Walmart-at-the-Crossroads-FINAL-06.04.15

pay their workers unfair wages and is compelling farmers to accept an unsustainable price for their
products.
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Meat packers, for example, have not been able to recover the market share that they had
in the 1980s.
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Farmers and processors have no choice but to sell their products to Walmart because this
company is often the only buyer. According to market research, “in some states, Walmart controls more
than 30% of the grocery market in every major region.” Moreover, Walmart’s share of the grocery
market is over 50% in 29 markets nationwide.
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Walmart’s size and drive for consolidation across its
supply chain have diminished the control and power that farmers and workers previously had over their
livelihood. This lack of power has opened the door to unfair treatment of farmers and workers
throughout the Walmart supply chain.
Despite the injustices that occur in Walmart’s supply chain, the company does have an
established code of conduct that dictates the way suppliers should behave. Unfortunately, Walmart’s
inability to hold its suppliers accountable to this code of conduct has allowed for numerous cases of
discrimination in the workplace. Women, people of color, and immigrant workers, among other groups,
often experience various forms of discrimination while working for Walmart and its supply chain.
Walmart has taken some initiative to promote diversity and end discrimination in the workplace, but the
lack of independent monitoring of suppliers has contributed to numerous labor disputes.
Since Walmart has a wide range of suppliers, it might seem unrealistic to blame the company for
the labor violations that occur within its supply chain. Walmart, nevertheless, should take responsibility
for its supplier’s labor disputes because it controls so much of what transpires within its own supply
chain. Walmart’s ability to purchase goods in such large quantities has created a level of power over
suppliers unmet by many other retailers. The business strategy of buying large amounts of goods and
reselling them to customers at a lower price has encouraged suppliers to put unfair demands on their
employees to complete orders in an unrealistic timeframe and to produce goods cheaply no matter what
the cost. As this report demonstrates, Walmart has continuously failed to protect the rights of workers
in its food supply chain, and its inability to enforce a strict code of conduct has unfortunately left
multiple individuals in a vulnerable state. A commitment from Walmart to hold its suppliers
accountable to a strong labor code of conduct would most likely improve conditions for the vast
number of workers in Walmart’s supply chain.
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