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Walmart’s decision to suspend its chief financial officer and members of its legal team in India shows the depth of the growing crisis around Walmart. The company’s decision to suspend senior management in India is part of its ongoing investigation into possible violations of the US law that bans US firms from paying bribes to win or retain business abroad. UNI Global Union says the government of India must now carry out its own thorough investigation into Walmart’s activities before going any further with the implementation of foreign direct investment.

News of the suspensions at Walmart in India comes on the day that thousands of US Walmart workers are striking on “Black Friday”, an historic action led by workers under the banner “Our Walmart” against the company’s attacks on labour rights. Walmart itself is investigating its own practices in a number of countries, apart from India, including Brazil, China and Mexico. Earlier this year, a cover-up over allegations of bribery by Walmart related to winning the Mexican market led all the way to its US head office in Bentonville and implicated members of the board, including CEO Mike Duke and Chairman Rob Walton.

Yesterday the Parliament in India had to be suspended over an uproar about the decision to allow global firms to buy up to a 51% stake in multi-brand retailers in India - a decision which if widely applied at state level would pave the way for Walmart to dominate the Indian market.

UNI Global Union General Secretary, Philip Jennings, said “It is indeed a black Friday for Walmart everywhere. UNI has made it clear to India’s government that if Walmart is to be allowed in under FDI, then there should be proper conditions applied that are independently monitored. Reports that top management have been suspended at Walmart in India amid its own bribery investigation, is an indication of how rotten this apple may be. The government of India must begin a thorough investigation forth with. “

Jennings added, “India must think again about its position on FDI especially related to Walmart, if it is to avoid the scenario we are seeing in the US today with non-union workers risking their jobs by striking in the face of the company’s cynical anti-worker policy of low pay, precarious work, short hours and intimidation. Strong unions are the only way for workers to be protected, whether in the US, Latin America, South Africa, India or beyond against this kind of irresponsible management.”

Walmart operates wholesale stores in India with local partner Bharti but plans to open up retail stores across the country. The Indian Parliament is suspended until Monday when once again FDI is likely to be debated. In the US and abroad Walmart has pursued a growth at any cost strategy. Its unsustainable business model has been exported from the US to countries such as Mexico where its rapid expansion has been at the expense of smaller, often family retailers. In South Africa, The Courts recently ordered Walmart to double the local supplier development fund to R240 million for its acquisition of Massmart to off-set the Walmart effect, an indictment of its destructive business model. The Court underlined the need to keep Walmart under close scrutiny by appointing an advisory board to oversee the administration of the fund. The board will include UNI affiliate SACCAWU, the government and the South Africa Small and Medium Enterprise Forum. The UNI Walmart Global Union Alliance was launched last month in Los Angeles with the support of UNI’s 900 union affiliates including, the UFCW in the US which has helped spearhead the campaign. The launch of the Alliance coincided with the first strike in US Walmart history.