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The request comes in light of the corruption scandal related to how Walmart secured the retail market in Mexico and subsequent criminal and civil procedures in both Mexico and the United States.

Walmart’s credibility is under global scrutiny at a pivotal moment for India which is considering whether to allow foreign direct investment (FDI) in multi-brand retail.

Head of UNI Commerce, Alke Boessiger said, “We have come to Mumbai to meet with stakeholders to highlight the urgency of this situation. If India goes ahead with FDI and proper safeguards and conditions are not put in place, Walmart’s failings and aggressive anti-workers’ rights attitude represents a significant threat to India. UNI supports the need for an inquiry into Walmart’s behaviour in India based on what we have learnt elsewhere. There is cause for concern.”

The strength of feeling for an inquiry into Walmart in India is shown by the diverse group of organizations that have signed the letter, including the All India Federation of Traders and Manufacturers (Bhartiya Udyog Vyapar Mandal), the National Hawker Federation, the Farmers’ Federation (Bharatiya Krishak Samaj), FDI Watch, the Federation of Association of Maharashdra, the Federation of Traders Organisation of West Bengal, Federation of Madras Merchants & Manufacturers Association and the Federation of Rajasthan Trade and Industry.

UNI is seeking to underline the potential damage Walmart’s entry into Indian retail market could do. As well as the alleged systemic fraud and cover up in Mexico amounting to $24 million, Walmart’s merger with Massmart in South Africa is also the subject of a joint study into the impact on local suppliers. Leading US economist Joseph Stiglitz representing the South African government recognized the threat and disruption represented by Walmart’s entry when he said that Walmart should contribute up to R2 billion over 5-10 years to the supplier fund rather than the R100 million originally agreed.

Ian Campbell, Assistant Research Director at the United Food and Commercial Workers Union (UFCW) said, “There are question marks over Walmart in many countries where it operates. Since the New York Times broke the story on the alleged fraud in Mexico, Walmart’s own legal advisors have recommended that the company review its anti-corruption policies not only in Mexico but other countries too, including Brazil, China, South Africa and India. This is surely a sign of which the Indian authorities should take note and start their own independent inquiry.”

UNI was recently asked to contribute to the consultation process on FDI in Multi-Brand Retail in India and submitted a report to the Department of Industrial Policy and Promotion outlining our concerns regarding FDI in retail and focusing on Walmart’s track record regarding its pricing, sourcing and labour relations policies.

The UNI report, ‘Walmart’s Global Track Record and the Implications for FDI in Multi-Brand Retail’ was launched earlier this year at an international meeting of key stakeholders in Delhi. Meeting participants included worker, trader and hawker representatives, along with NGOs and Academics. The meeting in Mumbai will include the distribution of an updated version of the report in the light of the recent events related to Walmart South Africa and Mexico.