MRTI engages Wal-Mart over Bangladesh factory conditions

November 8, 2006

Mr. Lee Scott, CEO
Wal-Mart Stores, Inc.
702 SW 8th Street
Bentonville, AK 72716

Dear Mr. Scott:

The Presbyterian Church (U.S.A.) is a major Protestant denomination with over 2.2 million members. Our General Assembly has spoken out strongly over the years against child labor, and in support of human rights, fair wages, decent working conditions and occupational safety. This applies both to the companies in which the church's investing agencies own stock, and their suppliers. Along with other religious organizations, we also have had the opportunity to meet with Wal-Mart management about these issues.

We have been seeing very troubling reports about factory conditions in Bangladesh where clothes sold by Wal-Mart are produced. Primarily this involves the Harvest Rich factory. It is our understanding that Harvest Rich employs children and young teens who are subjected to substandard conditions. This is deeply disturbing.

A thorough inspection of the factories where clothing is sewn for Wal-Mart is warranted, and abusive conditions rectified promptly in accordance with your code of conduct. More importantly, Wal-Mart should join with the other companies using such suppliers to provide stipends to underage workers equal to the highest wages these children earned so that they and their families do not suffer. Then the children should be placed in school with their basic school costs, including uniforms, shoes, textbooks and educational supplies covered. This is the most desirable socially responsible course of action since Wal-Mart has already profited from their labor.

Finally, moving forward, Wal-Mart should remain in the factory and work together with the contractor to guarantee that the legal rights of the workers are finally respected, decent wages are paid and fair treatment is the norm. This would cost Wal-Mart very little, but it would send a clear message that the world's largest retailer expects high standards from its contractors. An example would be set that engenders pride in the company by its shareholders, customers and employees.

I look forward to hearing from you soon so that your response can be shared with members of the church, especially its Committee on Mission Responsibility Through Investment (MRTI). I thank you in advance for your attention to this important concern. Clearly, we share the same goal of eradicating child labor, and lifting up the living standards of employees who contribute to our company's success.

Sincerely yours,

Rev. William Somplatsky-Jarman
Associate for Mission Responsibility Through Investment

Cc: Ms. Carol Hylkema, MRTI Chairperson
Ms. Bernice McIntyre, MRTI Vice Chairperson
Rev. David Schilling, Interfaith Center on Corporate Responsibility