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Lidl Black Book published in English by UNI Commerce and ver.di

The Black Book on Lidl has been published in English as a joint project by UNI Commerce and ver.di. It tells the stories of mainly German Lidl workers and lays bare the poor labour relations of the hard discounter. Present all over Europe, and fast growing, the discounter of headband fame is a frontrunner for walmartization of the continent's working life.

Probably the most publicized Lidl scandal was when media reported that women workers in the Czech Republic had to wear special headbands during their monthly periods, to be able to visit the toilet during working hours. Without this means of identification, they were confined to their cash registers or other work stations just like everybody else, until the next scheduled break.

Retailer of headband fame

The Czech Lidl scandal, which management denies to ever have taken place, brought unusually strong condemnation from the public, and wry smiles from competitors. Top managers from other German retail giants, who happened to participate at a meeting in UNI Headquarters in Nyon when the news broke, said that they could well believe that this has happened - but in their companies, they added, workers have the right to use the restrooms when they need to.

Although the Lidl Black Book does not tell the headband story, and whether it was really true or not has never been really verified, it does tell about other kinds of appalling management behaviour. Particularly at home in Germany, the company seems to have put in place a system of management by fear. Every worker is under suspicion, and everyone should be afraid.

No place for unions

Like in Wal-Mart, trade unions have no place in Lidl's universe in Germany. Union busting is always the rule of the day, and the amoeba-like structure that the Schwarz empire has created makes it possible to stop all attempts to put in place normal worker representation structures. But still, ver.di is making progress in organising and building union strength at Lidl.

Outside the home country, the company seems to have resigned to the reality of having to adapt to local legislation and rules. Particularly in the highly unionised Nordic countries, Lidl has therefore joined the employers' associations and is applying collective agreements. But also here, the company's crocodile teeth have started to show. It becomes ever more obvious that the hard discounter has difficulties in adapting to the culture and habits of its host countries.

Low consumer confidence

Low prices is one of the common features with Wal-Mart, but otherwise the German multinational seems to find it hard to gain customer confidence. Consumer surveys regularly show Lidl in the back of the pack, trailing far behind its multi-format and supermarket competitors. And an important thing - these are normally much better employers, engaged in constructive social dialogue with commerce unions.

It is probably no coincidence that so much is common between Lidl and Wal-Mart. When it comes to the commercial idea, Lidl is a copy of world's leading hard discounter Aldi, also at home in Germany. But to its human resource behaviour, and its behaviour towards producers and suppliers, Wal-Mart is the role model. In Europe, Lidl has in fact become a frontrunner in the walmartization of working life.

What about sweatshops, Lidl?

What one does not often hear are questions about the social responsibility in Lidl's supply chain. Whereas other leading retailers more or less successfully try to apply social responsibility codes, Lidl has not been heard speaking about it. It is good that NGOs and media keep a watchful eye on those retailers who have committed themselves to demanding decent employment and working conditions at production sites in China and other countries. It would be equally good if also Lidl, Aldi and other discounters were paid similar attention. One might uncover a lot of sweatshops, to explain the low prices.

Back to the Black Book. Its name relates to Dieter Schwarz - Schwarz meaning black - who built the company and still pulls the strings in the background. Would you like to have a copy, you can order it from ver.di in Berlin, at the contact address below: