Diaz.

Diaz served as president and absolute ruler of Mexico from 1877-80 and from 1884-1911.

Mexico’s top court on Thursday backed a Walmart employee who had complained that vouchers handed out by the company as part of its salary payments could only be spent in the company’s stores.

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