News

India's government’s decision to allow 51% FDI in multi -brand retail was met by widespread protest today which saw shops shut up in many major cities.

UNI Global Union has vowed to take the fight to the individual states which still have the right to decide whether to apply the decision. Many states have made it clear that they will say no, citing the threat of the multinationals, especially Walmart, monopolising the market and putting local traders out of business. Gujarat, Kerala, Odisha, Uttar Pradesh, West Bengal, Madhya Pradesh and Bihar have all voiced their opposition.

• UNI says the battle to ensure that Walmart is not given carte blanche entry into India is far from over despite India’s decision to allow Foreign Direct Investment (FDI) in multi-brand retail
• UNI supports today's strike action to oppose the decision
• Local traders & manufacturers, unions, farmers and hawkers unite in opposition to FDI
• UNI Walmart Global Union Alliance to be launched next month

UNI Global Union General Secretary, Philip Jennings said, “Walmart will control prices and squeeze producers in India as it has done in the United States and everywhere where it has gained access by fair means or foul. It is facing bribery allegations in Mexico and its global practices are under scrutiny in South Africa and beyond. We will redouble our efforts at state level in India to expose Walmart’s labour practices.”

UNI says there are real concerns over the conditions set for FDI: 30 percent of goods to be sold must be sourced from local producers. However there is no mechanism to independently verify that the multinationals are applying the condition. 30 percent is itself too low and many producers will be forced out of work along with family run businesses such as mom-and-pop shops, as will many thousands of street hawkers.

UNI and its India Liaison Council will now organise meetings at state-level to inform key stakeholders that FDI without proper conditions is bad for their state and bad for India and advise them to pay particular attention to Walmart. There is particular concern that Walmart will swallow up the market if left unchecked. Therefore UNI will continue to highlight Walmart’s lamentable track record regarding pricing, sourcing and labour relations policies.

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 negative impact on local suppliers. The UNI Walmart Global Union Alliance will be launched in Los Angeles, 3rd October, in response to the company’s current global practices.

Last year India’s government was forced to roll back its decision to allow 51% FDI in multi-brand retailers because of mass protests nationwide which look set to be repeated after this latest decision in favour of FDI. Today's widespread strike action across India brought together farmers, unions, local traders and manufacturers, and hawkers all united in opposing FDI.