The Wal-Mart Watch Blog
Wisconsin

34 comments | Apr 30, 2009

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Wal-Mart workers from across the nation are converging today on Capitol Hill for a National Organizing Meeting to brief Senators about wages, benefits and the Employee Free Choice Act. We have Wal-Mart Watch peeps down on the Hill, and will have more updates as the day goes on.

Wal-Mart Workers Holding Historic National Organizing Meeting [UFCW Release via EarthTimes]

WASHINGTON - (Business Wire) Walmart workers from across the nation are converging today on Capitol Hill for a National Organizing Meeting to brief Senators about wages, benefits and the Employee Free Choice Act. Nearly 100 Walmart workers from 17 states are participating in the event. As part of their campaign for a union voice on the job, they will urge lawmakers to level the playing field for working people by supporting the Employee Free Choice Act.

“I made the trip into Washington DC to stand with my fellow Walmart workers and to urge my Senators to pass the Employee Free Choice Act,” said Dominique Sloan a Dallas, Texas, Walmart worker. “We need change in this country. All you have to do is look at how all the money goes to CEOs. But when it comes to workers, it’s always the same, no health care or health care that’s too expensive and low wages. We need to change that.”

The National Organizing Committee is made up of Walmart workers from Arkansas, Colorado, Florida, Illinois, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, Washington and Wisconsin.

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10 comments | Jul 24, 2008

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Earlier this week, Wisconsin Public Radio hosted a discussion on state budget shortfalls, tax avoidance, and ways for states to make up lost revenue:

With the recent Wisconsin budget shortfall, lawmakers are examining ways to increase revenue. After nine, John Munson and his guests discuss the impact of corporate tax loopholes and how stopping them could help fix the state budget. Guests:
- Russ Decker, Wisconsin Senator (D-Schofield).
- Michael Mazerov, Senior Fellow, State Fiscal Project, Center on Budget and Policy Priorities, Washington, DC.

Check out the podcast. Wisconsin is currently one of the states that has gone after companies like Wal-Mart for avoiding corporate income tax, so the discussion is especially relevant there.

8 comments | Feb 07, 2008

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In an op-ed today in the Capital Times of Madison, WI, Wal-Mart executive Lisa B. Nelson explains why everyone should stop hating Wal-Mart. Before we get into specifics, let’s set the scene. Wisconsin residents are currently fighting Wal-Mart in several cities. In fact, just a few months ago the very same newspaper ran an editorial criticizing the retailer. Now it seems that Wal-Mart’s PR department is trying to make up lost ground.

Lisa Nelson is quick to brush off past criticisms, and draws attention to Wal-Mart’s sale of CFL lightbulbs and cheap generic drugs. At the end of the editorial, Lisa Nelson asks readers to “Judge Wal-Mart by our actions.” Well, Lisa, we’d be happy to.

• World’s Largest Company Facing Nation’s Largest Workplace-Bias Lawsuit. Wal-Mart stands accused of systematically discriminating against 1.3 million female employees over the course of more than a decade. The current and former Wal-Mart associates charge the company pays women less and offers them fewer opportunities for promotion. More...
• Wal-Mart’s Health Coverage Rates Lags Far Behind National Average. Nationally, 63 percent of workers in large firms (200 employees or more) receive their health benefits from their employer. More than 80 percent of Costco workers are covered by their company plan. At Wal-Mart, that figure is just barely 50%. More...
• Multiple Labor Law Violations. State and federal regulators have hit Wal-Mart for violating rules on work hours and leave: family leave laws, refusing to provide breaks for employees, hiring undocumented workers and forcing associates to work off the clock are just some of the violations Wal-Mart has faced. More...
• Wal-Mart Costs Taxpayers Money. Wal-Mart drains public funds in a number of ways: by forcing workers to use state-sponsored medical programs, by using public dollars for its private development and using up local resources. More...

Lisa B. Nelson might want these issues to disappear, but they don’t. While Wal-Mart’s PR department tries desperately to focus on new issues, these larger problems remain unresolved. We’ll gladly judge Wal-Mart by its actions, Lisa. In fact, we already are.

11 comments | Dec 18, 2007

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Many communities are eager to see a new Wal-Mart come to town, but few think of the effect the retailer will have if and when it leaves. This article from Minnesota’s St. Cloud Times gives a local perspective to the retailer’s global prospects. Visit Battle-Mart for more information about fighting Wal-Mart in your local community.

Wal-Mart’s exit is boon, bane for communities [St. Cloud Times (Minn.)]

An empty Wal-Mart building sits along a stretch of road in Little Falls and shoppers have been rerouted to a newer, bigger Wal-Mart down the street.

Its owners have taken care of the old building after the Wal-Mart Supercenter was built in August. It’s been repainted a shade of light green, masking signs of what once thrived there.

At any given time, about 300 to 400 former Wal-Mart stores sit empty around the nation, in some cases for as long as five to seven years, said Ken Stone, a retired professor from Iowa State University who has studied Wal-Mart for about 20 years. Those empty buildings can be a blight to a community and area businesses if they sit untouched for too long.

“It’s a real problem, there’s no question about it,” Stone said.

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5 comments | Nov 19, 2007

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This editorial from Wisconsin’s Capital Times points out that no matter how good or bad Wal-Mart’s green report might be, the company is still overlooking some crucial aspects of retailing.

Wal-Mart’s reputation [Capital Times (Wisc.)]

Wal-Mart is working hard to clean up its image, with new “green” stores and moves to improve its health care program.

But the chain still has a bit of a problem when it comes to the basics of retailing. Here in Wisconsin, state inspectors have uncovered a pattern of Wal-Mart stores overcharging customers. The stores charge for the weight of the packaging of bulk items, such as potatoes and coffee.

This puts Wal-Mart in violation of Wisconsin’s clearly defined weights and measures rules—so clearly that the chain is being required to pay fines of $90,000.

It is good that Wal-Mart is starting to recognize that its critics over the years—particularly those involved with the fine group Wal-Mart Watch—have been right about the need for the corporation to be more responsible with its workers and the environment.

But the bottom line for any retailer is how it treats consumers. And when Wal-Mart gets caught overcharging for the basics, the company tarnishes its own reputation more than any critic ever could.

29 comments | Nov 07, 2007

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Buying in bulk IS an excellent way to save money. Buying in bulk DOES mean you get to take tons and tons of delicious items like, say, peanuts, pecans, cashews, almonds, raisins, dried dates, dried figs, dried banana chips, any other previously unmentioned dried fruit, skittles, pickles...umm...yogurt-covered pretzels......granola............vegetables?......dog biscuits maybe?...and buy them for cheap, cheap, cheap!

Apparently, however, when you do buy in bulk, you’re NOT supposed to have to pay for the packaging materials that accompany said bulk foods, a fact that appears to have escaped Wal-Mart stores in Wisconsin. After canvasing selected stores last year, Wisconsin officials found 280 violations across nine locations, and subsequently fined Wal-Mart $90,000.

State officials found Wal-Mart was adding packing materials to the weight, and thus cost, of bulk items including coffee, broccoli, and sweet potatoes. Why someone would buy broccoli in bulk escapes me - if something smells that bad while its being steamed, it should probably be adequate warning not to eat it. Still, it might be worth other states looking into this if they haven’t already...nobody likes to be overcharged for their java.

Wal-Mart hit with $89,705 state fine [Manitowoc Herald Times Reporter]

Wal-Mart Stores Inc. was slapped with an $89,705 fine by the state for overcharging for bulk coffee and vegetables.

Representatives with state Department of Agriculture, Trade and Consumer Protection announced the fine Wednesday at a press conference in Neenah.

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1 comments | Sep 24, 2007

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You’d think, of all companies, one that bills itself as “the place for one stop shopping” would champion the merits of placing everything under one roof.

Yet, when word of “combined reporting” makes its way down to a Bentonville boardroom, its enough to make a Wal-Mart executive reach for a $4 generic vicadin. Combined reporting is a tax policy that treats parent companies and its subsidiaries as one corporation for state income tax purposes - profits are combined, and then a share of that income is taxed by a state based on a formula calculating the corporation’s level of activity within that state.

Lawmakers in Wisconsin and Maryland are the latest to jump on the combined reporting bandwagon. Apparently in Wisconsin, $90 million is on the table should the state decide to reform its tax law and adopt combined reporting. Its a tough question for a state strapped for cash, and whose revenue department has already gone after WalMartopia for more than $17.7 million in back corporate income taxes, interest and penalties for 1998, 1999 and 2000.

According to the Milwaukee Journal Sentinel:

Ninety million dollars is how much officials estimate could gush into state coffers annually if Wisconsin institutes combined reporting on corporate income tax returns. That’s about a 10% increase in corporate tax collections - a tempting prospect for some legislators at a time when Madison is striving for every nickel.

Maryland Governor Martin O’Malley had proposed the measure in his state as well, according to the Baltimore Sun:

The O’Malley administration estimates that by moving to “combined reporting,” the state would receive an additional $25 million per year in revenue, with three-fourths available for operating expenses and the remainder reserved for the Transportation Trust Fund. Some legislators believe that the annual fiscal impact could be much greater, perhaps $100 million or more.

Opponents of the measure counter that it will stifle growth, and that businesses facing higher taxes will simply shift jobs and investment to other states. Personally, I can’t wait to watch business after business pack their bags and flee the evilness that is combined reporting in California, New York, Texas and Illinois...the sound of them flocking to Mississippi, Alabama and South Carolina will be deafening. The number of combined reporting states is growing so fast - five states proposed the measure this year alone - it is this expert’s opinion that by 2010, every single corporation will be located in Oklahoma. Go Sooners.

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33 comments | Aug 27, 2007

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Wisconsin tax auditors say Wal-Mart Stores owes more than $17 million in back corporate income taxes, interest and penalties for 1998, 1999 and 2000.

But to hear Wal-Mart’s side of the story, a little cheating is nothing if done for the greater good, right? RIGHT?? According to Wal-Mart spokesman and legal-eagle John Simley:

“...anything Wal-Mart can do to lawfully reduce its costs allows the company to pass those savings along through lower prices.”

Awesome.

Well, while the $17+ million that Wal-Mart skipped out on could have gone to fund state schools, after-school programs, or other projects, it will be comforting for Wisconsin students to know that as a result of the scheming their Moms and Dads are now able to buy their cool new trapper-keeper for 30 cents cheaper. Plus, the notebook paper inside said trapper-keeper will come in handy as kindling, once schools run out of money and can no longer afford heat. A win-win in my book. Survivorman would be proud.

Several reports, including our own - you can find others here and here - have spelled out approximately how much Wal-Mart has cost states through the use of schemes such as captive REITs. No, they’re not illegal in EVERY state, but its a little disingenuous to proclaim to want to help your fellow man by providing “every day low prices” (Wal-Mart trademark pending?), then search out every tax break imaginable so you can stick it to John and Joan Q. Public on the other end. And please, please don’t use the “everybody else is doing it, so why can’t we?” defense. Sears and Kohls, among others, have already publically stated that they don’t use the REIT scheme, and even if they did, that wouldn’t make it right.

Anyway, bottom line: Wisconsin says Wal-Mart owes them $17.7 million. Wal-Mart says no we don’t, and if you make us pay we’ll just charge higher prices and be forced to sell even more low-cost lead-based toys then before. The WI Tax Appeals Commission will consider the matter, and then a state court will decide whether the Tax Appeals Commission considered it wrong. Stay tuned…

Wal-Mart owes back taxes, state says [Milwaukee Journal Sentinel]

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0 comments | Jan 23, 2007

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When Wal-Mart announced in March of last year that it would begin supporting more organic products, it was news that was supposed to shake up the retail world. Organic practices are better for the environment, organic food is healthier, and organic foods and products are supposed to be helping lure the more affluent shoppers away from competitors such as Target.

Well, while the wooing process continues, Wal-Mart might want to refresh its memory on exactly what “organic” means. Officials in Wisconsin have launched an investigation into Wal-Mart’s labeling practices, having received complaints that the retailer is misleading consumers by labeling non-organic products as being organic. The Cornucopia Institute, based in Wisconsin, first discovered the mislabeling at a store in Plano, Texas, and sent a letter to Bentonville. What started with that letter to Wal-Mart CEO Lee Scott last September became a formal complaint to the USDA in November when subsequent visits revealed that the problem remained.

Wal-Mart indifference and USDA inaction has now gotten state authorities involved, and Wisconsin has begun a consumer protection investigation. Two months after filing the USDA complaint, Cornucopia found alleged violations in Wisconsin, Illinois, Iowa and Minnesota. America’s Dairyland is the first state to launch an investigation, but could others be far behind? Organics are becoming big business with the industry growing fifteen percent annually for the past five years, so stay tuned.

While the investigation is ongoing, Wal-Mart spokesperson Karen Burk has pointed out that, “The USDA certification label is featured on the packaging of the organic selections we offer for further customer information and verification.” Meanwhile, unintentional or not, Wal-Mart might think about taking its own advice, and start checking those labels.

• Click here to visit the Cornucopia Institute.
• Click here to learn more about Wal-Mart’s environmental policies.

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