17 February 2005
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Secret sweetheart deal
between Wal-Mart and the Bush Administration: Labor Department warns company in advance of inspections and audits, keeps quiet about rights violations, Is there a secret sweetheart deal between Wal-Mart and the George W. Bush Administration? A recent affair where the company was caught for illegally employing teenagers in dangerous jobs seems to confirm this. Leading American politicians and at least one of the U.S. States involved - Connecticut - are now asking for this to be investigated. Wal-Mart was recently fined by the U.S. Department of Labor for having illegally used teenage workers to do dangerous jobs. Sixteen to seventeen years old teenagers in three U.S. States were used by the company to operate dangerous equipment, including scrap paper balers, fork lifts and chain saws. This is in contravention with the U.S. Fair Labor Standards Act. One of the young workers was injured while operating a chain saw. According to the New York Times, the Labor Department had given Wal-Mart a 15 days notice before any additional investigations or audits would take place, and then an additional 10 days to correct any violations. "phone a thief to give him time to leave a crime scene" "Just as the police wouldn't phone a thief to give him time to leave a crime scene, the federal government shouldn't slow-walk these types of investigations", said U.S. Senator Christopher Dodd (D-Conn.) to the Hartford Courant. The Connecticut State authorities are outraged about what they see as a refusal by the U.S. Department of Labor to disclose information about their deal with Wal-Mart. The fines settlement of 6 January was not made public until a journalist found out about it. "The federal Department of Labor
seems to be stonewalling us, and this runaround is outrageous and
inexcusable," Connecticut Attorney General Richard Blumenthal said
to the Hartford Courant,
a leading Connecticut newspaper. "secret arrangement between Wal-Mart and the Bush administration" “I am very concerned about this secret arrangement between Wal-Mart and the Bush Administration,” said U.S. Representative George Miller (D-Calif.), the senior Democrat on the House Education and the Workforce Committee. “This is a company that has been
accused of a lengthy list of labor violations. Wal-Mart does not have
the credibility to serve as an impartial investigator of accusations of
labor violations against itself. I intend to find out how this
arrangement was reached and, if appropriate, I will consider asking
Congress to rescind the agreement if it cannot be justified." "It appears to put Wal-Mart in a privileged position" Former Labor Department officials are raising their eyebrows when they look at the close relations between the George W. Bush administration and the retail giant from Arkansas. John R. Fraser, the government's top wage official under the first President Bush and President Bill Clinton, said to the New York Times that the advance-notice provision was unusually expansive. "Giving the company 15 days' notice of any investigation is very unusual," he said. "The language appears to go beyond child labor allegations and cover all wage and hour allegations. It appears to put Wal-Mart in a privileged position that to my knowledge no other employer has." In a comment to the New York Times, the Bush Labor Department tries to defend itself, saying that the 15 day notice applies only to child labour violations... Last year, Wal-Mart was a major contributor to the Republican Party.
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