Global union wants inquiry into Wal-Mart’s practices in India
06 Jul 2012
A global trade union federation has written to Prime Minister Manmohan Singh formally asking for an inquiry into retail giant Wal-Mart's operating practices in India.
The request comes in the backdrop of the corruption scandal related to Wal-Mart's securing retail market in Mexico and subsequent criminal and civil procedures in both Mexico and the United States. (See: Mexico launches probe into Wal-Mart's practices).
In its letter to the prime minister, UNI Global Union, a global federation of unions based in Switzerland, has sought to underline the potential damage Wal-Mart's entry into Indian retail market could do.
Wal-Mart was also allegedly involved in a systemic fraud and cover-up in Mexico, amounting to $24 million. Wal-Mart's merger with Massmart in South Africa is also the subject of a joint study into the impact on local suppliers (See: Wal-Mart to enter Africa with regulatory approval for Massmart).
UNI Global Union represents 900 unions with members in more than 150 countries in the service sector. Among others, UNI represents unions in the commerce / retail industry in many countries across the globe, including India.
Economist Joseph Stiglitz, representing the South African government, recognised the threat and disruption represented by Wal-Mart's entry into the country when he said that Wal-Mart should contribute up to Rand 2 billion over 5-10 years to the supplier fund rather than the Rand 100 million originally agreed.
UNI, which contributed to the consultation process on FDI in multi-brand retail in India and submitted a report to the department of industrial policy and promotion outlining its concerns regarding FDI in retail, is focusing on Wal-Mart's track record regarding its pricing, sourcing and labour relation policies.
