Malawi tobacco pressured as US butts in over labour abuses

Yahoo – AFP, Jack MCBRAMS, December 1, 2019

Tobacco is known locally in Malawi as "green gold", but the southern African nation
must wrestle with allegations of child labour if the industry is to have a future
(AFP Photo/GIANLUIGI GUERCIA)

Blantyre (Malawi) (AFP) - Malawi is being forced to confront child and forced labour practices after the US restricted tobacco imports from the impoverished southeastern African nation over allegations workers including children were being exploited.

Although exports to the United States make up only a small part of Malawi's total, the US move could make it harder selling its tobacco elsewhere and has sparked anxiety among farmers who fear they will be forced to accept lower prices.

As tobacco, known locally as "green gold", is Malawi's top crop in terms of employment, foreign exchange earnings (60 percent) and tax revenue (25 percent), any trouble the sector runs into could quickly reverberate throughout the economy.

The US decision piles even more pressure on the tobacco sector, already confronted with global anti-tobacco campaigns.

The trouble began in late October. British law firm Leigh Day announced it was preparing a landmark class action case against British American Tobacco (BAT) on behalf of 2,000 Malawian farmers, including hundreds of children, for forced labour and poverty wages.

BAT, which says it "takes the issue of child labour extremely seriously", has denied any wrongdoing and noted that it buys tobacco from Malawi via international dealers who are required adhere to a code of conduct that does not tolerate child and forced labour.

The US suspended imports of tobacco from Malawi, saying it had information that reasonably indicated it was being produced using forced labour and forced child labour.

Third of children work

According to a survey conducted in 2017 by the country's statistics agency the use of child labour in Malawi is extensive. It found that 38 percent of the country’s children aged between five and 17 were working.

Although the survey did not provide specific information about the tobacco sector, it is widely acknowledged that child labour is a problem.

Betty Chinyamunyamu, who heads an association of smallholder farmers, said incidents of child labour occur despite efforts to eliminate the practice.

"In some cases, farmers may think that that is the way things are supposed to be without knowing that they are engaging in child labour," she said.

Tobacco and Allied Workers Union general secretary Raphael Sandram accused the government of dithering in addressing child labour in the industry.

"In our labour report in 2015, we raised the issue that there were some irregularities in the industry that government needed to address," he said.

"The fact that the government did not respond according to the requirements of the US government means that they delayed to act on these issues. But these issues have been there for a long time," he said.

Malawian children carrying tobacco leaves on a farm in 2009. A government survey 

conducted two years ago found that more than one in three childen work (AFP Photo/

FELIX MPONDA)

Pushing for compliance

Agriculture Minister Kondwani Nankhumwa acknowledged pockets of child and forced labour in Malawi, but downplayed the US action saying it "is not a ban, they are just pushing for compliance".

US authorities said firms wishing to import Malawi tobacco into the country will need to demonstrate it was not produced with forced labour. But what will be needed to convince US authorities and how much effort firms will be willing to take is unclear.

Nankhumwa said 80 percent of Malawi's tobacco was grown under a special scheme which is free from child or forced labour.

"So, we are only grappling with the 20 percent within which there is also some kind of compliance," he said.

The law firm Leigh Day described a tobacco farming system that puts farmers under extreme pressure.

Leaf buyers who sell to multinational tobacco firms make contracts with landowners who then engage tenant farmers who spend 10 months on the plantations. Each tenant farmer is allotted around a hectare but needs four workers to work that amount of land.

"However, the amount the tenant farmers are paid for their crop is too low for them to be able to afford to employ workers to help on the farms. As a result, they have no option but to rely on their children to work on the farms," said Leigh Day in a statement.

Bone of contention

Nankhumwa pledged Malawi would conduct the necessary policy reviews to protect the tobacco industry and bring the country into compliance with global standards.

"The government is reviewing the tenancy system, which is a bone of contention but also perceived to be catalyst for child and forced labour," he said.

Farmers -- who are starting to prepare their fields for the next planting season -- are distraught at the prospect of being squeezed further by falling prices.

"We are baffled and confused," said Alick Yagontha, a small farmer in the northern Rumphi district who has been growing tobacco for two decades and harvested 28,000 kilograms this year.

He fears there will be "no future for tobacco farming in Malawi" if prices fall.

Low-skilled worker life expectancy is five years less than for graduates

DutchNews, August 16, 2019

Photo: Depositphotos.com

Today’s new pensioners with a college or university degree will live an average of four to five years longer than those with vocational qualifications, the national statistics agency CBS said on Friday. 

Men with a degree are now expected to enjoy 22 years of retirement, while men with few qualifications will live a further 17 years, the CBS said. In addition, the life expectancy gap for men has grown a full year since the period 2011 to 2014. For women, the gap remains four years. 

Lifestyle is likely to be behind the difference, the CBS said. ‘People with a lower level of education are more likely to be overweight and to smoke,’ a spokesman told news agency ANP. They are also more likely to have hearing, eyesight and muscle problems. 

In addition, people with degrees retire, on average, eight months before the low-skilled – meaning they enjoy both a corporate and state pension for longer. 

The FNV trade union federation, which is campaigning for early retirement to be incorporated in the current proposals to reform the pension system, said the new figures demonstrate the real need for change. 

‘The growing difference in life expectancy shows that the union is right to call for the state pension age to be frozen and to scrap the fines for early retirement,’ a spokesman told ANP.

FNV members to vote on pension deal, finally agreed after nine years

DutchNews, June 5, 2019

Ministers, unions and employers have reached a deal on reforming the Dutch pension system, nine years after talks first started. 

The agreement, which still has to be voted on by members of the FNV trade union federation, involves a slowdown in the planned increase in the state pension age and gives workers the option to retire early – both of which were key union demands. 

The new deal involves freezing the state retirement age at 66 years and four months for the next two years. After that it will increase in increments until it hits 67 in 2024. 

Then onwards, the state pension age will continue to rise in line with increases in life expectancy – based on an eight month increase for every year we live longer. 

The talks had broken down last November when the unions walked out but resumed earlier this week after ministers indicated some compromises were on the table. 

For example, ministers have agreed to bring in some form of early retirement scheme which is aimed at people doing heavy physical work but which is open to everyone. 

The scheme is most attractive to people on low incomes. Employers will have to pay a fine if workers earning more than €19,000 a year quit early. The money, ministers say, will compensate for the loss of premium and tax income. 

It will also be easier for the self-employed to join a pension fund, but it will not be compulsory. 

Insurance 

However, freelancers will be required by law to take out insurance against becoming unable to work through illness. This, commentators say, was one the demands made by GroenLinks and the social democratic party PvdA in return for their support in steering the deal through the senate. 

There may be an opt-out for people who show they have sufficient reserves to support themselves. Currently just 20% of freelancers have such a policy, and the cost runs into hundreds of euros a month. 

More details about this part of the agreement are due in the coming days. 

Fund changes 

Pension funds will also have the option of offering employees two sorts of pensions – one in which the premium varies in line with interest rates and one in which funds can take more risk – and spread that risk over all participants, broadcaster NOS said. 

Although employers organisations and smaller unions have backed the new plan outright, the FNV has said it is up to the members to decide whether or not to support the new deal.

Chairman Han Busker said he expects a ‘tough discussion’ with members but said the agreement as it now stands is ‘justifiable’.

Qatar Airways says it will stop sacking women who get pregnant

Women working with Qatar Airways will not be sacked anymore if they get pregnant or marry within the first five years of employment. The airline company relaxed its rules after pressure from international labor groups.

Deutsche Welle, 27 Aug 2015

A spokeswoman for the Doha-based airline said the company had phased out the restrictions "over the past six months."

The policies included air hostesses losing their jobs if they became pregnant or married within the first five years of employment.

"Our policies have evolved with the airline's growth," a Qatar Airways spokeswoman told news agency AFP. Under the new rules, female employees who were going to have babies would be offered temporary jobs. Staff could also get married after notifying the company.

More than 9,000 cabin crew operate Qatar Airways' planes around the world. Nearly 80 percent of these are women, who have to organize their lives around their company's strict laws.

One of these includes a rule according to which female employees can be picked up from work only by their father, brothers or husband. Qatar Airways is not easing this restriction for now.

Qatar Airways has a fleet of more than
150 jets, servicing almost 150 destinations

The airlines' discriminatory policies

The airline's discriminatory policies have met with severe criticism from employees and labor unions around the world. The International Labor 

Organization (ILO) looked into the organization's rules after a complaint by the International Transport Workers' Federation and the International Trade Union Confederation.

The ILO said Qatar was a signatory of the 57-year-old convention against discrimination at work, ratified by 170 countries and that its rules dismissing pregnant women breached the international agreement.

"Protective measures should include action taken to ensure that a woman worker does not lose her job during pregnancy and that maternity is not a source of discrimination," the ILO said in its statement in June this year.

However, the airways snubbed international pressure and its chief, Akbar Al Baker said at the time, "I don't give a damn about the ILO - I am there to run a successful airline." Al Baker also said the UN agency's attitude was "evidence of a vendetta they have against Qatar Airways and my country."

The Gulf kingdom has been repeatedly criticized for its treatment of workers, especially those working to build football stadiums and infrastructure ahead of the World Cup in 2022.

mg/kms (AFP, Reuters)

World Day Against Child Labor highlights conditions on US tobacco farms

An estimated 500,000 children are working on tobacco fields in the United States, most of them in extremely hazardous conditions. World Day Against Child Labor, on June 12, aims to highlight the plight of the children.

Deutsche Welle, 13 June 2015

Celia Ortiz was only 11 when she started working on tobacco fields in North Carolina. When most children were sleeping late, watching television, or riding their bicycle during spring breaks, Celia would wake up each morning at five to harvest crops for 10 or 12 hours in extremely dangerous conditions. She worked on tobacco fields for seven years.

"When you're a child, you're out there because you need the money," she said. "It's not like you're looking for fun."

Celia is taking part in the World Day Against Child Labor on June 12 with members of the Child Labor Coalition - a group of nonprofit organizations including Human Rights Watch. The coalition gathered in Washington DC to raise awareness and discuss problems and possible solutions for the country's child labor issue.

There are four states that produce 90 percent of the country's tobacco - North Carolina, Kentucky, Virginia, and Tennessee - and in these states children as young as 7 are working 50-60 hours per week harvesting and cultivating tobacco plants, in most cases with severe repercussions. Human Rights Watch estimates nearly half a million such children work on these fields.

"This is perfectly legal in the US," says Zama Coursen-Neff, executive director of the children's rights division at Human Rights Watch. "[It is legal] because of a loophole in child labor laws that makes it legal for children to work in agriculture at far younger ages, for far longer hours, under far more hazardous environments."

June 12 is World Day Against Child Labor

Nicotine exposure

Coursen-Neff took part in an initiative that spoke to over 140 child workers across the United States. "Three-quarters of them reported frequently feeling dizzy, nauseous, or vomiting in the fields," she said.

Two-thirds of them displayed symptoms of Green Tobacco Sickness, or nicotine poisoning. This occurs when workers are exposed to wet tobacco plants, through either rain or morning dew, and contact with the plants causes their skin to absorb the toxins. This is extremely hazardous to the younger workers. "Nicotine exposure during adolescence leads to mood disorders, attention deficit, lasting cognitive disorders," Coursen-Neff explained.

For Celia, this was all too familiar. She recalls feeling the symptoms of nicotine exposure. "You get dizzy and nauseous," she said. "The world is closing in on you and you feel like you're going to die. I can't even explain it properly."

Celia says she only learned of the hazards of her work last year. "From all the years that I worked, they never informed us of the dangers and hazards. When you're young you don't know what to do."

Child workers were not given proper protection against the nicotine exposure or frequent usage of pesticide sprays on the crops, which would also fall on their clothes and skin. They were left to find their own ways of protection.

"We would put on garbage bags and put holes in them for our head and feet," Celia said. "And we didn't have rain boots so we put grocery bags over our shoes."

Humiliation and danger

The conditions grew worse as Celia worked over the years. Eventually the farmers stopped providing water to the workers. The children brought their own to stay hydrated, but that led to more complications. "Going to the restroom is another problem. You would have to go to the other side of the field just so nobody could see, just to get some privacy. It's dangerous, especially being a young lady." These lengthy trips for solitude were often met with harsh demands for faster and harder work.

"I knew it was wrong that we didn't get water," she remembered. "I knew it was wrong we didn't get restrooms. I knew it was wrong they sprayed pesticide while we were working." Even then, Celia said, there was too much fear to say anything.

"It was hard for me to speak up and say, 'Hey I'm sick please take me off the row.' Because you want to prove to adults that you can work like they can, and you want to be paid. That's the fear factor about speaking up."

The environment also presented psychological stresses of insecurities and self-doubt. "In one instance I was humiliated and belittled because I didn't do the job as well [as an adult]. I started to think, 'If I can't do this job what makes me think I can do an office job?'"

But even that office job is usually a pipe dream. "Unfortunately," explained Coursen-Neff, "the interference of their education and the negative health effects of working in agriculture in the United States perpetuates a cycle of poverty that ultimately leave children often without any other options except to continue working in the fields."

She says it's time to break the cycle. "This is a solvable problem. Children are too young to buy cigarettes, and yet right now children are working in fields in the United States being poisoned by nicotine in the fields, and these bills that are in Congress right now can do something about that."

The Child Labor Coalition is hoping to lobby for changes to the law, amendments to the Fair Labor Standards Act of 1938 that would prohibit child employment in tobacco-related agriculture by "deeming such employment as oppressive child labor."

As for Celia, she will return to work. Not in the fields, though - she did get that office job, in a bank. The hope is to turn her exception to the rule into a more common occurrence.

Five-day workweek to kick off next year under amended labor law

Want China Times, CNA 2015-05-17

Service personnel work at a restaurant in Taipei, April 21. (File photo/
Fang Chun-che)

Lin Por-fong. (Photo/ Hung His-lung)

An amendment to the Labor Standards Act in Taiwan cleared the Legislative Yuan Friday, paving the way for a five-day workweek and for working hours per week to be reduced to 40 hours.

The amendments will be put into force Jan. 1, 2016.

Under the current labor law, normal working hours per day cannot exceed eight hours and working hours per two weeks cannot exceed 84 hours. If employers are found to be in violation of the law, they will be subject to fines of between NT$20,000 (US$657) and NT$300,000 (US$9,860).

Also, employers cannot cut their workers' wages under the pretense of "adjusting" normal working hours, the revised law stipulates.

Under the current law, employers must prepare attendance books for workers and keep them for one year. The amended law states that the attendance records should be kept for five years and that employers will face fines of between NT$90,000 (US$2,985) and NT$450,000 (US$14,790) if found to be in violation.

The revised law also stipulates that the attendance records should note the hours and minutes worked. When a worker asks for a copy of his or her attendance record, employers cannot refuse them.

The amended law also allows workers to adjust their working hours according to their circumstances, meaning that employers will have to, based on the needs of workers who have to take care of their families, allow them flexibility to adjust their start and finishing times within a range of one hour without changing the normal working hours per day.

The Ministry of Labor hailed the amended law as a "new milestone" in 14 years, referring to the last amendment in 2001, when working hours were reduced to 84 hours per two weeks, saying that it puts Taiwan on a par with developed countries.

It will also help workers to maintain a balance between their work and home life, and help boost economic and social development, according to the ministry.

Indonesian Pension Contribution Set to Rise to 8% of Salary

Jakarta Globe, Siprianus Edi Hardum, Apr 09, 2015

Employees' contribution to the pension system could rise to 8 percent
from 5 percent now. (Antara Photo/Fanny Octavianus)

Jakarta. The Indonesian government plans to raise the pension contribution to 8 percent of an employee’s monthly salary starting in July from 5 percent now, said Labor Minister M. Hanif Dhakiri on Wednesday.

The plan is part of a new government regulation draft that aims to revamp the country’s pension system.

“The draft has been finalized. We are only waiting for the harmonization process at the Law and Human Rights Ministry and ratification,” Hanif said.

Hanif did not elaborate on the share of contributions by employees and employers in paying pensions. Currently, employees pay 2 percent of their salary for pension, while their employers pay the remaining 3 percent.

Indonesia started last year a universal pension program under BPJS Ketenagakerjaan, which seeks to cover pensions for all workers nationwide.

The draft includes a clause that requires employees to be in the universal pension program for at least 15 years before making use of the pensions. It also sets the pension age at 56 years old.

GlobeAsia

Related Article:

Beijing sets occupational pension standards for civil servants

Beijing sets occupational pension standards for civil servants

Want China Times, Xinhua 2015-04-07

A senior center in Yuncheng, Shanxi province, March 19. (File photo/Xinhua)

China announced detailed standards of occupational pension for government employees on Monday as a move to build a multi-level, sustainable pension mechanism.

The welfare fund, as a supplementary part of the basic pension system and commercial insurance, will require a government department to pay 8% of its total salary amount and a government employee to contribute 4% of their taxation-based salary, according to an announcement released by the State Council, China's cabinet.

The benchmark for the payment base is the same with that of the basic pension and the fund sources also include related investment yields and other legal contributions.

The fund will be left to qualified institutions such as securities houses, asset management companies an insurers to manage the pension and conduct investments.

The introduction of occupational pension is expected to retain talent as recent reforms in the basic pension system for government institutions might compromise employee welfare.

China started pilot reform programs in government organizations to require them to pay social insurance and pension funds like other private employers in 2008 to promote social fairness. Before that, government employees only had to pay income tax.

US wage hikes: real progress for workers or publicity stunt?

Yahoo – AFP, Jeremy Tordjman, 5 April 2015

A worker stands with a sign at a construction site in Washington, DC, on April 3,

2015 (AFP Photo/Nicholas Kamm)

Washington (AFP) - After turning a deaf ear to pressure for years, US businesses are digging into their pockets to improve the lot of the lowest-paid workers, but also their own images.

Faced with a mounting campaign to address a growing gap between the rich and the poor, and complaints that low wages leave workers dependent on state handouts, some of the largest US employers have announced sweeping wage increases in recent weeks.

After department store Walmart and clothing chain The Gap said they would raise worker pay, this week fast food giant McDonald's announced a hike for 90,000 of its workers.

The wave of companies showing a greater appreciation for their workforce has even spread to the tech industry. Microsoft announced it would require its contractors to extend paid leave to thousands of people that regularly work for the company but are not Microsoft staff.

The companies have made sure the public takes note. McDonald's took a full-page advertisement out in the New York Times heralding its generosity.

"We're announcing a first step in rewarding the team members who work so hard for our brand every day," it said.

Wal-Mart Stores chief executive Doug McMillon told workers that the world's largest retailer would "continue to provide that ladder that any of you can climb."

Political and market pressure

But the moves, which sought to raise hourly wages above the official minimums -- McDonald's promised it would pay an average $10 an hour by the end of 2016 -- still fell short of a national campaign calling for a $15 an hour standard.

Faced with a mounting campaign to address a growing gap between the rich and

 the poor, and complaints that low wages leave workers dependent on state handouts,

 some of the largest US employers have announced sweeping wage increases

 (AFP Photo/Frederic J. Brown)

That raised questions about whether the moves are simply a publicity effort for the firms.

The US labor union federation, the AFL-CIO, which has been fighting for higher wages for retail and food chain workers, dismissed the question.

"It's not essential to figure out whether or not they did it for good reasons. The key issue here is that it rewards months of mobilization," deputy policy director Kelly Ross said.

The companies could also be responding to fundamental economics. The US economy has been growing steadily and companies have added some 3.4 million jobs in the past year alone, tightening the jobs market somewhat.

"It is a public relations move by the companies, but it comes in a macro-economic context that is pushing up low wages," Ioana Marinescu, a labor rights expert at University of Chicago, told AFP.

Michael Strain of the American Enterprise Institute in Washington agreed.

"As the labor market become more competitive, the firms have to increase wages to attract the workers they want," he said.

At the same time, a debate has mounted over why only the wealthiest Americans have seen income gains while wages and salaries for the lowest 80 percent have stagnated or declined.

Worker groups want the government to address it by forcing up the official minimum wage.

But the political gridlock in Washington leaves the focus on companies. For several years President Barack Obama has pressed Congress without success to increase the federal minimum wage, stuck at $7.25 an hour since 2009.

The US economy has been growing steadily and companies have added some

 3.4 million jobs in the past year alone, tightening the jobs market somewhat

 (AFP Photo/Nicholas Kamm)

Nor has he been able to get enough Congressional support for other benefits common elsewhere, like a minimum paid maternity leave.

"Congress is clearly broken and won't change anything with respect to the labor market," said Jacob Kirkegaard, a researcher at the Peterson Institute for International Economics.

He told AFP that companies announcing wage increases get more than a public relations boost.

"If you pay more than the average, you'll have a higher retention rate so you won't have to constantly spend money on training new hires."

Some analysts express worry of the risk that the large firms raising wages will make business harder for small companies with less financial power.

"There's an uneven playing field," Kirkegaard said.

On Women’s Day, Workers Demand Longer Maternity Leave

Jakarta Globe, Suara Pembaruan, Mar 08, 2015

Activists rallying at the Hotel Indonesia traffic circle in Central Jakarta to
mark International Women's Day, in this file photo taken on March 8, 2013.
(JG Photo/Safir Makki)

Jakarta. As they celebrated International Women’s Day, Indonesian female laborers on Sunday demanded longer maternity leave and better access to menstrual leave.

The women staged a rally in the center of Jakarta — quiet on its weekly car-free morning — urging the government to immediately ratify the International Labor Organization’s convention on maternity protection, under which female workers are entitled to 14 weeks of maternity leave instead of 12 weeks as currently applied in Indonesia.

“A three-month maternity leave is not enough for female laborers to take care of their newborns because babies need to be breastfed exclusively [for a longer period],” Indah Saptorini, the project coordinator of the All Global Union movement for women, said during the rally on Sunday.

The protesters, comprised of female laborers from 11 federations of worker unions, also demanded an end to the controversial practice of company representatives performing a physical check before menstrual leave is granted.

“The laborers feel that taking menstrual leave is difficult because there’s a certain procedure they need to go through, and as a result many opt not to use their right to menstrual leave,” Indah explained.

The protesting women said they wanted the Ministry of Manpower and Transmigration, the Ministry of Women’s Empowerment and Child Protection and the Ministry of Health to issue a joint regulation for better maternity and menstrual leave procedures.

Retail giant Walmart to raise wages for US staff

Yahoo – AFP, John Biers, 19 Feb 2015

The biggest retailer globally, Walmart said the wage and education initiatives would

 affect 500,000 US full- and part-time staff. Salaries will be raised this year, with

another hike coming in 2016 (AFP Photo/Scott Olson)

New York (AFP) - Global retail giant Walmart, which has faced criticism over low salaries and skimpy benefits for years, announced Thursday it would raise wages for 500,000 workers in the US.

The largest private single employer in the United States said salaries for about 40 percent of its US staff would be lifted to at least $9 per hour in April, $1.75 above the federal minimum wage. By February 1, 2016, US staff will be paid at least $10 an hour.

The move follows mounting criticism by labor unions and other groups that the company's low wages have locked workers into poverty and pressured some of them to seek public assistance to make ends meet.

President Barack Obama has also made the issue of low pay and a growing income gap across the country a key focus of his economic policy.

In a video address to employees,

Wal-Mart Stores chief executive

Doug McMillon acknowledged

that "sometimes we don't get it

all right"  (AFP Photo/Alex Wong)

On Thursday, the White House amplified its call for the federal minimum wage, a base level for the whole country, to be raised to $10.10 per hour. The minimum was last raised in 2009.

"Good to see Walmart raising wages for about 500,000 employees. Now it's time for Congress to #RaiseTheWage," the White House tweeted.

In a video address to employees, Wal-Mart Stores chief executive Doug McMillon acknowledged that "sometimes we don't get it all right."

"As a team, we really wanted to demonstrate this year that we really care about you as associates and appreciate the work you do every day," said McMillon.

Last year a coalition of progressive and pro-labor groups, Americans for Tax Fairness, issued a report claiming that the government provides $6.2 billion a year in poverty-based assistance to Walmart workers because of their low wages.

The group also attacked the tax benefits earned by the family which controls Walmart, the Waltons, called the world's wealthiest family by Forbes with a $152 billion fortune.

States enacting wage hikes

The move came as a number of states have increased their minimum wages in recent years to address what economists say is a growing gap between what the average and wealthiest American households earn.

As of January, 29 states plus the District of Columbia have minimum wages above the federal standard, according to the National Conference of State Legislature.

Emily Wells, a member of OUR Walmart, an labor union-backed employee group that seeks higher wages, said she was "proud" their campaign had yielded a raise, but that more is needed.

"Especially without a guarantee of getting regular hours, this announcement still falls short of what American workers need to support our families," said Wells, who works in Florida.

"With $16 billion in profits and $150 billion in wealth for the owners, Walmart can afford to provide the good jobs that Americans need -– and that means $15 an hour, full-time, consistent hours and respect for our hard work."

But the National Retail Federation, a leading trade group, said Walmart's decision reflected the power of the marketplace as it took a swipe at policies such as government mandates to hike wages.

"Like many other retailers, Walmart made its decision based upon what is best for their employees, their customers, their shareholders and the communities in which they operate," it said..

"Government mandates that arbitrarily require businesses to implement politically driven policy are unnecessary and, in fact, create hurdles to job creation, curtail capital investment and pose as barriers to a sustained economic recovery."

McMillon told the network CNBC that Walmart would stay out of the political debate on the minimum wage.

Walmart said increased spending on wages and on a new program to promote employee education would weigh on future profits. The new program will shave 20 cents per share from earnings in fiscal 2016.

Walmart projected fiscal 2015 earnings of $4.70-$5.05 a share compared with the $5.19 expected by analysts.

Morgan Stanley said the company's outlook was disappointing, but that the wage announcement was positive "for how it should enhance morale, attract and retain labor, and lead to better customer engagement."

The wage hike could also prompt competitors to follow suit, which could give lower-income Americans more spending power, eventually feeding back into Walmart results, Morgan Stanley added.

In afternoon Thursday Walmart shares fell 2.9 percent to $83.77.

Alec has urged conservatives to launch populist campaigns against wage increases

 by adopting the mantra that higher pay hurts ordinary Americans. Photograph: 

Seth Perlman/AP

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Nestlé agrees to pay all employees living wage

Company to pay entire UK workforce – including agency and contract staff – minimum of £8.80 in London or £7.65 elsewhere

theguardian.com, Press Association, Monday 30 June 2014

Nestle becomes the largest manufacturer to sign up to the living
wage in the UK. Photograph: Laurent Gillieron/EPA

Food giant Nestlé has become the first leading manufacturer to commit to paying the living wage.

The firm already pays at least the living wage to its 8,000 staff but the move will benefit contract employees and agency workers. About 800 contractors working with Nestlé will implement it by December 2017.

The announcement was described by campaigners as a significant milestone in the drive to persuade employers to pay the living wage, which is currently set at £8.80 an hour in London and £7.65 elsewhere, compared to the national minimum wage of £6.31.

Nestlé UK & Ireland's chief executive, Fiona Kendrick, said: "We are proud to be the first mainstream manufacturer in the UK to become a living wage employer and see this as an opportunity to be a positive influence in our sector.

"As a major UK employer, we know that this is the right thing to do. Not only does it benefit our employees but also the communities they live and work in."

Living Wage Foundation director Rhys Moore said: "The accreditation of Nestlé as a living wage employer marks a significant milestone in the campaign to tackle in-work poverty. We hope that the leadership they have shown will encourage others in this industry to follow suit and improve conditions for those at the lowest end of the pay scale and sub-contracted staff.

"We are aware that Nestlé is going above and beyond the basic requirements of becoming an accredited employer, and is extending their commitment to graduate, internship and school leaver programmes."

Len McCluskey, general secretary of Unite, said: "With in-work poverty on the rise, many employers are simply ignoring their responsibility to pay staff a decent wage. They should take note from Nestlé's positive stance which shows that paying a living wage is not just good for communities but makes good business sense too."

Tim Roache, of the GMB union, said: "Nestlé have always recognised their greatest asset is their workforce and are demonstrating this with action, not just words. This shows once and for all that if one leading manufacturer can pay a living wage to all employees including young workers and those contracted out, then many more are able to do so."

The business secretary, Vince Cable, said: "I welcome Nestlé's decision and encourage all businesses to pay their staff above the minimum wage when it is affordable and not at the expense of jobs."

The shadow business secretary, Chuka Umunna, said: "It is fantastic news that Nestlé is announcing its accreditation as a living wage employer, having worked in collaboration with Unite, GMB and the Living Wage Foundation to achieve this.

"We want to see as many businesses as possible take the decision to become living wage employers, so I hope other firms will follow the strong example which Nestlé is setting."