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Wednesday, August 01, 2007

In the workplace of the future, you will pay the employer for the privilege of working
Posted by Jill | 6:22 AM
Tips-only compensation. Yes, this is in Mexico, but how long do you think it'll take for Wal-Mart to pull this kind of crap here?

Wal-Mart is Mexico’s largest private-sector employer in the nation today, with nearly 150,000 local residents on its payroll. An additional 19,000 youngsters between the ages of 14 and 16 work after school in hundreds of Wal-Mart stores, mostly as grocery baggers, throughout Mexico—and none of them receives a red cent in wages or fringe benefits. The company doesn’t try to conceal this practice: its 62 Superama supermarkets display blue signs with white letters that tell shoppers: OUR VOLUNTEER PACKERS COLLECT NO SALARY, ONLY THE GRATUITY THAT YOU GIVE THEM. SUPERAMA THANKS YOU FOR YOUR UNDERSTANDING. The use of unsalaried youths is legal in Mexico because the kids are said to be “volunteering” their services to Wal-Mart and are therefore not subject to the requirements and regulations that would otherwise apply under the country’s labor laws. But some officials south of the U.S. border nonetheless view the practice as regrettable, if not downright exploitative. “These kids should receive a salary,” says Labor Undersecretary Patricia Espinosa Torres. “If you ask me, I don’t think these kids should be working, but there are cultural and social circumstances [in Mexico] rooted in poverty and scarcity.”

In a country where nearly half of the population scrapes by on less than $4 a day, any income source is welcome in millions of households, even if it hinges on the goodwill of a tipping customer. And Wal-Mart did not invent the bagger program that, as a written statement from the company notes, pre-dates the firm’s arrival in Mexico, nor is it alone within the country’s retail sector in benefiting from the toil of unpaid adolescents. But in Mexico City, for example, the 4,300 teenagers who work in Wal-Mart’s retail stores free of charge dwarf similar numbers laboring unpaid for Mexican competitors like Comercial Mexicana (715) and Gigante (427). Although Wal-Mart’s worldwide code of ethics expressly forbids any “associate” from working without compensation, the company’s Mexican subsidiary asserts that the grocery baggers “cannot be considered workers.” The Mexico City government’s top labor official dismisses that contention as so much corporate hogwash. “To my mind, that is not an accurate description because the bagger is providing a service on the store’s premises that benefits the company by serving the customer better,” argues Federal District Labor Secretary Benito Mirón Lince. “In economic terms, Wal-Mart does have the capability to pay the minimum wage [of less than $5 a day], and this represents an injustice.”


The main difference between Mexico and the U.S. is that at least in Mexico, the labor secretary has the humanity to recognize that this is appalling. Elaine Chao would probably think this is a swell idea to get American teens off the streets and wonder why she didn't think of it first.

Of course uncompensated "teen volunteer workers" aren't completely alien to the U.S. labor market, only here they're called "summer interns." In theory they are learning skills that they can use to land paid jobs later on, but does anyone doubt that someone in a boardroom somewhere hasn't thought about doing most software development in the summertime when uncompensated help is available?

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