Wal-Mart Readies To Fight Obama Administration On Labor Reforms
Several stories over the past two days have outlined the oncoming fight between Wal-Mart and the Obama administration over labor reforms, primarily over the Employee Free Choice Act (EFCA) - but also health care reform and a slew of other potential legislation.
This is no suprise for anyone. Wal-Mart isn’t stupid, it read the writing on the wall and has been preparing for a democratic win and a push for labor reform for a while. It’s been donating more money to politicians (including democrats) to curry favor, as well as funding major anti-EFCA initiatives (not to mention explicitly telling its employees to vote for John McCain.)
Other big business - retailers especially - will be play major roles in the fight, but no American Business’s model is more threatened by labor reform right now than Wal-Mart - which looks to be ground zero in the upcoming battle with the new administration.
A labor attorney quoted in Reuters sums it well:
“You’ll see an all-out battle at Wal-Mart” by labor, said attorney Richard Hankins, who leads the labor and employment practice at the law firm of Kilpatrick Stockton.
Jonathan Birchall at FT tells about the Obama administration could hit Wal-Mart on health care as well:
On healthcare, Mr Obama’s platform included setting a minimum contribution level for businesses to their employees’ healthcare plans - an approach that has been opposed at state level by big non-unionised retailers, including Wal-Mart...The retailer, with more than 1.3m staff, has said it wants to work on healthcare reform with a new administration.
And if Wal-Mart hadn’t already made it clear enough how much it refuses to change or pay its workers a dime more, check out the gall on Lee Scott - quoted by the Associated Press at the recent analysts’ meeting:
“It’ll be generations in the impact it [EFCA] has on this country. And it won’t be positive. I guarantee you that. It will not be positive. But for Wal-Mart, in the short term, and in the longer term on a relative basis with our peers, we’re going to run this business,” Scott said. He continued, ”We like driving the car and we’re not going to give the steering wheel to anybody but us.”
Will the next four years see better wages and benefits for Wal-Mart’s 1.4 million employees? Will it loosen Wal-Mart’s grip on the steering wheel? We look forward to finding out - and blogging about it.
Posted by Eric Bull on Friday, November 07 | 44 comments | Permalink
Change is Coming Wal-Mart
Hey, Wal-Mart? Do you feel the winds blowing today? Ah, yes, the winds of change. Indeed, that key demographic of Wal-Mart women across the country surely voted their pocketbooks and their consciences - and helped the electorate hand a decisive victory to Senator Barack Obama.
You can bet the Walton family and CEO Lee Scott weren’t doing a victory dance last night when the election was called for Obama. Oh, sure the company’s pr and gov relations guy, Leslie Dach has tried really, really, really, really hard recently (especially as things were looking really promising for Obama) to convince everyone that Wal-Mart was “non-partisan” – even going so far as to air infomercials for both candidates in the company’s stores. But, those “non-partisan” activities, like so many things Wal-Mart does are mere distractions from what the company was really up to.
In August, the Wall Street Journal exposed Wal-Mart’s mandatory meetings to attempt to instruct its employees to vote against Democrats and Senator Obama – oh, sure they nuanced the message in some settings, but the point was clear. And, the company implemented a plan at the beginning of 2008 to train all of its managers how to fight the Employee Free Choice Act (EFCA) should Obama be elected. During the presidential campaign, we saw anti-EFCA ads (and anti-Obama – walking the legal line in various forms) from several different organizations - including (but, not limited to): the Workforce Fairness Institute; Center for Union Facts; The Center for Consumer Freedom and of course, the Employment Policies Institute. Since these groups don’t disclose all of their contributors, it’s hard to prove that Wal-Mart gave them money, but we have a pretty good idea that Wal-Mart invested a nice chunk of change in their efforts. Maybe someone should ask Wal-Mart.
For the past eight years, Wal-Mart has had a free pass to trample workers’ rights - in part due to the ineffectiveness of the NLRB – and in part due to a system that has favored employers. The company’s business model of paying appallingly low wages, offering catastrophic, unaffordable health care plans, forcing employees to forgo overtime pay, manipulating employees’ schedules as punishment for standing up to the company, discriminating against employees and a host of other issues – evident from a multitude of lawsuits - and from the mouths of employees themselves - is finally in jeopardy.
Yep, change is coming. With an Obama presidency and the Democratic gains in Congress, average Americans – including Wal-Mart workers - will once more have a say and stand a chance of getting a fair shake. Wal-Mart knows it – and fears it.
Expect to see the company increase its lobbying expenditures in the next few months and ramp up its efforts to mislead its employees about EFCA – which by the way, could finally give its employees the ability to stand up to the company. And, expect to see even worse treatment of employees to send a clear message to them about who is still in charge (and Wal-Mart just doesn’t ever seem to learn on this front).
Posted by Media Team on Wednesday, November 05 | 24 comments | Permalink
Weekly Update for Elected Officials: Halloween Edition
Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.
This week’s issue begins on Wal-Mart and the economy, and whether Wal-Mart sales statistics can be used as a new barometer for the U.S. economy. You’ll also find stories on changes in shopper behavior, now that consumers are faced with less disposable income. And, you’ll find stories on Wal-Mart’s slowed growth, and the switch to smaller store formats by retailers across the country.
In addition to the economy, you’ll find stories related to next week’s election. Barack Obama highlighted the story of a 72-year-old man forced to go back to work for Wal-Mart in his half-hour special this past Wednesday night. Meanwhile, according to Reuters Wal-Mart vows to remain non-partisan in the 2008 election season, while the Financial Times reports on the candidates attempting to woo the so-called “Wal-Mart Moms.” Plus, there are suspicions that Wal-Mart is behind a new grassroots group recently set up to fight the Employee Free Choice Act, as reported in The National Journal.
Also: Find out whether a Wal-Mart case in Montana could lead to changes in that state’s campaign finance law.
And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe. A California ballot measure could lead to increased demand for more humane animal products, while citizens in Virginia continue to fight Wal-Mart’s attempt to build near an historic Civil War battlefield.
Wal-Mart Watch Weekly Update for Elected Officials [October 31, 2008]
Posted by Corey Himrod on Friday, October 31 | 51 comments | Permalink
Connecticut AG gives Wal-Mart some homework
We blogged about this yesterday, what with the double taxation in Connecticut and the various state officials telling Wal-Mart to stop. Well, the Hartford Courant obtained a copy of CT AG Blumenthal’s letter to Wal-Mart, and here it is. A sampling:
Please review with your Connecticut stores whether they are complying with Connecticut law, and report back to me your findings. If they are not complying, please report to me how you intend to refund customers for sales tax erroneously charged, and how you intend to ensure that your store and employees comply with Connecticut law in the future.
I return, yet again, to my favorite quote from yesterday‘s article:
[Wal-Mart] spokesman Dan Fogelman said Monday evening that although he has no idea what Connecticut state tax law is, his company is following it.
Dan and Wal-Mart better do their homework…
Connecticut Attorney General letter to Wal-Mart
Posted by Corey Himrod on Wednesday, October 29 | 16 comments | Permalink
Wal-Mart case could lead to changes in Montana campaign finance law
Allegations of campaign violations are rising in the Big Sky State, and a recently-released decision on a 2006 complaint might lead to changes in Montana’s campaign finance law.
Complaints of violations flowing in at the rate of about 30 per day to the state’s Commissioner or Political Practices, have of which are coming from Ravalli County in southwestern Montana. According to the Ravalli Republic:
The state’s most pressing investigation in Ravalli County concerns the Higher Ground Foundation, a nonprofit group that is urging voters to repeal the county’s growth policy in an effort to prevent zoning and streamside setback regulations from being adopted later.
The group formed as an “incidental committee,” which are defined as a group that makes political contributions but whose primary purpose isn’t to influence elections. But it has become clear to many that Higher Ground has a higher purpose than simply contributing funds, and is instead directly promoting the repeal of the county’s growth policy. Complainants are urging the state to force the group disclose the sources of its funding, and its expenditures.
So how does this tie into Wal-Mart? Well, just over a week ago, Montana Commissioner of Political Practices Dennis Unsworth released his opinion regarding a 2006 complaint against a group called Ravalli County Citizens for Free Enterprise. The group supported construction of a Wal-Mart Supercenter and the successful repeal of a zoning ordinance that blocked big-box stores. Unsworth ruled that RCCFE was nothing more than a Wal-Mart front-group that violated financial reporting and record-keeping laws. He said that Wal-Mart appeared to have bought a campaign in order to influence an election, and that the case could lead to Third party campaigning is growing in the state [The Missoulian]” title="changes in Montana’s campaign finance disclosure laws">changes in Montana’s campaign finance disclosure laws. It turned out that only $90 of the PAC’s money came from local residents, whereas $115,000 came from Wal-Mart.
“It’s absolutely critical,” Unsworth said, “that voters know who’s behind these groups, in order to make informed decisions.”
Read the rest of this story ...
Posted by Corey Himrod on Tuesday, October 28 | 13 comments | Permalink
Connecticut Attorney General targets Wal-Mart
George Gombossy and the Hartford Courant continue to follow this issue, which has taken a turn in favor of the consumer. Numerous complaints made to the Courant caused both Governor Rell and Attorney General Blumenthal to take notice. The complaints were from consumers charging that major retailers have been violating state law by charging a second sales tax when merchandise paid for with cash is exchanged. Governor Rell ordered the state revenue department investigate the practice, and now AG Blumenthal has sent a letter to Wal-Mart telling the company’s general counsel in an oh-so-kindly way to please knock it off with the double taxation.
“Wal-Mart should refund any consumer who was denied a refund of sales tax on returned goods or charged a sales tax on even exchanges,” Blumenthal wrote to Sam Reeves, Wal-Mart’s division general counsel.
My favorite part of this story so far though has come from our good friend, Wal-Mart spokesman Dan Fogelman, who defended Wal-Mart’s policy.
Spokesman Dan Fogleman said Monday evening that although he has no idea what Connecticut sales tax law is, his company is following it.
That’s right - despite his cluelessness to the law and the company’s refusal to discuss why the accusations of so many customers are wrong, Fogelman can guarantee Wal-Mart is following state tax law to the tee. I love blanket statements with nothing to back them up.
Blumenthal Targets Wal-Mart on Sales Tax [Hartford Courant]
Posted by Corey Himrod on Tuesday, October 28 | 1 comments | Permalink
Group To Keep An Eye On: Workforce Fairness Institute
The National Journal’s Under The Influence Blog brings our attention to a new 501(c)6 group called the “Workforce Fairness Institute,” whose sole purpose is to fight the Employee Free Choice Act (EFCA).
The National Journal tells us:
Packer would not identify the WFI’s funders. But sources familiar with its creation speculate that such big retailers as Wal-Mart and Home Depot—a which are high-profile opponents of EFCA—are likely among the group’s donors. One source says the WFI is trying to raise as much as $10 million for its operations.
Presumably, Wal-Mart and other companies are spending early while preparing for a possible Obama administration and strong Democratic majorities in both the House and Senate - which are expected to make a push for the legislation which, of course, would make it easier for Wal-Mart workers to form unions and negotiate contracts for higher wages and better benefits.
The WFI website is savetheelection.org, and the featured video is a fake news broadcast which for the first minute or so openly implies that the presidential election is being taken away. Halfway through it tells us we’re talking about a possible change in unionization rules.
But - the website reminds us that WFI (just like Wal-Mart!) is “NOT anti-Union.” Which is reassuring.
We’ll do our best to investigate WFI’s funding disclosure laws, and Wal-Mart’s role in the venture. As usual....we’ll be watching.
Posted by Media Team on Monday, October 27 | 8 comments | Permalink
Weekly Update for Elected Officials: Oct. 22, 2008
Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.
This week’s issue begins with news of Wal-Mart’s closing of a Quebec Tire and Lube Express, just two months after workers there won a precedent-setting collective bargaining agreement. The move has been wildly denounced, although Wal-Mart officials maintain that Wal-Mart is not anti-union. Following up on that, BloggingStocks.com asks whether it’s wise that the retailer would rather see an operation shut down entirely than have employees with any kind of power.
In addition, the Hartford Courant has been following an issue in Connecticut - it seems the CT Consumer Protection Department will review Wal-Mart’s double tax policy to see if it violates state tax law. And on the International side, read more about Wal-Mart’s new green store in Beijing, China, and how the retailer is claiming it will toughen standards on its Chinese suppliers.
And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe.
Wal-Mart Watch Weekly Update for Elected Officials [October 22, 2008]
Posted by Corey Himrod on Thursday, October 23 | 1 comments | Permalink
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