Newsweek
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.
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: its 62 Superama supermarkets display blue signs with white letters that tell shoppers: OUR VOLUNTEER PACKERS COLLECT NO SALARY, ONLY THE GRATUITY THAT YOU GIVE THEM. SUPERAMA THANKS YOU FOR YOUR UNDERSTANDING. The use of unsalaried youths is legal in Mexico because the kids are said to be “volunteering” their services to Wal-Mart and are therefore not subject to the requirements and regulations that would otherwise apply under the country’s labor laws. But some officials south of the U.S. border nonetheless view the practice as regrettable, if not downright exploitative. “These kids should receive a salary,” says Labor Undersecretary Patricia Espinosa Torres. “If you ask me, I don’t think these kids should be working, but there are cultural and social circumstances [in Mexico] rooted in poverty and scarcity.”
[...] 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.” The Mexico City government’s top labor official dismisses that contention as so much corporate hogwash. “To my mind, that is not an accurate description because the bagger is providing a service on the store’s premises that benefits the company by serving the customer better,” argues Federal District Labor Secretary Benito Mirón Lince. “In economic terms, Wal-Mart does have the capability to pay the minimum wage [of less than $5 a day], and this represents an injustice.”
Injustice? It's slave labor is what it is. Legal, too. Win-win for Wal-Mart.
As long as this practice is legal and culturally acceptable, Wal-Mart will have no incentive to do the right thing and actually pay people. Look for a lobbying effort to make it legal to do it elsewhere. Like here.
Bottom line - it's the bottom line.
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