Wal-Mart: Cheating kids out of a paycheck. Always.

This is low, even by their low, low standards:

Wal-Mart prides itself on cutting costs at home and abroad, and its Mexican operations are no exception. That approach has helped the Arkansas-based retail giant set a track record of spectacular success in the 16 years since it entered Mexico as a partner of the country’s then-leading retail-store chain. But some of the company’s practices have aroused concern among some officials and nongovernmental organizations (NGOs) that Wal-Mart is taking advantage of local customs to pinch pennies at a time when its Mexican operations have never been more profitable.

Wal-Mart is Mexico’s largest private-sector employer in the nation today, with nearly 150,000 local residents on its payroll. An additional 19,000 youngsters between the ages of 14 and 16 work after school in hundreds of Wal-Mart stores, mostly as grocery baggers, throughout Mexico—and none of them receives a red cent in wages or fringe benefits. The company doesn’t try to conceal this practice: its 62 Superama supermarkets display blue signs with white letters that tell shoppers: OUR VOLUNTEER PACKERS COLLECT NO SALARY, ONLY THE GRATUITY THAT YOU GIVE THEM. SUPERAMA THANKS YOU FOR YOUR UNDERSTANDING. The use of unsalaried youths is legal in Mexico because the kids are said to be “volunteering” their services to Wal-Mart and are therefore not subject to the requirements and regulations that would otherwise apply under the country’s labor laws. But some officials south of the U.S. border nonetheless view the
practice as regrettable, if not downright exploitative. “These kids should receive a salary,” says Labor Undersecretary Patricia Espinosa Torres. “If you ask me, I don’t think these kids should be working, but there are cultural and social circumstances [in Mexico] rooted in poverty and scarcity.”

In a country where nearly half of the population scrapes by on less than $4 a day, any income source is welcome in millions of households, even if it hinges on the goodwill of a tipping customer. And Wal-Mart did not invent the bagger program that, as a written statement from the company notes, pre-dates the firm’s arrival in Mexico, nor is it alone within the country’s retail sector in benefiting from the toil of unpaid adolescents. But in Mexico City, for example, the 4,300 teenagers who work in Wal-Mart’s retail stores free of charge dwarf similar numbers laboring unpaid for Mexican competitors like Comercial Mexicana (715) and Gigante (427). Although Wal-Mart’s worldwide code of ethics expressly forbids any “associate” from working without compensation, the company’s Mexican subsidiary asserts that the grocery baggers “cannot be considered workers.” The Mexico City government’s top labor official dismisses that contention as so much corporate hogwash. “To my mind, that is not an accurate description because the bagger is providing a service on the store’s premises that benefits the company by serving the customer better,” argues Federal District Labor Secretary Benito Mirón Lince. “In economic terms, Wal-Mart does have the capability to pay the minimum wage [of less than $5 a day], and this represents an injustice…”

The rest here. (H/t to Working Life.)

An "injustice." Yeah.

Geez… they actually claim to have a “code of ethics”?

PS: WalMart Watch has a petition you can sign to force Wal-Mart to allow the Shank family to keep their own money. You can sign it here.