Californian action accuses retailer of failing to monitor overseas factories
Wal-Mart was slapped with a lawsuit yesterday accused of failing to monitor labour conditions at overseas factories.

The suit seeks class-action status and also claims Southern California grocery workers were harmed because Wal-Mart's low prices - made possible, the plaintiffs say, by substandard overseas factories - forced competing grocery chains to cut wages and benefits.

The lawsuit was filed on behalf of two classes of plaintiffs. The first includes factory workers in China, Bangladesh, Indonesia, Swaziland and Nicaragua. The second group includes California grocery workers at stores such as Ralphs and Vons, who saw their wages and benefits cut amid competition from Wal-Mart.

The court action has been organised by the Washington-based International Labor Rights Fund, which says it has compiled tales of forced overtime, denial of minimum wages and even violence against workers.

Wal-Mart said it has not seen the law suit, but has started to research the issues it raises.

According to the lawsuit, the acts violate Wal-Mart's own code of conduct, which prohibits such acts by overseas suppliers. The suit seeks a jury trial and unspecified compensatory damages.

Paul Blank, campaign director at lobbying body WakeUpWalMart.com, said: 'This lawsuit demonstrates that Wal-Mart is not only leading the race to the bottom in the US, but is leading the race to the bottom around the world.'

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