22 February 2007
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Wal-Mart managers' India visit clouded by shopkeeper protest Wal-Mart continues to receive a less than enthusiastic welcome in India. Michael Duke, vice chairman in charge of international operations, arrived in the country this week, to prepare the American retail giant's planned market entry. The Bentonville executive was left in no doubt about the feelings generated by his company as protesting demonstrators marched on government buildings in New Delhi, burning a Wal-Mart effigy in the process. Wal-Mart's intention is to enter the huge Indian consumer market through a joint venture with telecom operator Bharti. This has widely been seen as a way to circumvent the country's restrictions on foreign direct investment in the retail sector rather than a real alliance between the companies, such as other multinational retailers are reportedly preparing. The Bentonville, Arkansas based supermarket operator has encountered serious opposition after it announced its plans to open shop in India. Local businesses, community organisations and political leaders have joined in cautioning the government against letting Wal-Mart enter the country's retail sector through the Bharti cooperation. India's most influential political leader, Congress Party President Sonia Gandhi recently joined the critics, suggesting that the government should better take another look at the Wal-Mart - Bharti plans before approving of them. With her own party leading the Manmohan Singh government, this should be a rather clear signal for them. The Indian shop workers surely don't need Wal-Mart with its brutal social dumping approach to employment conditions and labour relations. The company must wake up and change its human resource approach. Only after that can Wal-Mart expect a more favourable reaction to any global expansion steps.
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