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Wednesday, August 1, 2007

WalMart Profits From Slave Labor

WalMart customers have only one goal in mind: to save money. WalMart's objective is apparently the same. It has been reported that WalMart makes use of unpaid teenage labor in it's Mexico stores. According to Newsweek, WalMart is the largest private sector employer in Mexico. Despite the positive economic impact, teenagers ranging from ages fourteen to sixteen are employed at Mexico WalMart's after school, mostly as baggers for free! The company stated that they are not to blame. WalMart said that its a cultural reality in Mexico; a nation with a large population in search of any job opportunity (in this case, employees survive off of customer tips). This is yet another PR craze for WalMart. It will be interesting to see how this plays out. Its absolutely ridiculous to use slave labor anywhere! There must be more to this story... WalMart obviously had to know this is going on... why not change it before media gets hold of this story. They know the consequences; investors, customers, and others will blame WalMart... not the Mexican culture. I like WalMart because of their business model but not for any other reason. The company has a major problem with ethics which ruins their brand (known for poverty level wages). I always say... you never hear bad news from Target. WalMart should learn from their biggest competitor. In response, the Mexican government is closely examining this practice.

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