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The Consumer Product Safety Commission has recalled two ‘Princess and the Frog’ charm necklaces today due to high levels of Cadmium, a dangerous heavy metal. The necklaces are sold exclusively at Walmart stores. It may sound like many other recall stories, but this is actually the first time the CPSC has recalled anything for containing Cadmium. The metal was spotlighted in a recent Associated Press investigation which discovered high levels of Cadmium in many pieces of children’s jewelry.

Cadmium, like lead and other heavy metals, is a known carcinogen and can cause stunted brain development in children.

The Associated Press found that Chinese factories had started using Cadmium in products after they stopped using lead due to scrutiny from the US government during the last product safety scare.

In our opinion, it is no coincidence that this first Cadmium recall happened at Walmart, either. First because the use of cadmium seems to be linked with Chinese factories, at least so far. More than 70% of Walmart’s goods come from China, making it likely that these toxic metal products could end up on Walmart’s shelves. Second, Walmart has a history of using its size and clout to push suppliers to produce at a lower cost, forcing them to cut corners to meet Walmart’s price demands and still make a profit. One of the areas that suppliers could cut corners is product safety.

We think it’s pretty irresponsible for Walmart to be selling cadmium laced children’s necklaces, or anything else with highly toxic chemicals, for that matter. That’s why we launched a campaign over the holiday shopping season demanding that Walmart remove dangerous products from its shelves. Obviously they haven’t listened.

You can read more about Walmart’s dangerous products and sign an open letter to Mike Duke demanding that he take responsibility for consumer protection here.

The official CPSC press release about the Disney ‘Princess and the Frog’ necklaces is here.

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Bloomberg is reporting today that Wal-Mart and the U.S. Chamber of Commerce are among those opposing legislation that would allow the U.S. to cut off duty-free imports from factories in Pakistan and Afghanistan, if they fail to adhere to international labor standards on matters such as prohibiting forced labor and child labor. The bill, titled the Afghanistan-Pakistan Security and Prosperity Enhancement Act, is meant to help strengthen democracy in the two countries by creating “Reconstruction Opportunity Zones” and increasing their ability to export goods to the U.S. - and in return, it only requires that the countries make sure their factories are providing adequate working conditions.

Wal-Mart, however, is among those arguing that such labor restrictions would reduce any beneficial effect the legislation might otherwise have - and besides, if factories in Pakistan can’t export products to the U.S. because of labor and human rights abuses, Wal-Mart can’t then turn around and sell those products at their everyday low prices, right?

“Pakistan doesn’t have a good record in terms of child labor and the employment of women,” [Susan Aaronson, a professor at George Washington University in Washington who has written on trade and human rights] said. “This ensures the rule of law will be followed.”

The House bill states that each country “shall continue to receive duty-free treatment under this Act only if the President determines and certifies to Congress that Afghanistan or Pakistan, as the case may be has implemented the requirements set forth” - said requirements including insuring the following:

(A) compliance with core labor standards; and
(B) compliance with the labor laws of Afghanistan or Pakistan, as the case may be, that relate directly to core labor standards and to ensuring acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety.

We’ve already documented Wal-Mart’s sourcing issues in other international locales, so it shouldn’t be all that surprising that they would oppose such regulations here. Links to summaries of both the House version of the bill (with labor requirements) and the Senate version can be found after the jump.

Obama’s Bid to Boost Exports From Pakistan Hits Snag Over Labor [Bloomberg]

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The U.S. International Trade Commission has made an announcement, and that announcement is one we shouldn’t be surprised by at this point. The ITC has ruled that U.S. tire companies are being harmed by cheap products from China, and as a result President Obama will have to decide whether to impose tariffs or quotas on the country that, thanks to Wal-Mart, is now America’s largest source of imports.

Of course, Wal-Mart’s tire business isn’t the only factor behind the ruling, but it certainly is one of the biggest. China sent 21 million tires to the U.S. in 2005, and that more than doubled to 46 million by last year. For its part, Modern Tire Dealer reports that Wal-Mart Stores Inc. has close to 3,200 outlets selling tires, although most of those sales are concentrated in its approximately 2,435-store Tire & Lube Service Centers nationwide.

The (United Steelworkers) union said China has more than tripled its tire exports to the U.S. between 2004 and 2008, ending jobs for 5,100 American workers. The union said another 3,000 workers would lose their jobs by the end of the year.

The next move for the ITC will be to come up with come up with recommendations on what the President should do to help U.S. companies, including a couple familiar names based in Ohio - Akron-based Goodyear Tire & Rubber Co. and Findlay-based Cooper Tire.

The case is the first test for Obama on trade with China, after he vowed during his presidential campaign last year to help unions or domestic industries seeking relief from foreign competition. Since the election, he also has pledged to avoid protectionism so as not to exacerbate the global recession.

U.S. agency rules for tire producers in China case [Bloomberg News]

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Much is made of Wal-Mart’s presence in China - from the fact that many of its products are sourced there to the realization that the growing power remains a prime target for Wal-Mart’s expansion.

Harold Meyerson, in his Washington Post column marking the 20th anniversary of Tiananmen Square, poses that it has been American capitalism - chiefly the Wal-Marts of the world - that has spurred the growth of China into a rising superpower:

The transfer of manufacturing from the United States to China—driven by the rise of mega-retailers such as Wal-Mart that have been able to enforce a regime of low wages all along their global supply chains—has diminished our middle class and expanded theirs.

In fact, Meyerson points out it was American businesses and their representative groups (here’s looking at you, U.S. Chamber of Commerce) that opposed legislation in China aimed at strengthening worker rights. The goal was to improve working conditions and arrest the practice of withholding wages and forcing employees into working insanely long hours, but American business interests succeeded in pushing amendments to “make it more acceptable to foreign firms” - a fancy way of saying weakening the effect the bill would actually have on workers and the businesses that depend on keeping costs down. No wonder they’re such close buddies nowadays.

You can read the whole column, but Meyerson unleashes his most venomous critique in his closing:

Wal-Mart, which used to lock its night-shift stock clerks and janitors inside a number of its stores until the morning managers arrived, prefers production in Guangdong to manufacturing in the Midwest. Indeed, the director of purchasing for Wal-Mart is based in China.

As historian Nelson Lichtenstein and others have documented, Wal-Mart inspires in its managers an almost fanatical allegiance to the company’s cause. In Wal-Mart world, the provincialism (if not “idiocy") of rural life is fused with a brilliance in the art of low-cost, low-wage logistics to create a company that is both authoritarian in its inner workings and a friend of authoritarian regimes abroad. The butchers of Beijing could not have found any more compatible capitalists.

Beijing’s Favorite Capitalists [Washington Post]

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Classic Wal-Mart. Only months after Wal-Mart tried to suppress a report detailing its sweatshop abuses in the country, the company is back in town demanding lower prices.

For the past few years as labor costs in China have become too high for Wal-Mart’s liking the company has been looking more and more into cheaper countries, like Bangladesh, Pakistan and Vietnam. While Wal-Mart and other retailers are claiming that the price cuts are necessary for Bangladesh to remain competitive with countries like India and Vietnam, Bangladesh’s prices already are among of the lowest in the world.

Bangladesh’s workers, like their U.S. counterparts, deserve better. These workers are not passively accepting virtual servitude: labor activism has grown there in recent years and some unions have resulted, though legal protections remain minimal. In 2006, factory workers even took to the streets in protest.

As the most powerful and profitable retailer in the world, the onus is on Wal-Mart to stand up and do the right thing for its workers - in every corner of the world.

International cloth buyers ask Bangladesh to cut prices [Reuters]

International cloth buyers and retailers at a rare meeting in Dhaka on Thursday asked Bangladesh to reduce prices of the ready-made garments (RMG) to make them competitive in the global markets, a key business leader said.

“They have suggested us to make all-out efforts to keep the prices at least at the level of what the price is being offered by India, Pakistan, China and Vietnam, the major competitors of us,” said Abdus Salam Murshedy, the president of Bangladesh Garment Manufacturers and Exporters Association.

More than 50 major buyers including Sears Holdings Global Sourcing Ltd, Marks & Spencer Plc, Hennes & Mauritz International, Wal-Mart, JC Penney, Tesco International and Nike Inc, attended the meeting with Bangladesh’s textile exporters.

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Materials listed here originally published on the website of the Business & Human Rights Resource Centre, dedicated to “tracking the positive and negative impacts of over 4,000 companies worldwide”

A recent report issued by NGO SweatFree Communities concerning the wages and labor practices at Wal-Mart supplier factory JMS Garments in Bangladesh, has provoked a dialogue between the retailer and its critics. Another human rights group, the Business & Human Rights Resource Centre, called on Wal-Mart to respond to the report’s allegations, and a couple weeks later the company e-mailed them a statement:

According to the information provided in their report, SweatFree Communities conducted their initial research in September of 2007.  However, they only released the findings to Wal-Mart in August, 2008, a full 11 months later.  If SweatFree were truly concerned about improper working conditions, they would have brought their issues to the attention of all the companies using the subject factory immediately.

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Today, Wal-Mart gathered more than a 1,000 suppliers in Beijing, China to “reveal a new supplier agreement that will require manufacturers to allow outside audits and to adhere to specific social and environmental criteria.” This so called “sustainability summit” was a public relations ploy to quell concerns that Wal-Mart has not done enough to ensure product safety, protect factory workers rights, and to lessen its global footprint. 

Wal-Mart’s current supplier standards already contain such provisions for audits and adherence to social and environmental criteria.  And while Wal-Mart’s goals of increasing unannounced audits and working with independent auditors are lofty, revising the current standards is insufficient in comparison to the real problem:  Wal-Mart’s infamous push for the lowest costs possible, no matter what. 

When Wal-Mart refuses to pay factories a fair price, many factories simply make up for low profit margins by forcing laborers to work overtime with little rest or substituting quality materials for inferior, and often toxic, ones.  When audits occur (usually within the factory confines), workers have been coached on appropriate responses for passing the audit.  In short, Wal-Mart is getting exactly what it pays for.

And that Lee Scott thinks “offering long-term agreements to suppliers willing to make the big investments needed to live up to Wal-Mart’s environmental demands” would be adequate compensation for the necessary changes is not only insulting, it’s absurd.

As Shao Zhuliang a Chinese business executive said “It’s always hard to make money from Wal-Mart orders.” In fact, reputable factories that meet standards and provide quality products have refused to work with Wal-Mart because the orders are unprofitable and that the risks and logistics of working directly with Wal-Mart are not worth the price.

If Wal-Mart is going to change, it needs to put its money where Lee Scott’s mouth is.

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SweatFree Communities, an anti-sweatshop activist group, went undercover in Bangladesh to examine working conditions in Wal-Mart’s supplier factories. The resulting report (PDF) paints a heart-wrenching portrait of the poverty and abuse that make Wal-Mart’s low prices possible.

BusinessWeek’s article on SweatFree’s findings is equally troubling. The piece highlights problems at Wal-Mart that enable sweatshops: preannounced factory inspections mean managers can hide violations, and fewer corporate reports on the state of its supply chain means Wal-Mart executives are turning a blind eye. Wal-Mart also tried to suppress SweatFree’s report, alone a worrysome fact. SweatFree Communities Executive Director Bjorn Claeson is quoted in the article saying, “Wal-Mart has incredible economic muscle in that country. If it takes the leadership position as a retailer and works with other brands, there is no question that it can really have an impact.”

Wal-Mart Supplier Accused of Sweatshop Conditions [BusinessWeek]

The world’s largest retailer, Wal-Mart Stores (WMT), is being accused of buying school uniforms that were made under extreme sweatshop conditions at a factory in Bangladesh.

The JMS Garments Factory in Chittagong, Bangladesh, produces school uniforms that are sold in Wal-Mart stores under the Faded Glory brand name. A report from SweatFree Communities, an anti-sweatshop activist group based in Bangor (Me.), found that workers at the factory work up to 19-hour shifts to finish Wal-Mart’s orders under tight deadlines; are made to stand for hours as punishment for arriving late to work; and are frequently subject to verbal abuse and kicking or beatings. Some workers earn as little as $20 each month, the group says—even lower than the country’s legal minimum wage of $24 per month.

The report is based on interviews with more than 90 workers conducted away from the factory in workers’ homes by a Bangladeshi nongovernmental labor research organization on behalf of SweatFree Communities, a five-year-old nonprofit group funded by activist foundations such as the Solidago Foundation, CarEth Foundation, and Presbyterian Hunger Program. The group works to get commitments from schools, cities, and other employers to buy goods with employee rights in mind.

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