Make smart financial decisions with DailyFinance

AOL Money & Finance

Human Rights Watch: Wal-Mart illegally cracked down on unions

More

The bad press just keeps on coming for the world's largest retailer. In a 210-page report called "Discounting Rights: Wal-Mart's Violation of U.S. Workers' Right to Freedom of Association," international Human Rights organization Human Rights Watch accused Wal-Mart (NYSE: WMT) of "relentless exploitation of weak US labor laws" that "thwarts union formation and violates the rights of its US workers." The report said that some of Wal-Mart's union-busting practices are legal because of weak U.S. workers' rights laws while others are blatantly illegal. According to the company's press release:

    Human Rights Watch's investigation revealed that, in most cases, Wal-Mart begins to indoctrinate workers and managers to oppose unions from the moment they are hired. Managers receive explicit instructions on keeping out unions, many of which are found in the company's "Manager's Toolbox," a self-described guide to managers on "how to remain union free in the event union organizers choose your facility as their next target.

    If workers try to organize, store managers must report it to Wal-Mart's Union Hotline at headquarters. The company responds by sending out its Labor Relations Team almost immediately to squash the organizing effort.

The report refers to a "climate of fear" created by the company's aggressive anti-union tactics. The concerns voiced in the report seem to echo previous complaints about Wal-Mart, most notably expressed in the movie Wal-Mart: The High Cost of Low Price.

While the government may intervene and tighten up laws (Such as passing the Employee Free Choice Act), Wal-Mart is probably unlikely to make any changes in its policy unless it makes economic sense for it to do so. In order for that to happen, one of two scenarios will have to emerge: 1) Millions of people stop shopping at Wal-Mart in protest of the company's labor practices. The full parking lots indicate that hasn't happened. 2) The company's hiring practices are no longer competitive and it can't find anyone to work on its terms.

Until then, it's hard to imagine why Wal-Mart would change.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA+9.528,290.26
NASDAQ-15.101,781.42
S&P 500-2.00894.42

Last updated: July 06, 2009: 03:48 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines