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Wal-Mart’s Hired Guns Firing Blanks
The millions of dollars Wal-Mart is paying to high-powered PR firms seem to be providing them little in return. Wal-Mart CEO Lee Scott’s idiosyncratic support for a higher minimum wage – ridiculed by critics on the political right and left – coupled with the fallout from the internal memo leaked by Wal-Mart Watch have been the most recent gaffes on the part of Wal-Mart’s public relations team. And that was all just this week.
From public relations industry newsletter, PR Fuel
Rarely a day goes by when Wal-Mart, the world’s largest retailer, doesn’t drum up some kind of press. Last month, the company was being showered with praise for its relief work in the aftermath of Hurricane Katrina. (Business Week reports that PR giant Edelman helped Wal-Mart drum up positive press from bloggers, which translated into mainstream media coverage.) With a positive glow surrounding the company for the first time in a long time, Wal-Mart CEO Lee Scott decided publicly to back a higher federal minimum wage (Wal-Mart often comes under fire for not paying its employees much) and a new health care scheme for employees. (Again, Wal-Mart often comes under fire for having a poor benefits package, unlike rival Costco.) For a moment, it seemed that Wal-Mart was going to get nothing but good press for two weeks in a row. And then it happened.
Yesterday, a story in The New York Times reported that in a memo to the company’s board, a Wal-Mart executive suggested that the company lower its health care costs by hiring more part-time employees (most of whom are not eligible for benefits) and “healthier, more productive employees.” The memo has been widely criticized, with Wal-Mart bashers saying Scott’s stance on the minimum wage is “laughable” in light of what others in the company are saying. While it’s often difficult to draw comparisons between Wal-Mart and any company, in this situation it’s not so hard.
First, the leaked memo proves that Wal-Mart has an internal security problem. More often than not, leaks come from disgruntled employees and are designed to embarrass a company. Second, Scott’s stance on minimum wage is certainly an about-face, and rightfully was greeted skeptically. When it comes down to brass tacks, Scott’s comments on minimum wage are akin to a gun manufacturer pushing for gun controls. Said another way, no one is buying.
It’s important that people who speak publicly on behalf of a company maintain a consistent message, and Scott certainly went off message. While his intentions may have been honorable, there is too much evidence that suggests Wal-Mart cares little about minimum wage earners, and cares more about its bottom line. By going off message, Scott merely made himself look foolish.
Posted by Media Team on Friday, October 28, 2005
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COMMENTS
Matters such as wages are a private matter between employee and employer. The government has no right to interfere. Mr. Scott has no right to interfere in the wages in companies outside of his own.
jc in
Saturday, October 29 at 02:54 PM
There are minimum standards that have to be met so it’s not entirely between employee and employer. Of course there are those (Nick for one and I think ND for another) who don’t even want a mimimum wage. But it is here and I don’t think it’s going anywhere anytime soon.
I know how bitterly some people look upon unions. Many of them--not all--have no experience with being a member of one. Between a union and some employers there are also agreements made. These do allow for certain freedoms and
protections for an employee. And usually provide employees better wages and benefits and a way of venting. Yes--there are abuses sometimes but here it is not always going inone direction from employer to employee.
As for Mr. Scott most of us I would think see these comments of his as a calculation on his and WM’s part to show his company in a good light. To me that is all that is.
There’s no sincerity here.
larry in elmira, ny
Saturday, October 29 at 04:51 PM
If I understand this right its a 2 way street. for example, I work for you and you pay me for what I did. Sometimes I get the impression that Wal Mart wants to make everything a 1 way street. This is why I think Bentonville is getting out of touch with the employees of all of the Wal Mart Stores.
Bert in Tennessee
Sunday, October 30 at 02:15 AM
To me, the BEST PR is the employees themselves........ALL of them. If Wal-mart employees were really being taken care of, across the board, this PR campaign wouldn’t be necessary. When employees feel valued, etc., they WILL tell the world.....and this, in my opinion, is where Wal-mart is missing the point.
Just think of the benefits, etc. that Wal-mart could offer with the money they are spending on PR.
Louise in Montana
Sunday, October 30 at 09:06 PM
Louise
There have been a numer of employees reporting good experiences who have spoken up on this forum. They are promptly labelled as being paid by Walmart to post to this forum.
David in Zack AR
Monday, October 31 at 01:49 PM
Dear Zack:
No, they just don’t want to be fired! That is the biggest thing walmart holds over the employees’ heads. Doesn’t matter how good of a job you do, or how much you brown nose to keep your job, if they don’t want you, you are gone. Period.
And there is nothing you can do about it. Walmart employs an army of Attorneys to fight every workers compensation, unemployment and discrimination suits. It is cheaper to pay the attorneys to fight than to pay a lawsuit. I was told this personally by the workers comp person at the home office. Get hurt on the job? Get ready to pay all your medical bills yourself and live off your vacation and sick leave, if you have any, until you can come back to work. O lose the lawsuit and end up paying attorney’s fees. Good luck!
anonymous in
Monday, October 31 at 02:32 PM
We had an associate get hurt at the front register by tripping over a box and hurting her knee. She was out for a long time on worker’s comp, then decided to sue the company. Little did she know, she was on video. She repeatedly looked at this box on the floor, and walked around it several times before she eventually tripped over it. THAT is why WM may fight some suits. People are sometimes out to get rich quick and they will lie to get it. Nevertheless, she didn’t win her case, and she is still working.
Kim in NC
Monday, October 31 at 08:22 PM
Kim,
You are right. Wal-Mart is taking a hard line against fraud and it should. In West Virginia, workers comp fraud is rampant. Anyone you talk to knows someone on comp and usually someone who’s faking it. They actually only prosecute 10 fraud cases per year in the entire state and rates can go as high as $0.55 on the dollar. What this means is, a company pays 55 cents to workers comp for every dollar they pay an employee in gross wages. It is out of control. Every other lawyer is a workers’ comp lawyer and there are several who have earned millions representing these people.
When I worked in retail, they had what were known as professional slip and fallers. That is, people who would come in to a store, spot a drop of water without a Wet Floor sign, slip and fall on the floor and start screaming. The store would have to fill out an accident report. Even if they had the people on tape, it didn’t matter. The insurance company would cut them a check for $500 in return for a release. If the store refused to go along, the insurance company would drop them. This is a huge problem everywhere but especially in stores in low income neighborhoods. That is because these people are looking for a fast buck and they don’t care who they hurt to get it.
Sam Walton had a unique view of lawsuits such as workers comp, slip and fall, etc. He did not believe in simple settlements. Every single lawsuit, from the entire company, was presented to him personally. He would listen and then ask whether or not Wal-Mart was at fault. If his people assured him they were, he would immediately order his people to pay the person and arrange for their care. He would then call the person and write them a personal note, apologizing. He would then ascertain what had happened to cause this accident and he would personally see that is was fixed immediately. Mr. Sam was a great man and he believed in taking care of people. When Wal-Mart was not at fault, he refused to settle anything. Why admit guilt if you are not at fault? He believed that it was better in the long run to fight for your innocence rather than settle. And he was right.
Of course, today, lawyers and the morons they represent see Wal-Mart as the world’s largest company and, as such, the world’s largest target for lawsuits, legitimate or not. Lawyers are scum; they produce nothing, build nothing, invent nothing, own nothing, create no new products, manage nothing. They simply take. They transfer wealth. They are, for the most part, worthless.
Sorry I rambled again.
Nick in Wheeling
Tuesday, November 01 at 12:15 PM
funny all you think minimum wage is the issue, think a miniute, working in a walmart store isnt rocket science is it.
if these people want to be payed more work harder. try working loading one of the trucks in a distribution center. ohh no wait thats real work isnt it.
hard worker in
Wednesday, November 02 at 04:58 PM
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