Business

Winnipeg Free Press - PRINT EDITION

Walmart has a strict warning for its suppliers

By: Staff Writer

Posted: 01/23/2013 1:00 AM | Comments: 0

A.M. Ahad / The Associated Press ARCHIVES A man stands inside the damaged Bangladesh Tazreen garment factory that was producing clothes for Walmart. A November fire killed 112 workers at the factory. (CP)

BENTONVILLE, Ark. -- Walmart Stores Inc. has alerted its global suppliers that it will immediately drop them if they subcontract their work to factories that haven't been authorized by the discounter.

Walmart's stricter contracting rule, along with other changes to its policy, comes amid increasing calls for better safety oversight after a deadly fire at a Bangladesh factory that supplied clothing to Walmart and other retailers. The fire in late November killed 112 workers at a factory owned by Tazreen Fashions Ltd. Walmart has said the factory wasn't authorized to make its clothes.

In a letter sent Tuesday to suppliers of its Walmart stores as well as Sam's Clubs in the U.S., Canada and the United Kingdom, the company says it will adopt a "zero tolerance" policy on subcontracting without the company's knowledge, effective March. 1. Previously, suppliers had three chances to rectify mistakes.

Walmart also said it plans to publish on its corporate website a list of factories that haven't been authorized to manufacture goods for Walmart.

Also, starting June 1, suppliers must have an employee stationed in countries where they subcontract to ensure compliance, rather than relying on third-party agents.

"We want the right accountability and ownership to be in the hands of the suppliers," said Rajan Kamalanathan, Walmart's vice-president of ethical sourcing. "We are placing our orders in good faith."

Walmart will hold a meeting for clothing suppliers from the U.S. and Canada on Thursday to explain the new policy changes.

Critics quickly dismissed Walmart's moves as inadequate and said the retailer needs to do more.

"It shows that Walmart is feeling a great deal of pressure in the wake of public scrutiny," said Scott Nova, executive director at Workers' Rights Consortium, a labour-backed advocacy group.

-- The Associated Press

Republished from the Winnipeg Free Press print edition January 23, 2013 B4

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.