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Walmart slammed for supply chain workers' conditions02 Dec 2009Source: ProcurementLeaders.com, 27 November 2009
China Labor Watch's latest investigation of five Wal-Mart supplier factories claims that "not a single factory has implemented Wal-Mart's basic standards, and a total of 10,000 workers included in the report suffer serious rights abuses". In the report, CLW attributes this failure to ineffective auditing and a pricing structure that forces factories to sell goods at unsustainable prices. As the world's largest retailer, Wal-Mart leverages its massive product orders to purchase goods at low prices, and workers suffer the financial burden, according to CLW. "This is not about a single factory, but about Wal-Mart's inability to implement its standards," said CLW Executive Director, Li Qiang. The report states that workers at all five factories work at least 3 hours of overtime/day, for 100-140 total hours of overtime/month, and one factory routinely schedules overtime through the night. Two of the factories illegally underpay overtime wages at rates as low as $0.44/hour, and two withhold wages from workers who fail to meet production quotas. |