Wal-Mart and Its Workers: NOT the Same All Over the World

by CHRIS TILLY. Connecticut Law Review, May 2007.

It is tempting for U.S.-based observers to assume that Wal-Mart replicates its home-country practices and strategies in the fourteen other countries where it operates. However, that is not the case. Based on detailed evidence from Mexico and more limited evidence from a number of other countries, I show that Wal-Mart follows varied strategies on pricesetting, employee wages and benefits, and relationships with unions. It has failed to achieve rapid growth in a number of countries, lags behind European counterparts in international expansion, and has pulled out of several countries. Although Wal-Mart does consistently put strong costreduction pressure on suppliers, this does not distinguish it from competitors in many settings. Variations in Wal-Mart's practices and strategies result from differences in markets, institutions, and culture, suggesting leverage points for those who seek to press Wal-Mart and other large retailers to adopt practices friendlier to workers and suppliers.

Available for download at http://connecticutlawreview.org/archive/v39n4/Tilly.pdf