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Tuesday, September 13th, 2005

Wal-Mart Accused of Denying Workers' Rights

Michael Barbero/Washington Post

An American labor rights group filed a class action lawsuit today against Wal-Mart Stores Inc., alleging that suppliers in five foreign countries denied workers a minimum wage, overtime pay and the right to unionize.

According to the suit, filed in state Superior Court in Los Angeles, Wal-Mart has failed to enforce its corporate code of conduct in China, Bangladesh, Swaziland, Nicaragua and Indonesia while misleading U.S. consumers by touting its human rights record.

The suit, which must be certified by a judge before achieving class-action status, is the latest legal salvo against the giant retailer, which already faces class action suits alleging it discriminated against black truck drivers and female employees.

Beth Keck, a Wal-Mart spokeswoman, said "it's too early for us to talk about this in detail."The International Labor Rights Fund, a District-based advocacy organization, brought the lawsuit on behalf of 15 foreign workers, who contend they were subjected to illegal working conditions, and four California business owners, who argue Wal-Mart's alleged conduct amounted to unfair business practices.

Terry Collingsworth, a lawyer from the International Labor Rights Fund who is working on the suit, said the case is designed to test whether corporate codes of conduct, which retailers such as Wal-Mart require their foreign suppliers to sign, "are simply public relations devices or whether they mean what they say."

The case is likely to take years to move through the courts, but in the meantime, the case is expected to add to the growing debate about Wal-Mart's business model, which has shifted the manufacturing of everything from clothing to toys to foreign countries to cut labor costs.


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