[WAC news alert] Wal-Mart's decision to pull out order self-serving, betrayal to own ethics
Workers' Assistance Center
March 31, 2007
Wal-Mart's decision to pull out order self-serving, betrayal to own
ethics
On March 29, workers on strike at Chong Won Fashion Inc. (CWFI) were
called for a meeting by an executive of Wal-Mart Philippines, Edwina
Reunilla. Reunilla had informed the workers that Wal-Mart is seriously
considering of not putting orders on Chong Won through its agency One-
Step-Up in New York City, U. S. Wal-Mart's decision came out following
a report by Verite-which was commissioned by Wal-Mart-to look into the
labor dispute and the ongoing strike.
The Verite's finding merely confirms the long-overdue grievances by
workers on strike-gross violation of labor rights and right to freedom
of assembly-and the earlier independent investigation by the Worker's
Rights Consortium (WRC). The Worker's Assistance Center and the union
leaders at Chong Won however has yet to receive its official copy of
the Verite's report. It obtained copy from the WRC.
While the union has yet to fully comment on Verite's finding pending
it receipt of the official copy, it however cited some of its
recommendations, amongst others that; a) For the management to
withdraw its termination to 117 workers, b) develop strategies to
ensure it cooperates with [the] course of action, c) focus on initial
meetings on conflict resolution, and meetings for collective
bargaining agreement (CBA).
None of these recommendations, however, are expected to be acted upon
by Wal-Mart considering that it abruptly decided to pull out orders
because the factory, which was reinforced by Verite's reports, is not
adhering to their policies for "Standards for Suppliers". Wal-Mart
finds it fit to quit rather than to engage further to resolve the
conflict to save itself from further constructive criticism and
condemnation here and abroad for failure to ensure one of its
suppliers to observe to their policies.
The workers on strike, however, is consistent long before that pulling
out order will not in any circumstance solved the ongoing labor
conflict, but rather an act by which self serving and saving for Wal-
Mart alone. It likewise reiterated its position in a letter submitted
on March 29 to Wal-Mart at their Philippines office in Makati. There
cannot be a solution to the problem where those involve and those
responsible for exacerbating the situation, simply quits by ending
relationship in absence of finding an effective solution to it.
Firstly, by pulling out orders it implicates that Wal-Mart does not
only failed in upholding it policies for its suppliers; but it is also
sending a strong message towards other transnational engaging business
here they could get away with any responsibilities and
accountabilities easy by ending any form relationship to factories.
This, however, does not exonerate Wal-Mart from its responsibilities
towards the workers but rather strengthens perception of its misery in
promoting their policies. In dealing with labor conflicts in country,
like the Philippines, where even the basic system to ensure protection
of labor rights is subverted, requires not only by upholding to
policies and empty talks but to actively engage to ensure this is
realized.
Secondly, when Wal-Mart decided to put orders on Chong Won late last
year it did not consider the striker's request that there should be an
agreement by way of involving workers on strike in the production
while the strike is on. It, however, ignored any suggestions for an
agreement thereby allowing Chong Won to operate its production free
hand, and in fact have other orders sub-contracted to other factories.
It also allowed hiring of contractual employees-which is in violation
of labor code to prevent scab workers to get in during on strike. It
also terminated the workers on strike for not reporting to work. Wal-
Mart's intervention and claims it is helping the worker resolve the
labor was a complete lie. It did not help nor upheld its policies on
standards for suppliers but rather it allowed being used and had
connive with the management to further violate the worker's rights.
Obviously, had the Verite not release its findings of the worst forms
of atrocities and continuing violation of labor rights, there is
little expectation that Wal-Mart would rather listen to workers. Wal-
Mart is presumably could have expected Verite's findings. The fact Wal-
Mart had earlier indirectly tolerated Chong Won's arbitrary acts by
putting orders while conducting the investigation, to pull out orders
and end relationship with the factory in an effort to save itself from
it is unacceptable for workers. It is a betrayal to their own policies
on standards for suppliers and gives precedent to other transnational
to do the same-who wanted to also be saved their selves in event of
labor disputes. This trend of systematic labor rights violation is
grossly endemic inside the Cavite Export Processing Zone (CEPZ),
Cavite. And Wal-Mart's decision rather provides precedent
justification for others instead of breaking these unjust practices.
The worker's request for Wal-Mart to retain its order should not be
seen by Wal-Mart as union's desperate plight, but rather to prove its
sincerity to protect the workers whose blood and sweat is producing
its products, and to hold them accountable. The workers and other
consumer abroad promoting protection of labor rights have all the
right to strongly condemn Wal-Mart of either indirectly or directly
part of perpetrating violation of workers rights. But to correct the
ugly image Wal-Mart has created cannot be and will never be solve by
pulling their orders out. This is superficial solution to an endemic
problem. It should be by way of effectively engaging in intervening to
resolve the labor conflict and to uphold to its words in reality; and
also to the concerns it earlier aired to President Arroyo to protect
the workers' rights.
Even if Wal-Mart pull out orders from Chong Won or came up with
agreement with the latter's agent One-Step-Up not to provide orders
for Chong Won, there cannot be assurance that this could be realized.
Since Chong Won had already changed its name to C. Woo, any agreement
not to provide them order under its old name will become moot. Wal-
Mart may have escaped and save itself from this problem, but as long
as it is engaging business in the Philippines, for them to confront
similar labor conflict is inevitable in the future. It is the practice
inside the CEPZ for factories to close down, change names and would
later re-open and receive orders from the same transnational
companies. And for Wal-Mart not to break this arbitrary practice will
worsen and tolerates these illegal practices by transnational and
factories to systematically violate labor rights.
It is also highly condemnable for Wal-Mart to commission a group
Verite to conduct an investigation-which is one of the objective is to
find solutions to the problem-for not acting the group's
recommendation. Although the union has yet to fully comment on the
Verite's report pending its receipt of the official copy, it
nevertheless proves the legitimacy and rightfulness of the worker's
demands and struggle to defend their lawful rights. In fact, the
group's finding is a fraction of the worst reality the workers are
suffering. It anyhow reflects how serious and systematic the problem
is. And the seriousness of the problem cannot be resolve by pulling
out orders, but one it to realize Verite's recommendations.
By pulling out orders and ending relationship with Chong Won, Wal-Mart
will have no business at all to intervene into the labor dispute
thereby providing them convenient excuse from any responsibilities
from the labor conflict. Once again, those who gain from these action
is Wal-Mart itself; not the workers whose families have long been
starving, who are now having difficulty of looking future jobs because
they have already been blacklisted, who have been subjected to legal
persecution by the local police, management and CEPZ, who have long
been denied of their lawful right to collectively bargain and freely
associate, who are often subjected to violent dispersal, amongst
others.
If Wal-Mart cannot realize its policies and standards in Chong Won
operating in a country where violations of labor rights are systematic
and a de facto policy, it has no right all to do business here in the
first place-much more of claiming it is adhering to its standards and
policies. Considering that the Philippines is a country where
violation of labor rights is systematic, companies like Wal-Mart
should have made sure that its Code of Conduct is observed rather than
turning a blind eye to the violations and poor working condition to
the production of its products. To ensure this become a reality should
involve proactive actions not of escaping and saving itself.
To read the report by the Workers Rights Consortium;
http://www.wacphilippines.com/wp-content/uploads/2007/03/WRC%20report.pdf
To read the letter submitted by the Nagkakaisang Manggagawa sa Chong
Won to Wal-Mart Philippines;
http://www.wacphilippines.com/wp-content/uploads/2007/03/NMCW%20letter%20to%20WalMart.doc