News

UNI Global Union calls on the US Justice Department to carry out a global review into how Walmart is operating in light of the serious corruption allegations in Mexico. UNI welcomes the decision by the Attorney General in Mexico to investigate claims that Walmart used large scale bribery to secure and speed up the spread of its stores and then initiated a cover-up. However UNI says the implications for Walmart’s credibility in other countries, especially in South Africa and India are too serious to be ignored. The New York Times’ report which set out the allegations made reference to fraud complaints relating to Walmart’s activities emanating in many countries, particularly in Asia.



UNI Global Union General Secretary, Philip Jennings said, “If these allegations are proven they could be just the tip of the iceberg. The probe into Walmart is widening as Walmart’s labour practices come into focus.

Why should we believe Walmart when they say they have and will operate properly in new markets?”



Jennings added, “In South Africa a new study has been commissioned by the courts to investigate how local suppliers can be protected from Walmart. In light of the Mexico bribery scandal this study needs to be expanded. Walmart’s CEO Mike Duke and the Chairman of the board, Rob Walton have been discredited by their association with the Mexico scandal. They should resign and countries like South Africa and India, where Walmart is also poised to enter the market, should think again. Ultimately it is up to the US Justice Department to address what appear to be serious breaches of the US Foreign Corrupt Practices Act. ”



The UNI America’s Executive Board meeting in Mexico City had written to President Calderon to launch a full investigation immediately and ensure any guilty parties are brought to justice.



UNI Americas Regional Secretary Adriana Rosenzvaig said, “Of course it is a positive move that President Calderon and his government have heeded the calls by us and other members of the international community. But what we want to see is justice for the thousands of farmers, workers and whole communities who have suffered because of the Walmart invasion which now appears to have been accomplished through massive institutionalised bribery. We demand compensation for the affected communities.”



The United Food and Commercial Workers Union (UFCW) of North America has decades of experience grappling with the Walmart business model in its home country of the USA, which has seen rapid Walmart expansion at the expense of smaller, often family, retailers.



UFCW President, Joe Hansen stated: “For decades, Walmart has pursued a growth-at-any-cost strategy in cities and towns across the United States and globally. In the U.S., we have watched Walmart secure the building permits, variances, and zoning changes to open its stores, in spite of concerted community opposition.”