Showing posts with label Wal-Mart. Show all posts
Showing posts with label Wal-Mart. Show all posts

Wednesday, February 12, 2014

A Wal-Mart manager tells why Wal-Mart sucks

Summary: Walmart pays its managers bonuses based on how much fat they can trim from hours and payroll, and how much juice they can squeeze from employees on part-time shifts.

Conclusion: Wal-Mart is designed to be a terrible place to work, and shop. They're just betting you're too poor, or live too far away from another store, to opt for an alternative.

This manager's final advice intrigued me:

I just want to add that if you really can't afford to shop anywhere but Wal-Mart, buy as much stuff on clearance as possible when you do have to shop there. All of our clearance items are sold at a loss to the store. If you buy more clearance items, we lose profit. And it helps the associates suffer less at work, because sorting clearance items is a pain in the ass. That is all!

UPDATE (13.02.2014): You should also check out this article from a couple days ago, "Walmart's Labor Practices Backfire," about how some stock analysts are downgrading Walmart because of its understaffing, among other problems.

UPDATE (14.02.2014): Another reason why Walmart sucks: it has been linked to cities with higher crime. Said the study's co-author David Pyrooz: 
"Counties with more social capital -- citizens able and willing to speak up about the best interests of the community -- tend to have lower crime rates. Counties with more crime may have less social capital and, therefore, less ability to prevent Walmart from building."

By Hamilton Nolan
February 11, 2014 | Gawker

Friday, November 8, 2013

Largest civil disobedience in Walmart history for living wage

Solidarity with our fellow Americans in Walmart!

Let's recall that under $12,000 for a single person without children is a poverty wage. 

Walmart workers engaged in civil disobedience to receive $25,000, less than the median wage in the U.S. right now.


By Kathleen Miles
November 8, 2013 | Huffington Post

Sunday, October 6, 2013

Obama-scare?: Wal-Mart restores 35,000 full-time jobs

BOO!  Obamacare's gonna get ya!

But not if you work at Wal-Mart!?....

Can't believe I missed this story back in September.  Better late than never!....

Pentagon is largest U.S. employer

Yes, the federal government is too big, and this proves it: the Pentagon has 400,000 civilian employees! 


This is not counting the 700,000 or so civilian contractors who also work for the Defense Department.

Nor does it count, of course, our 1.4 million active-duty members of the armed services, and 850,000 reservists and National Guard troops.

So altogether, about one percent of the U.S. population works for the Pentagon.

That may not sound like a lot, but that makes it America's largest employer with about 3.3 million. By comparison, America's largest private employer Walmart has only 1.3 million workers.

Furthermore, the Pentagon's annual "income" from taxpayers dwarfs Walmart's in the U.S. by 25 times: $682 billion vs. $27 billion!  (2012 figures).

So why aren't my fellow Americans in the Tea Parties complaining and agitating to shrink America's bloated defense budget?  

P.S. -- To head off some predictable retorts, first check out this fact sheet from the Center for International Policy, "Myths vs. Realities of Pentagon Spending."

Wednesday, August 21, 2013

It's about total compensation

Today it's a three-fer, since each story is about the same thing: the consequences of low U.S. wages and the absence of benefits.

First, my man Harold Meyerson notes that low wages paid by big retailers and fast-food joints are now hurting big retailers and fast-food joints, because low-paid workers don't have money to buy stuff.  (Duh).  Furthermore, Meyerson makes the interesting observation that we've gone back to the pre-WWII era, before big retailers like Federated and Macy's actively backed New Deal-era reforms like the minimum wage, unemployment insurance, 5-day workweek, unions, and co-op banks. Back then, businessmen understood that a healthy middle class was in their own best interest. 

It seems we've forgotten, once again, what actually makes America go. (I blame this all on the historically amnesiac Tea Parties, who don't care about anything that happened in America between 1789 and 1980.)

Next, Heidi Moore reminds us that our recent focus on the minimum wage, while correct, actually obscures the key issue: total compensation.  Wages could theoretically stay flat, but if more employers were to offer health insurance, paid sick leave, vacation and a retirement plan, then wages wouldn't need to be as high.    

Moore also observes that low total compensation, historically speaking, has put a record-high strain on government poverty programs such as food stamps. So, with corporate profits at an all-time high and compensation at an all-time low, welfare becomes a subsidy for Big Business.  (Wal-Mart has long been the national poster child for forcing its employees to go on welfare).

Finally, Sarah Kendzior points out that the feminist debate over whether women should work or stay at home is all rather quaint, considering that women, just like everybody else, make such decisions based on hard economic realities. Paradoxically, due to the high cost of child care, it is often cheaper for a woman to stay at home rather than work; yet staying at home allows her skills to degrade, or at the very least carries a stigma with potential employers when she tries to re-enter the workforce. Educated, qualified women excluded from our workforce reduces our nation's overall productivity. 

So once again, the answer is for Big Government to step in and mandate paternity leave, provide free or subsidized daycare, and make giving birth at a hospital cheaper, so that young families don't start off in debt.  Because the free market has failed to address these failures.


By Harold Meyerson
August 21, 2013 | Washington Post

By Heidi Moore
August 20, 2013 | Guardian

By Sarah Kendzior
August 19, 2013 | Al Jazeera

Wednesday, July 17, 2013

Meyerson: Cities resist the 'Wal-Mart-ization of work'

Meyerson's point about Southern regional wages being imposed on Northern workers is especially interesting: "Wal-Mart’s goal is to erase that North-South difference by making every place the South."

For what it's worth, I'm 110% behind the DC city council's decision to require big box stores to pay their workers a living wage!  Where Wal-Mart go, wages go down.  It's been proven.  Let's hope DC's mayor doesn't veto the council's profile in courage!


By Harold Meyerson
July 16, 2013 | Washington Post

For Republicans who want to cut the number of food stamp recipients, here’s a helpful suggestion: Support the ordinance passed last week by the D.C. Council, which required big-box stores like Wal-Mart to pay their employees at least $12.50 an hour.

On average, Wal-Mart pays its workers $12.67 an hour — which means that a huge number of its 1.4 million U.S. employees make a good deal less than that. By paying so little, the Bentonville behemoth compels thousands of its employees to use food stamps to feed their families and Medicaid to pay their doctor bills. It compels taxpayers to pick up a tab that wouldn’t even exist if the company paid its workers enough to get them out of poverty.

How many such workers go on the public rolls? Some states occasionally survey where those employees work, and Wal-Mart almost invariably tops their lists. An Ohio tally in 2009, for instance, found that 15,246 Wal-Mart workers were Medicaid recipients and 12,731 were on food stamps. (McDonald’s came in second in each category.)

Last week’s vote by the D.C. Council was just the latest round in the ongoing battle over whether Wal-Mart can open stores in the nation’s largest Northeastern and West Coast cities. The chain has encountered fierce resistance as it has sought to move into New York, Los Angeles, Chicago, Boston, San Francisco and now the nation’s capital. Elected officials in those cities have feared that America’s largest low-wage employer would compel long-established local retailers — most particularly, unionized supermarkets — to lower their wages.

A study by the Center for Labor Research and Education at the Berkeley campus of the University of California found that the opening of just one Wal-Mart store in a county where there previously had been none lowered the wages of general merchandise employees in that county by 1 percent, and grocery employees by 1.5 percent. The counties surveyed did not include those that encompassed the largest East and West Coast cities, where the gap between Wal-Mart’s wages and those of other supermarkets is greatest. But just the possibility that Wal-Mart might receive the go-ahead to open stores in Los Angeles in 2004 compelled that city’s supermarket employee union to accept a management demand to establish a markedly lower pay scale for new hires. When subsequent public opposition to Wal-Mart’s entry kept the chain largely out of L.A., the lower pay scale was eliminated the next time the union’s contract was renegotiated.

With Wal-Mart repeatedly failing to gain entry into the nation’s largest and most lucrative consumer markets, its investors might wonder why the company insists on maintaining its one-size-fits-all pay scale. Sam Walton founded and built the business in the rural South, where both the cost of living and the average pay levels were the lowest in the nation. However, it has not significantly adjusted its pay levels to accommodate the higher costs of living that workers in the nation’s priciest cities must bear. Twelve bucks an hour goes a lot farther in Bentonville than it does in Brooklyn. The executives at Costco, Wal-Mart’s closest competitor, know how to run a profitable discount chain that pays workers well: Its average hourly wage is just over $19. That’s why there are Costco outlets in the cities where Wal-Mart is still on the outside looking in.

By one measure, Wal-Mart’s insistence on bringing Southern wages north contradicts the spirit of Southern regionalism on which many of America’s (and now, the world’s) largest companies have come to rely. Knowing that both the cost of living and wage scales are lower in the South, and that Southern states’ right-to-work laws effectively blocked workers’ efforts to form unions, Northern manufacturers began opening plants there decades ago.

Wal-Mart’s goal is to erase that North-South difference by making every place the South. It commands such a large share of the nation’s retail sector that it has compelled its suppliers to lower their own pay scales all along its supply chain to provide lower-cost products.

So, high-wage manufacturers say they have to go south, while low-wage retailers say they have to go north. In aggregate, the corporate message to Northern workers is: Heads, I win; tails, you lose.

That’s why last week’s vote by the D.C. Council has more than just local importance. Requiring the District’s big-box stores to pay a living wage ensures that incomes in this high-cost city won’t be dragged down to the level of those in the low-cost rural South. The council’s vote isn’t the final word: D.C. Mayor Vincent Gray still could veto the measure. But with working-class incomes everywhere spiraling downward, he might conclude that the Wal-Mart-ization of work — and income — must be stopped at the District line.

Saturday, January 19, 2013

The irony of Walmart's health exchanges

Irony can be pretty ironic sometimes. Take Walmart. Its profitable business model requires hiring only part-time workers and paying them minimum wage with no benefits -- including no health insurance.

Now Walmart wants to open its own "health insurance exchange" under Obamacare. Walmart already runs its own medical clinics and pharmacies.

When it comes to using Walmart's buying power and marketing power to negotiate with insurance companies to give its customers a good deal on health insurance, that's just dandy and a valid reason for Walmart to flex its free-market muscles.

So why can't Walmart do the same for its own employees' benefit? In state after state, impoverished Walmart employees receive more Medicaid and food stamp benefits than any other company. That's right: U.S. taxpayers subsidize health coverage for Walmart's employees by Walmart's design; meanwhile, Walmart plans to turn around and sell health coverage to U.S. taxpayers. Huh-what?!

And Walmart's opening health insurance exchanges at its stores is doubly ironic, because the same "free-market" forces that allow it to negotiate cheaper insurance for its customers, are exactly the same forces that would allow the U.S. Government, under a single-payer health insurance system, to win even better deals for all of us. But then that would be goddamn "socialism."  Whereas it's "capitalistic" to overpay for the same thing.

And oh, by the way, the Walton family that controls Walmart is wealthier than the bottom 40 percent of Americans, combined. God bless America!  

P.S.  Read Ralph Nader's recent wonderful open letter to Walmart CEO Mark Duke here.


Wednesday, December 26, 2012

The ONLY way to end gun slaughter

OK, so here's some sobering reality for those on the Left who think that banning some assault-type guns or large magazines will do much to prevent gun crime and shootings rampages.

Unfortunately, U.S. history has proven that firearms producers are quite adept at dealing with changes in state and federal law and they can easily adapt their firearms' designs to be legal and yet retain a lot of their killing power.

So what is the solution then?  "You do not partially treat an aggressive cancer," answers Cooper.  Read on!....


By Douglas Anthony Cooper
December 26, 2012 | Huffington Post

Thursday, October 4, 2012

Solidarity with people of Walmart!

People of Walmart, we stand with you!  (Not you people of Walmart, them.)


Granted, it's only about 70 Walmart employees across several stores in the LA area... so far. Nevertheless, it's the first employee strike in Walmart's 50-year history. And none of them are unionized, since Walmart has thwarted unionization of its people at every turn.  These employees have guts.

What's interesting is that Walmart somehow continues to do business overseas, but over there, its employees are mostly unionized:

"Anyone who goes against management, you're pretty much putting a target on your back. They intimidate you by cutting hours or picking on you in any way they can," [one employee, a single mother of five children] said.

On the same day as the strike, about 80 foreign Walmart workers gathered in downtown LA to launch the UNI Walmart Global Union Alliance.... While Walmart in the U.S. remains free of labor unions, the retailer's workers elsewhere in the world are largely unionized.

Hmmm.... So what's good for Walmart's employees outside the U.S. is too good for its U.S. employees?  


By Kathleen Miles
October 4, 2012 | Huffington Post

Monday, October 1, 2012

Baker: 'Tough on China' = Tough on U.S. business


Good point:

[I]f Romney or any other president were to crack down on China over its currency, not only would he be forced to first overcome the opposition of the firms that directly profit from the over-valued dollar, he would also have to overcome the objections of many powerful corporations who want their own issues with China to be given priority.

In short, the issue is not really one of finding a president who is prepared to stand up and be tough against a cheating China, the issue is finding a president who is prepared to stand up and be tough with US corporate interests. Romney can certainly blame President Obama for not taking the tough stand against US corporations in his first term. The question is whether there is reason to believe that Romney would be any tougher on his friends and former business partners.  


Romney's ads claim that he will declare China to be a currency manipulator and take retaliatory measures.
By Dean Baker
October 1, 2012 | Al Jazeera

Friday, August 10, 2012

Coordinated international complaints about Walmart's supply chain

I'm pleasantly surprised at how savvy Thai labor rep's are.  Here's an awesome quote:

"Globalization for the working poor of the world means that American warehouse workers today have more in common with factory workers in Thailand's shrimp and pineapple factories than with the one-percenters in their own country who profit from their labor.  [ That might blow your mind but it's undeniably true. - J ]  Hyper-exploitation is the global labor standard Walmart has chosen to pursue.  This just means the fight for justice for Walmart's workers is that much bigger. Thailand may seem far away to the Walton heirs, but we are going to bring the plight of Thai workers to the suburbs of Arkansas. You bring home the profits, you bring home the struggle too," said Chancee Martorell, executive director of the Thai Community Development Center, representing the Thai workers.

Blame and shame -- often that's what it takes to get corporations to at least pay lip service to corporate social responsibility and responsible supply chains.  


August 9, 2012 | Warehouse Workers United


Wednesday, December 24, 2008

Why Wal-Mart is so cheap?

That's $640 million in consumer discounts!  Thanks for screwing 'em, Wal-Mart, my new flat screen TV is great!

Wednesday, March 26, 2008

Wal-Mart: Corporate welfare queen

The journalist quoted at length in this article, David Cay Johnston, is the author of the must-read book "Perfectly Legal."


Small Business Forced to Close by Gov't. Subsidies to Wal-Mart

By Sherwood Ross
March 25, 2008 | Political Affairs Magazine

Small retailers the nation over are being pushed out of business by government subsidies to chain competitors such as Wal-Mart and Target through a variety of "corporate socialism" schemes, taxation authority David Cay Johnston says.

Municipalities are permitting "tax increment financing" that allow the big chains "to keep the sales taxes that you are forced to pay at the tax register," Johnston said on the television interview program "Books of Our Time," sponsored by the Massachusetts School of Law at Andover and broadcast by Comcast.

"Instead of that money going to the schools and the fire department and the police department and the library, it is funneled through a mechanism of local government, usually a special authority, to finance the purchase of municipal bonds so that means that the wealthy underwriters and the lawyers and auditors all get a piece of this money to buy the land and build the store," Johnson told TV host Lawrence Velvel, dean of the law school.

The store is then leased to the big chain developer "at terms that amount to giving it to them for free or nearly free over a period of time," Johnston said, "and it's destroying local business." An amazing aspect of this "corporate socialism" policy, Johnston says, "is that local business owners have not risen up and stopped this."

"A system in which government, whether Federal or local, picks the winners in the economy, is not capitalism, it's not competition, it's not free market, it is corporate socialism, it is statism, it's the state making these choices," Johnston said.

In his new book, "Free Lunch" (Portfolio) Johnston amplifies this point by noting "Sam Walton practiced corporate socialism. As much as he could, he put the public's money to work for his benefit. Free land, long-term leases at below-market rates, pocketing sales taxes, even getting workers trained at government expense were among the ways Wal-Mart took every dollar of welfare it could get."

"Walton had a particular fondness for government-sponsored industrial revenue bonds," Johnston continued, "which cost him less in interest charges than the corporate bonds the market economy uses to raise money."

Johnston said in the television interview that if the public really understood what was happening they would not permit government subsidies to corporations to go forward.

Johnston pointed out: "Subsidies to retail cannot make us wealthier. Retail is at the end of the economic line. If you want to subsidize things, first subsidize education, then subsidize basic research, then subsidize applied research and development and subsidize infrastructure---rails and canals and highways---and maybe in some cases manufacturing and mining to get something going. But the least bang for the buck, and often the negative bang for the buck, would be subsidizing retail. What's happening is wealthy families, the richest families in America, are getting welfare and they apparently have no shame about this."

Johnston points out government handouts for Wal-Mart "reduce the costs of competing in the market" and by soliciting the subsidies "Wal-Mart shifted some of the risks of its expansion onto the majority of Americans who are not regular Wal-Mart shoppers."

He said the fortune Wal-Mart is reaping is no different from what other corporate players are getting. "We are transferring enormous amounts of money to corporations and wealthy individuals," Johnston pointed out. For example, he said, "We gave Warren Buffett's companies a hundred million dollar gift last year." (Buffett's firm has a two-thirds-billion-dollar, interest-free loan from our government for more than 28 year, Johnston notes. Similarly, Donald Trump benefits from a tax enacted to help the elderly and the poor but part of which is now diverted to his casinos, Johnston says.)

"The incomes of the top one percent are exploding, are pulling away from everybody else," Johnston said, "while the middle-class is stifling and the bottom is dropping out (of the economy)."

Author Johnson, for many years the tax reporter for The New York Times, has won a Pulitzer Prize and many other awards and uncovered so many tax dodges that he has been called the "de facto chief tax enforcement officer of the United States."