"Wal-Mart prides itself on cutting costs at home and abroad, and its Mexican operations are no exception. That approach has helped the Arkansas-based retail giant set a track record of spectacular success in the 16 years since it entered Mexico as a partner of the country's then-leading retail-store chain. But some of the company's practices have aroused concern among some officials and nongovernmental organizations (NGOs) that Wal-Mart is taking advantage of local customs to pinch pennies at a time when its Mexican operations have never been more profitable."

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That's nuts!

Not sure what's nuts about it, or why there's a "thumbs-down" accompanying the post. If Wal-Mart was required to pay these kids, they'd tell them to go home, instead.

And then who would be better off? Wal-Mart? No. The kids or their families? No. The customers? Maybe, but only if you assume they that the exchange is not voluntary, and in which case all bets are off. Otherwise, if the kids want to be there, Wal-Mart wants them there, and the customers want to tip for the service, more power to them.

Economic freedom - the voluntary exchange priciple. All parties to the transaction are better off after than they were before. Otherwise, they wouldn't have conducted the transaction. People are rational and selfish - at least en masse. They do what's in their own self-interest.

Further, this is a perfect example of why the minimum wage is such folly - it denies opportunity to those who have the least of it. The minimum wage ought to be exactly $0.

Actually, if you spend any time in Mexico you would know that this is a common practice - this is not something that Wal-Mart has suddenly made up. Just because they are a big US company they shouldn't do it, but the mom and pop shops get the blind eye by government officials??? Hmmmmmm........

If the minimum wage in Mexico is less than $5 per day, I figure the kids make more in tips.

I have only been to Cancun and Cozumel in Mexico, but I remember any little thing they did for you was followed with their hand out for a tip. Which I had no problem with; they did me a favor and they really need the money. That's the way they do things over there; just because we don't in America doesn't mean we force our customs on them.

We had the same experience in Acapulco, Nanwa. We left Wal Mart and we were flooded with kids offering to take our bags to the taxi....

Actually I see this all the time here in Cincinnati as well. Biggs (a competitor of Wal-mart) has some lines where they bag for you, and some lines where you have to bag for yourself. Oftentimes, different community organizations (cheerleading squads, honors societies, sports teams, etc.) will volunteer bagging at the U-Bag lines and work for tips.

My dad works for a large international company that has some centers in Mexico. He goes there often and says it's very commonplace (although his company pays the employees). Also, employers very often cover meals while at work, too (like a free cafeteria/buffet every day for lunch and dinner).

They actually did some studies and the employees prefer the food to a raise...

You guys are awesome! Seriously, I love your comments. Most of them are very thought provoking.

Thanks!

Personally, even though I gave it a thumbs down, I'm still on the fence about this.

Baggers at US military commissaries rely only on tips.