New Study Exposes Failure in Wal-Mart’s Auditing Program

SweatFree Communities

October 10, 2008

View National release final 10'10'08.pdf

Today’s Business Week.com story entitled, “Wal-Mart Supplier Accused of Sweatshop Conditions,” cites a new study, which exposes the failure of Wal-Mart’s auditing program in a Bangladesh factory. The factory, that produces Wal-Mart children’s wear in sweatshop conditions, forces workers to lie about working conditions to Wal-Mart inspectors, thereby avoiding any scrutiny from the company.

Furthermore, Wal-Mart itself has attempted to shield the report from public view. According to Business Week, “Wal-Mart acknowledges that it urged SweatFree Communities several times not to publish its
report.”

According to the study, “Sweatshop Solutions? Economic Ground Zero in Bangladesh and Wal-Mart’s Responsibility,” the factory forces workers to toil marathon 19-hour shifts from 8 am to 3 am in order to
finish Wal-Mart orders with tight deadlines. “If any worker declines overtime, management harasses him or her mentally or physically,” says Elina, a 22-year old factory helper. The report recounts one
incident of a pregnant worker, who was refused leave, and forced to deliver her child inside the factory.

“In response to this report and pressure from our organization, Wal-Mart promises action to make this factory a model for others in Bangladesh,” said Bjorn Claeson, Executive Director of SweatFree
Communities, a worker rights organization that authored the report. “We welcome Wal-Mart’s intervention. As one of the most powerful companies in the world with enormous presence in Bangladesh Wal-Mart could have a dramatic positive impact. But the company should recognize that its own low price demands and just-in-time production system is the root cause of sweatshop conditions. To bring about substantive changes in this factory and others, Wal-Mart must be willing to change its own demands.”