25 July 2000

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Wal-Mart Asda will open new supercentres in Britain

Yesterday, Wal-Mart opened its first British supercentre, in Bristol. Over the next fine years, this will be followed by nine more. Keeping an assortment of more than 40,000 products, the Wal-Mart Asda supercentres are huge hypermarkets. The one in Bristol is as large as one and a half British football pitch.

The next two centres will be placed in Havant, Hampshire and Minworth in the West Midlands. Asda, which was taken over by Wal-Mart last year, says that it will invest 50 million British Pounds, equivalent to 76 million U.S. Dollars into these centres.

In the United Kingdom, the opening of the first Wal-Mart Asda supercentre has lead to an intensified price war as the company tries to take market shares from competitors. This can lead to substantial job losses in British retailing and will surely put pressure on wages and collective agreement benefits.

 At home in the United States, Asda is a bad employer, paying its workers less than unionised companies. Large number of Wal-Mart workers do not have medical insurance. Any attempts of workers to organise in trade unions are roughly attacked by management. Nevertheless, Uni-affiliated UFCW has made important inroads in the American Wal-Mart stores.

Also in Germany, labour relations are turning sour. Last week, Wal-Mart workers in the western state of Nordrhein-Westfalen were on strike for two days, to put pressure on the company to sign a collective agreement.