Saturday, September 06, 2008

Wal-Mart Loses Mexican Pay-Voucher Case

Wall Street Journal

Mexico's Supreme Court ruled this week that Wal-Mart de Mexico, the country's largest retailer based on sales and a unit of Wal-Mart Stores Inc., violated the constitution by paying workers in part with vouchers only redeemable for merchandise at the chain's outlets.

Wal-Mart de Mexico, also known as Walmex, gave store coupons as part of salaries. In a statement, the retailer said the program was voluntary, and "designed to help our employees acquire basic necessities." It went on to explain in the statement that under the program, Walmex would put store credit on electronic cards, and the employees could contribute a matching amount. The credit could then be used at Wal-Mart outlets throughout Mexico.

Representatives for the retailer declined to comment beyond the statement.
The case stemmed from a lawsuit filed by a Wal-Mart employee in Mexico, but details of the suit weren't available.

In its decision, Mexico's Supreme Court likened Wal-Mart's practice to exploitative labor practices in Mexico more than a century ago that led to the Mexican Revolution in 1910.........

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