Friday, August 3, 2007

[Wal-mart Mexico]: 19,000 youngsters (14-16) work for tips ... none of them receives a red cent in wages or fringe benefits

Teens at Work | By Joseph Contreras | Newsweek | Updated: 2:33 p.m. CT July 31, 2007

Thousands of adolescents work as unpaid baggers in Wal-Mart’s Mexican stores. The retail giant isn’t breaking any laws—but that doesn’t mean the government is happy with the practice.

July 31, 2007 - Wal-Mart prides itself on cutting costs at home and abroad, and its Mexican operations are no exception. ... aroused concern among some officials and nongovernmental organizations (NGOs) that Wal-Mart is taking advantage of local customs to pinch pennies at a time when its Mexican operations have never been more profitable.

Wal-Mart is Mexico’s largest private-sector employer in the nation today, with nearly 150,000 local residents on its payroll. An additional 19,000 youngsters between the ages of 14 and 16 work after school in hundreds of Wal-Mart stores, mostly as grocery baggers, throughout Mexico—and none of them receives a red cent in wages or fringe benefits. The company doesn’t try to conceal this practice: ...
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... But in Mexico City, for example, the 4,300 teenagers who work in Wal-Mart’s retail stores free of charge dwarf similar numbers laboring unpaid for Mexican competitors like Comercial Mexicana (715) and Gigante (427). Although Wal-Mart’s worldwide code of ethics expressly forbids any “associate” from working without compensation, the company’s Mexican subsidiary asserts that the grocery baggers “cannot be considered workers.” ...

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