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Walmart Drives Down American Wages by Outsourcing Jobs

June 7th, 2012 | Travis Waldron

waldron_travis_bioWalmart’s outsourcing of jobs is driving down wages at American factories, according to a report from the National Employment Law Project. Instead of employing its own factory employees, Walmart subcontracts many of the jobs to outside companies that have histories of low wages and labor violations, the report said. “These outsourced workers laboring on Walmart’s behalf toil at the bottom of a complex hierarchy of intermediaries and in alternative employment schemes that leave them vulnerable to significant worker rights abuses and unsure where to seek redress,” said the report, which also noted that workers at multiple Walmart-contracted facilities have sued their employers for violating minimum wage laws and cheating them out of pay.

This post originally appeared in ThinkProgress on June 6, 2012. Reprinted with permission.

About the Author: Travis Waldron is a reporter/blogger for ThinkProgress.org at the Center for American Progress Action Fund. Travis grew up in Louisville, Kentucky, and holds a BA in journalism and political science from the University of Kentucky. Before coming to ThinkProgress, he worked as a press aide at the Health Information Center and as a staffer on Kentucky Attorney General Jack Conway’s 2010 Senate campaign. He also interned at National Journal’s Hotline and was a sports writer and political columnist at the Kentucky Kernel, the University of Kentucky’s daily student newspaper.

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One Response to “Walmart Drives Down American Wages by Outsourcing Jobs”

  1. Michael Belk @workplace issues Says:

    I believe in unions but this is a poor example of union leadership. I can not believe the federal and state governments are backing this. What is the message here?

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