Monday, June 15, 2015

WalMart has two dirty hands


On the one hand they try to wash away their horrible image as a minimum wage sweat shop with hosannas of joy at their new higher wages. And by doing so they hope you will ignore all their failures within their supply chain.
The company has a history of broken promises, but the disturbing findings of this report take the big-box retailer’s hypocrisy to whole new level.

According to Walmart’s “ethical sourcing” standards (PDF), all suppliers and their manufacturing facilities at a minimum “must fully comply with all applicable national and/or local laws and regulations, including but not limited to those related to labor, immigration, health and safety, and the environment.”

But the report finds that Walmart has failed to enforce supplier compliance with its code of ethics for labor practices, environmental sustainability and local sourcing of food. Workers in Walmart’s stores and in its food supply chain endure a slew of labor abuses, including gender and racial discrimination, unfair treatment of immigrants, low pay, violations of freedom of association and even workplace accidents and fatalities.
Laborwashing

Walmart has set a rather low bar for the labor standards of its suppliers:

All labor must be voluntary. Slave, child, underage, forced, bonded or indentured labor will not be tolerated. Suppliers shall not engage in or support trafficking in human beings.

Yet the company has failed to meet it. Last year, for instance, a large seafood supplier to Walmart was exposed for its ties to slave labor. Thailand-based seafood exporter Charoen Pokphand Foods bought fishmeal for its farmed shrimp from some suppliers that own, operate or buy from fishing boats manned with slaves. The Guardian reported that “large numbers of men [were] bought and sold like animals and held against their will on fishing boats.”

In addition, Rose Acre Farms, a major Walmart egg supplier was sued in 2012 by the U.S. Department of Justice for discriminatory practices against newly hired non-U.S. citizens, requiring additional or different security documents than what is legally required. In addition, in 2013, the Equal Employment Opportunity Commission reported that another major egg producer, Cal-Maine Foods, violated federal law by “subjecting an African-American employee to racial and sexual harassment and retaliation.”

For years, labor advocates have challenged Walmart to pay its workers a living wage. To its credit, the corporation recently announced some small increases in base wages. But Walmart refuses to set a living wage as its standard, and for many of its suppliers’ workers, decent pay remains elusive.

The company has a history of broken promises, but the disturbing findings of this report take the big-box retailer’s hypocrisy to whole new level.

According to Walmart’s “ethical sourcing” standards (PDF), all suppliers and their manufacturing facilities at a minimum “must fully comply with all applicable national and/or local laws and regulations, including but not limited to those related to labor, immigration, health and safety, and the environment.”

But the report finds that Walmart has failed to enforce supplier compliance with its code of ethics for labor practices, environmental sustainability and local sourcing of food. Workers in Walmart’s stores and in its food supply chain endure a slew of labor abuses, including gender and racial discrimination, unfair treatment of immigrants, low pay, violations of freedom of association and even workplace accidents and fatalities.
Laborwashing

Walmart has set a rather low bar for the labor standards of its suppliers:

All labor must be voluntary. Slave, child, underage, forced, bonded or indentured labor will not be tolerated. Suppliers shall not engage in or support trafficking in human beings.

Yet the company has failed to meet it. Last year, for instance, a large seafood supplier to Walmart was exposed for its ties to slave labor. Thailand-based seafood exporter Charoen Pokphand Foods bought fishmeal for its farmed shrimp from some suppliers that own, operate or buy from fishing boats manned with slaves. The Guardian reported that “large numbers of men [were] bought and sold like animals and held against their will on fishing boats.”

In addition, Rose Acre Farms, a major Walmart egg supplier was sued in 2012 by the U.S. Department of Justice for discriminatory practices against newly hired non-U.S. citizens, requiring additional or different security documents than what is legally required. In addition, in 2013, the Equal Employment Opportunity Commission reported that another major egg producer, Cal-Maine Foods, violated federal law by “subjecting an African-American employee to racial and sexual harassment and retaliation.”

For years, labor advocates have challenged Walmart to pay its workers a living wage. To its credit, the corporation recently announced some small increases in base wages. But Walmart refuses to set a living wage as its standard, and for many of its suppliers’ workers, decent pay remains elusive.
WalMart is the 800 lb gorrilla in the grocery business as well as every other retail line. If they had any interest in maintaining ethical standards, they would be maintained, but then the profits might not meet Wall St expectations and the poor Walton family might see a decrease in their net worth. Nothing in their eyes is worth that.

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