FDI in multi-brand retail will harm India: UNI Global report

FDI in multi-brand retail will lead to widespread displacement and poor treatment of Indian workers across the production and distribution chain. It would also replace a whole set of small traders, including hawkers, middlemen and even farmers over the long term as the retailer starts sourcing overseas, global trade union federation UNI Global Union said in a report.

UNI Global has cited the business practices of Walmart in some countries, including the United States, where the retailer has tried consistently to undermine workers' interests.

''We believe that without adequate safeguards put in place, FDI in multi-brand retail will likely lead to widespread displacement and poor treatment of Indian workers in retail, logistics, agriculture and manufacturing,'' UNI Global said in its report.

The report discusses the potential effects of globalised modern retail, on four groups of stakeholders - retail workers, small retailers (kiranas and hawkers), supply chain intermediaries (wholesalers), and producers.

It examines the track record of Walmart, the largest retailer in the world, with global revenue of $421 billion in 2010, 3.5 times the revenue of the next-largest competitor.

Earlier in July, UNI Global had written formally to Prime Minister Manmohan Singh in July asking for an inquiry into retail giant Wal-Mart's operating practices in India (See: Global union wants inquiry into Wal-Mart's practices in India)