30 March 2005

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Lidl reacts to criticism for wage dumping, employs Swedish transport firm

German hard discounter Lidl has reacted to the strong criticism it received for social dumping in its local transports in Sweden. The company had employed foreign companies with drivers from Latvia, who worked in violation with Swedish rules, media reports said. 

Now, the company has signed a deal with a Swedish transport firm - but of course not with the one that blew the whistle in the first place. This means that the German firm had to go to the neighbouring province instead of finding a local transporter in Halland, where the distribution centre is situated.

The managing director of the company which originally exposed Lidl for its social dumping is, however, pleased.

- Of course it is positive that a Swedish transporter gets a good contract and that this distribution of goods can be carried out in a legal way, Arne Lindén says, welcoming the deal which his neighbouring competitor has signed.

Court case on violating EU rules will continue

The court case against Lidl will, however, continue to be pursued. European Union rules allows foreign transporters to be used on a temporary basis, but here the question is about a longer term arrangement with low wages which makes competition unfair, the Swedish transporter says to local newspaper Hallandsposten.

At home in Germany, criticism against Lidl's poor employer performance is fast growing. It is noteworthy that also business media start to indicate that the hard discounter should consider changing its approach. Time and time again, UNI Commerce affiliate ver.di report on workers' rights abuses which Lidl is at great pains to try to explain. 

Headband ridicule

Confidence in the hard discounter is growing thin, particularly after the widespread ridicule it suffered after the allegations that its women workers in the Czech Republic and Poland were required to wear special headbands during their monthly periods, to be allowed to use the toilet. In general, Lidl workers do not have the right to go to the toilet except during daily breaks, something that the hard discounter has not denied.

Lidl has now ordered all its shop workers in Germany to wear a special badge hanging from a band around their necks, telling everyone how delighted they are to give good service to their customers. This is perhaps the Neckarsulm version of Wal-Mart's Bentonville cheer. Perhaps it would be better to treat the workers with respect, including allowing them to join their trade union - and go to the toilet when they need to.

 

 

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