business news in context, analysis with attitude

Agence France-Presse repots that the Mexican Supreme Court has “compared the practices of US retail giant Walmart in Mexico to employer-worker relations during the dictatorship of former president Porfirio Diaz. Diaz served as president and absolute ruler of Mexico from 1877-80 and from 1884-1911.”

The case was brought by a Walmart employee who complained about being partially paid in vouchers that could only be used in Walmart stores.

The AFP story reports: “The practice of vouchers ‘that come from the worker's salary only to be exchanged in the management company's establishment is similar to what happened in old company stores (that existed during Diaz's dictatorship),’ the court said in its decision.

“The only difference was that under Diaz's system, workers had to pay a high price for the products they bought with their vouchers, the court added.

“But, in both cases, ‘the cost of the respective discounts were absorbed by workers, not bosses,’ the court said.

“The company stores under Diaz's dictatorship were abolished under the 1917 constitution.”
KC's View: