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Walmart-at-the-Crossroads-FINAL-06.04.15

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ILRF confirmed th<strong>at</strong> <strong>the</strong> USDA had opened an investig<strong>at</strong>ion into <strong>the</strong> case to determine if <strong>the</strong> numbers<br />

had been manipul<strong>at</strong>ed by ei<strong>the</strong>r Narong, <strong>Walmart</strong>, or some third party. Findings of <strong>the</strong> investig<strong>at</strong>ion<br />

were not public <strong>at</strong> <strong>the</strong> time th<strong>at</strong> this report was written. The Global Aquaculture Alliance (GAA) also<br />

responded to <strong>the</strong> media coverage, sending an auditing team to <strong>the</strong> facility shortly after <strong>the</strong> report was<br />

released.<br />

396<br />

GAA reported th<strong>at</strong> it found no compliance issues in <strong>the</strong> follow-up audit. Importantly,<br />

<strong>Walmart</strong> never released <strong>the</strong> findings of <strong>the</strong> original audit th<strong>at</strong> raised concerns, and <strong>the</strong> GAA did not<br />

address any of its auditing procedures called into question during <strong>the</strong> investig<strong>at</strong>ion.<br />

Cases of modern-day slavery and forced labor are not isol<strong>at</strong>ed to Asia. In <strong>the</strong> U.S., immigrant<br />

guest workers with H2-B visas <strong>at</strong> C.J.’s Seafood in Louisiana went on strike to protest extreme and<br />

“These circumstances<br />

included being forced to<br />

work 16-24 hours in a row,<br />

being locked into <strong>the</strong> factory,<br />

being thre<strong>at</strong>ened with<br />

be<strong>at</strong>ings unless work was<br />

completed faster, and being<br />

thre<strong>at</strong>ened with injury to<br />

<strong>the</strong>ir families in Mexico if<br />

<strong>the</strong>y complained to any<br />

government agencies.”<br />

unlawful working conditions in June 2012. These circumstances<br />

included being forced to work 16-24 hours in a row, being<br />

locked into <strong>the</strong> factory, being thre<strong>at</strong>ened with be<strong>at</strong>ings unless<br />

work was completed faster, and being thre<strong>at</strong>ened with injury to<br />

<strong>the</strong>ir families in Mexico if <strong>the</strong>y complained to any government<br />

agencies.<br />

397<br />

The average wage <strong>at</strong> this factory was also found to<br />

be 42 percent less than legally required.<br />

398<br />

The U.S. Department<br />

of Labor fined C.J.’s Seafood $34,000 and determined <strong>the</strong><br />

company owed $76,608 in back pay to 73 workers for<br />

underpayment of wages and was liable for an additional<br />

$70,014 in liquid<strong>at</strong>ed damages, $32,120 in civil damages for<br />

overtime viol<strong>at</strong>ions, and $35,000 for willful H-2B viol<strong>at</strong>ions.<br />

399<br />

After this situ<strong>at</strong>ion came to light, <strong>Walmart</strong> suspended C.J.’s Seafood as a supplier.<br />

<strong>Walmart</strong> claims th<strong>at</strong> it is concerned about <strong>the</strong>se extensive problems in <strong>the</strong> seafood supply chain<br />

and says it has an independent audit process to hold suppliers accountable to its code of conduct.<br />

400<br />

The exploit<strong>at</strong>ion of workers th<strong>at</strong> continues in <strong>Walmart</strong>’s seafood supply chain, however, underscores<br />

th<strong>at</strong> this system has failed. <strong>Walmart</strong> should increase supply chain transparency and establish third-party<br />

monitoring th<strong>at</strong> includes workers and <strong>the</strong>ir organiz<strong>at</strong>ions as a means of improving <strong>the</strong> labor conditions<br />

in its seafood supply chain.<br />

Page !77

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