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India’s Minister of State for Commerce and Industry, Jyotiraditya Scindia, in a written reply to the Rajya Sabha (Upper House of Parliament) quoted from UNI’s report, “Walmart’s Global Track Record and the Implication for FDI in Multi-Brand Retail in India” and said foreign direct investment (FDI) in multi-brand retail without adequate safeguards would lead to widespread displacement and poor treatment of the Indian workers in logistics, agriculture and manufacturing.



The Times of India of India concluded, “….the latest comments on the foreign retail giant could fuel fresh opposition to the government's move to open up the sector to foreign firms. The UPA government is soon expected to make a fresh bid to implement its decision to allow foreign retailers in the multi-brand retail sector.”



UNI Deputy General Secretary, Christy Hoffman said, “It is a positive development that the Minister has recognised the serious concerns contained in the report. We first shared the findings with the Indian government during a meeting with the Department of Industrial Policy and Promotion in March this week. We brought their attention to Walmart’s track record regarding pricing, sourcing and labour relations policies. It is not too late for India to act and prevent the Walmartization of its economy. Walmart has a case to answer as we’ve seen in Mexico, South Africa and elsewhere. ”



As well as alleged systemic bribery and cover up in Mexico amounting to $24 million revealed by The New York Times earlier this year, 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 proposed that Walmart should contribute up to R2 billion over 5-10 years to the supplier fund rather than the R100 million originally agreed.

Hoffman added, “The decision over whether to allow FDI in Multi-Brand Retail is India’s alone but we strongly recommend that the Indian authorities start their own independent inquiry into how Walmart operates and the threat to India’s economy and society. Walmart’s own legal advisors have recommended that the company reviews its global anti-corruption policies in the wake of the Mexico scandal. India take note!”



Read the full report and addendum including analysis of the Walmart Mexico scandal and the update on South Africa by clicking on the related files tab above.



See a selection of latest press coverage on the report below:

http://www.business-standard.com/india/news/wal-mart-facts-fdi-lobbyists-may-not-like-you-to-know/183849/on







http://timesofindia.indiatimes.com/business/india-business/FDI-in-multi-brand-retail-will-hurt-workers-across-sectors-Global-report/articleshow/15610878.cms





http://www.deccanherald.com/content/273384/fdi-retail-harm-indian-workers.html



http://www.indianexpress.com/news/global-report-says-without-safeguards-multibrand-fdi-may-harm-workers-scindia/991858/





http://truthdive.com/2012/08/22/fdi-in-multi-brand-retail-will-affect-indian-workers-jyotiraditya-scindia.html



http://www.tribuneindia.com/2012/20120823/biz.htm#8



http://articles.economictimes.indiatimes.com/2012-08-22/news/33322538_1_multi-brand-bharti-wal-mart-wal-mart-stores