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Wal-Mart's payment unconstitutional

A Mexican court recently ruled that Wal-Mart de Mexico's practice of paying its employees with electronic cards, valid only in Wal-Mart stores, was unconstitutional. The court likened the practice to companies paying employees with money only valid at company stores, which was common during the dictatorship of President Porfirio Díaz.

Can you really blame Wal-Mart though? Afterall, they were just trying to live up to their slogan "Save Money. Live Better." They were saving their money by keeping it in the store, and everyone knows that being paid with gift certificates is living better.

Here's the story from Reuters via The New York Times:

Mexican Court Rules Against Wal-Mart

MEXICO CITY (Reuters) — Mexico’s Supreme Court ruled Friday that Wal-Mart de México, the country’s top retailer, violated the Constitution by paying a worker in part with store cards usable only in Wal-Mart stores.

Wal-Mart de México, which is also known as Walmex and is a unit of Wal-Mart Stores Inc., gives employees electronic store cards as part of their salaries. The court said the practice harked back to exploitative wage schemes of a century ago.

For now, the ruling applies only to the worker who brought the lawsuit and will not require Walmex to stop giving store cards to other employees.

But if enough other workers decide to bring a similar case to court, the ruling could guarantee similar decisions in the future, a court spokesman said.

During the long dictatorship of President Porfirio Díaz, which ended in 1911, wealthy landowners and businessmen paid employees with special currency valid only in company stores.

Walmex said that its store card program was voluntary but that it would study the court ruling.

Posted by Taylor - September 8, 2008 03:40 PM - In The News

Comments

on sepetember 16th, HBO real sports with bryant gumbal will have a show on child labor in India.
Walmart is buying soccer balls from Regent Sports Corp. who sell walmart soccer balls under the Mitre name.
get the word out

Posted by todd - September 8, 2008 04:57 PM

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