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May 24, 2000

WAL-MART GLOBALIZES POVERTY
Giant Retailer Exports U.S. Jobs While Importing China's Labor Standards

Scratch the surface of the China trade debate, you'll find a familiar face, Wal- Mart. The world's largest retailer is the big winner as it ships U.S. jobs to China and floods U.S. markets with Chinese goods. Wal-Mart is one of the biggest outlets for goods imported from Communist China, fifty-three percent of all Wal-Mart's imports are from China.

A look behind the smiley face reveals Wal-Mart's global reach, extensive economic ties to dictatorial regimes and anti-worker practices. The giant retailer's indifference to worker and human rights violations in China has a practical impact on U.S. workers that goes beyond lost jobs and declining living standards. Wal-Mart has imported China labor practices to the U.S.

Wal-Mart has assembled a union busting cadre that resembles a totalitarian indoctrination team to intimidate and coerce union supporters in the U.S. Following the first successful U.S. organizing program among meat department workers at a Texas Wal-Mart Supercenter, the company announced the national reorganization of all meat departments, and dispatched a "re-education" program to squash union support and bully its workers.

The trade practices fostered by the new economic order have led to the resurgence of child labor, forced labor and the systematic degradation of human work as key components of the new economy. As the world's largest retailer, Wal-Mart is distribution central.

Wal-Mart was singled out in a recent report,"Made in China: The Role of U.S. Companies in Denying Human and Worker Rights" released by the National Labor Committee. Investigators revealed:

  • Wal-Mart's garments are stitched in misery. In the Qin Shi handbag factory in Zhongshan, China, workers stitch Kathie Lee brand purses for Wal-Mart in 14 hour shifts, working seven days a week. Average wages at this plants are 3 cents per hour. In fact 46% of the workers making Kathie Lee purses actually owed the company money after a month of work. In many overseas garment shops where clothes for Wal-Mart are sewn, new employees are forced to take a mandatory pregnancy test. Workers are searched on the way in and out of factories and public access to plants is prohibited by heavily armed guards.

  • Wal-Mart undercuts union jobs in the U. S. American manufacturers have been forced to cut jobs or close doors when Wal-Mart replaces their products with imports. At Master Lock, more than 500 union workers lost their jobs when Wal-Mart dropped the company's products and switched to an offshore competitor. Brown Shoe Company workers lost their jobs when stores like Wal- Mart switched to more imported shoes.

  • Wal-Mart trades in suppression of human rights. As the world's largest retailer with more than $130 billion in yearly sales, Wal-Mart is one of the largest outlets for imported goods in the U.S. Goods coming from China, Bangladesh, Vietnam, and other oppressive countries make Wal-Mart one of the world's largest traders in human misery.

The UFCW is the largest organization of retail workers in North America, with 1.4 million members. Workers at retail food industry leaders such as Kroger and Safeway are members of the UFCW.

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