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PP42 April 2012

Walmart slammed for supply chain workers' conditions

02 Dec 2009

Source: ProcurementLeaders.com, 27 November 2009


Workers in Walmart's supply chain producing goods including shoes, Christmas lights, tools, curtains and paper boxes for sale in the US are laboring in "illegal and degrading conditions", a new report claims.

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.

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