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NEWSLETTER 20, Dec 2005

Workers from Four Continents Sue Wal-Mart in US

On September 13th 2005 a lawsuit against US retail giant Wal-Mart was filed in California Superior Court in Los Angeles on behalf of workers from Wal-Mart's supply chain in different parts of the world. The workers are charging that Wal-Mart failed to meet its contractual duty to ensure that its suppliers pay basic wages due; forced them to work excessive hours seven days a week with no time off for holidays; obstructed their attempts to form a union; and made false and misleading statements to the US public about the company's labour and human rights practices.

Because Wal-Mart has a "Supplier Standards Agreement" with its suppliers that includes adherence to its code of conduct, the suit alleges that Wal-Mart has a contractual obligation to the workers, who are supposed to benefit from the workers rights provisions found in the code. As part of its obligations under the supply contract, and in its promise to US consumers, Wal-Mart says it will monitor supplier factories to ensure compliance with its code of conduct. However, the complaint states, "because Wal-Mart's system limits factory inspections to those conducted by internal Wal-Mart auditors, or relies upon consultants paid for by Wal-Mart, it is far from effective and allows rampant violations to continue."

Those bringing the suit against the retailer include garment and toy workers at its suppliers in China, Bangladesh, Indonesia, Swaziland and Nicaragua who were not paid the legal minimum wage, were forced to work overtime, and in certain cases were denied the right to organise. According to the complaint:

Workers in California are also part of the suit. As employees of California businesses that compete with Wal-Mart, they argue that they were forced to make wage and benefit concessions to allow their employers to try to compete with Wal-Mart.

It is argued that the cases from outside of the US that form part of this suit could not be heard in the workers' home countries due to fear of reprisals, lack of independent legal systems and corruption. The workers' legal team includes the US-based International Labor Rights Fund.

To read the full complaint and learn more about this lawsuit, see the ILRF website: www.laborrights.org

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