The top ranked company in the fortune 500 isn’t having a good time with its people. Loaded with about 40 cases regarding worker violations only belittles the grandiose of the behemoth. The latest news of workers being denied lunch breaks appears quite inhuman. I remember having read a case on Wal-Mart and its teething people problems. And in spite of this, its value is ostensibly larger than the GDP of many countries.
Now Wal-Mart has shown its interest in putting up an FDI in India. The recent government directive to allow FDI in retail has opened up new avenues for the retail giant, as India is a largely growing market. Rumors say that Wal-Mart is looking at partnering with Reliance, the largest private business house.
So is it that, if the deal goes through, they would have worker problems in India as well? But their bargaining power may not stand with the high degree of unionism prevalent in India. Otherwise why did erstwhile union problem free Haryana have to witness the Hero Honda fiasco?
Wal-Mart may not find India so comfortable if it’s got to employ people. Retail stores can never be fully automated, and with the zealous population of India, it might not be long before the retail conglomerate may have to rethink its strategy.
In response to this article on businessweek
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