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India’s Cabinet has approved 51% foreign direct investment in multi-brand retailing such as supermarkets. Multinationals including Walmart and Tesco stand to gain at the expense of India’s millions of small traders and workers who are part of the domestic supply chain.



The requirement that the multinationals would have to source 30 percent of sales from local small and medium sized companies is not enough and not backed up by independent monitoring of investment and procurement. The government has rejected independent monitoring in favour of self-certification which UNI says is a system open to abuse.



The decision has been taken against advice of major stakeholders such as small retail traders, trade unions and politicians, including members of the ruling Congress party, who argue that not enough protection is being given to workers.



UNI Global Union General Secretary, Philip Jennings, said, “We are appalled by this decision and stand fully behind the trade unions in India who have made it clear that opening the doors to foreign companies like Walmart will be catastrophic for India’s small traders. In South Africa, Walmart is also knocking on the door but there the government has had the good sense to reconsider its decision. India should do the same. Walmart and many other global retailers have a poor track record in labour relations and protecting workers. India be warned!”



UNI Global Union has urged India to take into account the global track record of the multinational giants and ensure that conditions are put in place sufficient to guarantee that communities, workers and the broader Indian economy will benefit from their entry into the Indian market.



Some retailers, like Carrefour, have signed Global Agreements with UNI to guarantee fundamental worker rights around the world. Walmart has taken an extreme position against allowing unions in its home country, the United States, where not a single worker is represented by a union among its 1.4 million employees.



In South Africa, UNI's affiliate the South Africa Commercial, Catering and Allied Workers Union (SACCAWU) and three agencies of the South African government have appealed the decision of the Competition Tribunal to allow Walmart to take over South Africa’s Massmart company. They argue that Walmart does not respect labour rights and the merger would bring job losses and seriously damage domestic suppliers. The ruling from the appeal court is expected in the coming weeks.



“We have seen the devastating effect that Walmart has upon workers, suppliers and small retailers, and we have a serious concern that, absent the right controls, the unfettered entry of Walmart to the Indian market could have devastating effects upon numerous stakeholders”, stated Michael Bride, Deputy Organizing Director of Global Strategies for the North American United Food and Commercial Workers’ Union (UFCW).



In India mass organisations of small retailers, manufacturers and hawkers have jointly called for an All India Trade Strike on 1st December to demand that the Government drops the move to allow FDI in retail. The trade organisations are calling on people to support the day of action.



UNI and its affiliates from around the world will continue to support opposition to the decision in India which has given a green light to the multinationals without proper consideration.