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UNI Global Union fully supports the nationwide action to protest at the decision by India’s Cabinet to approve 51% percent foreign direct investment in multi-brand retailing without putting in place proper safeguards and monitoring processes.



UNI Global Union, General Secretary, Philip Jennings said, “India is at a critical point in its economic development. The decision to allow FDI of 51% foreign direct investment without proper controls is the equivalent of the red carpet treatment for multinationals like Walmart. The devil is in the detail or the lack of it. India’s Parliament needs to urgently review this decision and introduce measures that will protect retail workers as well as SMEs, farmers and others in the supply chain. As the decision stands it should be thrown out. UNI would be pleased to meet with India’s government to share our global experiences of Walmart.”



Bharti-Walmart, the cash and carry joint venture between Walmart and Bharti Enterprises in India, has effectively put a gagging-order on its staff, reminding them not to speak to the media. UNI, along with its South African affiliate, the South Africa Commercial, Catering and Allied Workers Union (SACCAWU) have highlighted Walmart’s poor record in labour relations and protection of workers.



Jennings added, “To allow Walmart into India without proper safeguards would be a recipe for disaster. India should take into account the global track record of multinationals, particularly Walmart, and ensure that conditions are put in place that guarantee that communities, workers and the broader Indian economy will benefit from their entry into the Indian market.”



Bones Skulu, General Secretary, SACCAWU said, “India should beware of Walmartisation. Over the winter we saw South African supermarket chain Pick n Pay cut more than 3000 jobs as it prepares to compete with Walmart.

Protection of workers in the supply chain is also of paramount importance. This is one of the issues we have vigorously brought to the attention of the South African government and the decision is now being reviewed in the courts.”



Karthik Shekhar, who is coordinating UNI’s activities in India on FDI and multi-brand retail said, “The Cabinet has not carried out detailed research before coming to this decision which needs to be reviewed urgently. As it stands India’s SMEs will not receive the protection to compete for business with the multinationals. Big business make suppliers wait for payment and without a clearly stipulated time-frame smaller players will not have the funds to compete.”



Walmart has employed a consistent business model of downward pressure on suppliers and workers throughout its history,” explained Nelson Lichtenstein, the MacArthur Foundation Chair and Professor of History, University of California. “This pressure often has a devastating effect on suppliers that sell to the company. They may see their volume go up, but their profit margins go down. Many find themselves pitted against suppliers from countries with poor labor standards such as China and Bangladesh. Ultimately, many are unable to compete and forced to either move jobs offshore or close all together.”



While some retailers, like Carrefour and Metro, have signed Global Agreements with UNI to guarantee fundamental worker rights around the world or are open to global dialogue, 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.



UNI Global Union has more than 20 affiliate unions in India representing millions of workers across a wide range of service sectors.