Mexico court rules against Walmex worker vouchers
ReutersMEXICO CITY (Reuters) - Mexico's Supreme Courtruled that the country's top retailer, Wal-Mart de Mexico,violated the constitution by paying a worker in part with storecards only usable in the chain's outlets, the court saidFriday.
Wal-Mart de Mexico, also known as Walmex and aunit of U.S. retail giant Wal-Mart Stores Inc , giveselectronic store cards as part of salaries, which the courtsaid harked back to exploitative wage practices of over acentury ago.
For now, the ruling only applies to the one worker and willnot oblige Walmex to scrap the card scheme.
But if enough other employees group together to bring asimilar case to court it could ensure all future rulings on thecard scheme would go the same way, a court spokesman said.
During the long dictatorship of President Porfirio Diaz,which ended in 1911, wealthy landowners and businessmen paidemployees with special currency only valid in company stores.
The stores, which sold goods to poor workers at inflatedprices, were banned in the constitution after labor uprisingssparked the Mexican Revolution in 1910.
"A labor contract that requires workers directly orindirectly to buy items in certain stores violates theconstitution and will be declared null and void," the courtsaid in a statement.
A Walmex employee brought the complaint to the court aboutgiving workers store cards as part of their pay.
"It is similar to the practices carried out in old-timestores where workers also received their salaries in the formof vouchers to be redeemed in the stores owned by the boss,"the court said.
The practice also used to be common in the United States,especially in the mining industry.
Walmex noted in a statement that its store card program isvoluntary, but said it would study the court ruling.
"We are a company that is committed to improving thequality of life of Mexican families ... and so we willcarefully analyze the decision of the Supreme Court and itsimplications for the benefit plans of the company," Walmexsaid.
Critics often accuse Walmex and its parent company ofpaying low salaries and of being hostile to unions.
The Mexican unit of Wal-Mart employs over 150,000 peopleacross the country at its more than 1,000 retail outletsranging from supermarkets to clothing stores and restaurants. (Reporting by Mica Rosenberg and Chris Aspin; Editing by DerekCaney)