Mexico's Supreme Court has ruled that Wal-Mart de Mexico, also known as Walmex, violated the country's constitution by paying workers, in part, in vouchers only redeemable at the store. Walmex is a wholly-owned subsidiary of Wal-Mart Stores Inc. (NYSE: WMT).
That's right: Wal-Mart was trying to pay its workers with gift cards. That sounds bad but it's really not quite as messed up as it seems. The Wall Street Journal reports (subscription required) that "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."
Here's what I don't understand: if the company wants to offer employees the option of being paid with store credit -- and employees want to take advantage of the offer -- whose rights are being violated?
The reality is that Wal-Mart offers compelling values on household items and, for many low-income workers, the chance to receive a portion of earnings in store credit would be a good opportunity. If it isn't, they don't have to take it!
I'm not sure why the courts needed to get involved here.
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Reader Comments (Page 8 of 8)
9-07-2008 @ 2:59PM
punxxi said...
I live in a very small twn with an extremely depressed economy, the 2 biggest employers are walmart and an indian casino. The to main industries that used to be here, logging and fishing were taken away by environmental wackos. more than half the buildings in town are empty. The average wage in this state (oregon) is 24k a year.The people here love walmart, because they can buy everything they need there, including groceries. I don't have to shop there because I have enough income to shop where I want. But I also see plenty of people shopping that the money they save on items will mean money for gas to get to work, milk money and new shoes for the family, if you are not a person that this will make a difference to, then it is easy to say bad things about the company,but the people that use it are happy to save at least 25-40% on what they buy. the jobs at wallys are entry level jobs, they are not supposed to be something to raise a family on, same as home depot, lowes, burger king etc. The people that really dis these stores are people brainwashed by unions( pyramid schemes) and people like jesse jackson who would rather pocket their money than have people get ahead in life. having a degree in economics is a great thing!
9-07-2008 @ 3:28PM
vamwolf said...
Funny thing about this case is the lawsuit was only brought by one person not a class action suit. If the program is voluntary and Wal Mart offers extra to its employees I do not see the problem. The way the program looks is that you can put a certain portion of your pay on gift cards and Wal Mart matches that amount. Therefore whatever you put into the card you actually make double the amount.
9-07-2008 @ 3:58PM
CJ said...
The courts probably got invloved because, in one way or another, WalMex probably told them to take the cards or be fired. Walmart is SO GOOD at that. Why do you think they were sued so many times for making people clock out, then stay and continue to work. I admit that I shop at walmart because of their low prices, but if I could afford somewhere else, I WOULD. WalMart has shown to not pay overtime, make people clock out and continue to work, fail to allow women to move into management positions, treat their employee's like slaves, and the list goes on and on.
9-07-2008 @ 6:47PM
INTERNATIONAL said...
MEXICO HAS SOME UNUSUAL LABOR LAWS AND BEFORE YOU TAKE OFF ON WALMART YOU MIGHT WANT TO READ WHAT IS ALLOWED. AS AN EXAMPLE A COMPANY CAN INSTITUE A PROGRAM THAT ALLOWS EMPLOYES TO BRING THEIR FOOD RECIEPTS TO THE COMPANY AND THE COMPANY WILL REIMBURSE THEM. THE EMPLOYEE GETS FREE FOOD AND THE COMPANY IS ALLOWED TO DEDUCT THE COST AS AN EXPENSE. WIN - WIN.
9-07-2008 @ 9:36PM
Toni said...
The Evil Empire strikes again,I used to work at Wal-Mart,they are the worst.I have stopped shopping there because I know 1st hand how they treat the associates,they suck.
9-07-2008 @ 11:22PM
tlove said...
wake up people , this sounds alot like a form of 401 k , if the company is putting it on the card and you are putting on some matching amount , sounds like free money to me
9-09-2008 @ 1:27PM
BILLY said...
YOU IDIOTS ARE STILL IN HERE WHINING ABOUT WALMART.NOBODY IS FORCING YOU TO WORK OR SHOP THERE.SO STOP CRYING YOU UNION ASS WIPES.MEAN WHILE I GOT TO GO DO SOME SHOPPING AT WALMART.
9-10-2008 @ 12:11AM
Beth said...
Walmart, I have to say is good.
It did not force anyone to take the gift cards. You never know, if the women were working, rather then taking home their pay checks and having their husbands use the money to buy drugs and alcohol, at least they can go and buy what is really needed for their family. Like food and household needs. Walmart, may not pay all the best, but I can personally say you can achieve big things in Walmart. If you go and move up. I know managers in Walmarts who make over 100,000+ dollars a year and they are young and do not even have a college education. They are all provided benefits, and health care. At least you can move up rather then working in a little business and working as a check out person the rest of your life and making 10 cents as a raise each year with no benefits. Lastly, Walmart helps out the small businesses and also works with businesses and local produce in your own state to help support everyone. Maybe things are cheap and made in China, but at least people can go in there and cloth their children, feed their children, and still provide some fun toys for their children. I don't think Macy's provides this for their employees and their families???
9-15-2008 @ 10:11AM
JJ said...
Wal-Mart=China Town
9-15-2008 @ 4:47PM
Sam said...
Bring it to the USA... great Idea.... I love it....
9-17-2008 @ 10:36PM
Luis said...
Walmart: you would be able to do that back in 1909. But the mexican people started the Revolution, in part because employers (patrones) like you... and the people won.
10-09-2008 @ 9:31AM
Jami said...
You want to help the American economy ?
STOP SHOPPING AT WALMART ! and oh yeah here's a novel concept BUY AMERICAN !
10-16-2008 @ 8:53PM
steven said...
Free card matching monies 15% discount
no taxes on either party---sounds like a win --win situation to me--if they had more walmarts in mexico I would think more would stay on that side of the border
10-17-2008 @ 7:01AM
dot said...
I have seen firsthand small businesses and some chain stores like Roses, Ben Franklin stores and others put out of business when Walmart came in. Also several Mom & Pop groceries that had been in existance for 2 or 3 generations. But also I have seen Walmart give jobs thus self respect to a lot of mentally and physically challenged people who could not find work elsewhere. One I know is deaf and another is learning disabled, but with this job and other aid they are able to live on their own and be a contributing person to society. You should see their smiles when you greet them. Yes Wally world is not perfect (who is?) but it is up to all of us to keep them and other businesses honest.
10-22-2008 @ 9:03AM
Irish said...
I've been watching Wal-mart for a very long time. I've predicted EXACTLY what the Wal-marts of the world would do to our economy and so far, have been spot on. Wal-mart imports cheaply made foreign products, pays employees in the U.S. minimum wage, exploits poor foreign laborers, receives tax cuts from the REPUBLICANS to continue to send business overseas, kills off ANY small businesses in their areas (because they don't have the advantages of cheap foreign laborers and cheap imported products), and have essentially corraled ALL poor and middle class into their stores because there ISN'T any place else to shop that competes financially. Wal-mart is protected by our government because they have a vested interest in our government. What part of all of this do you people not understand? Our government PROTECTS, SUPPORTS, and ENCOURAGES this monstrosity in order to keep the U.S. population in poverty. Wal-mart has crept into the household goods, pharmaceutical, grocery, banking, and now medical clinic arenas. If this keeps up, there won't be ANY OTHER PLACE to go to for ANY of these services because "Wal-mart is the cheapest." Wal-mart and our government should be held accountable for monopolizing our economy. What do we do though? We shop there because we can't AFFORD to go anywhere else! This is the perfect storm for domination of the populace less the few select billionaires laughing at our expense.
10-22-2008 @ 9:11AM
Irish said...
Wal-mart receives TAX CUTS from Republican policies to send their businesses overseas, pays Chinese employees anywhere from $ 1.50 to $ 5.00 an hour and Mexicans $ 5.00 a week to make their goods, and then has the audacity to mark products up to 80% in the stores in THOSE COUNTRIES. They don't even give the laborers decent pricing in order to buy the goods they make! Wal-mart is THE biggest most corrupt business in the world and OUR government SUPPORTS them! Who are the fools now?
10-22-2008 @ 9:11AM
Irish said...
nebraska: It is people like you that are gullible into believing that Wal-mart is doing you or any other city a "favor." Look at their balance sheets and you'll see just how much they make in order to provide the city a little "donation." They are CONTROLLING you and every CITY they enter. Small businesses are being slaughtered by this monstrosity! Wake the he** up and look at the big picture!