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Wage & Hour Issues Read how Wal-Mart continually fails to pay every worker for every hour worked

Health Care Wal-Mart's still insures barely over half its employees on the company plan

Always Low Wages Poverty-level wages make life extremely difficult for Wal-Mart's 1.4 million workers

The Environment How Wal-Mart's business model is detrimental for our planet

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This week we’ve continued to hear from workers who are frustrated with their jobs at Wal-Mart. As always, we are amazed by the sheer quantity and variety that we get on a day-to-day basis. Regardless of what the mainstream media and Wal-Mart spokesmen say about the company, you can always come to this website to hear the real stories from the workers who write us.

The following comments - both from employees and non-employees - address expensive health care, wages, unions, food donations, doctor’s notes, and the lack of air conditioning—it was enough to make two workers quit this week.

A.M. from Indiana writes to us about wage discrimination and expensive health care:

In our store you only have a chance at a promotion if you kiss up to the managers. Moreover, the variance in the pay rates for the same job codes ranges about three dollars. Tell me how this is fair! Not to mention the health care issues, how can I afford daily meds for a chronic condition when my premiums are so high and my pay is so low? When I get to the pharmacy, I find that 80 percent of my prescriptions are not covered.

An anonymous worker from Pennsylvania describes an uncomfortable anti-union meeting:

I am disgusted with myself and the way in which my life has turned out since I have been employed with Wal-Mart for five years. I recently became a salaried manager because I needed the money. After four years at Wal-Mart, I had not yet worked my way up to what I had made at my previous job - a fast food franchise. You must understand, I never wanted to work for this company, but the truth is that when you are poor, you have no skills, and you have no college education, it is difficult to find a job that pays well. I expected to be poorly paid for a while. However, I had high expectation for myself and expected to move quickly through the management ranks.

Before starting with the company, I had read lots of anti-Wal-mart propaganda. I knew there were a ridiculously small number of women managers compared to males - especially when I factoring in how many more women work at Wal-Mart. I expected those challenges and I embraced them. Unfortunately, I overcame them without ever doing anything to ensure that no other deserving woman would be held back.

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Posted by Research Team | Permalink

Tags: wages, food, efca, health care, unions, scheduling, donations

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On the surface, it appears Wal-Mart was quite charitable in 2008: according to an Associated Press story in today’s news, the retailer gave away $423 million last year. But for a company Wal-Mart’s size, this is chump change. A better number, researched by Forbes, is giving as a percentage of a company’s operating revenue (essentially, earnings before taxes and interest payments). By this measure, Wal-Mart ranks after relatively smaller entities such as Kroger, which according to our calculations from the company’s website, gave a whopping 6.7% of its 2006 operating income in total charitable donations, including the value of in-kind donations to food banks and other community outreach efforts. The Forbes article, for its part, ranks Kroger number one in charitable giving, but lists them giving away only 57 million out of a 2006 operating income of $3.3 billion, or 1.7%. This lower number, which counts only the company’s cash donations, misses the true value of Kroger’s charitable activity. For Wal-Mart we have more recent numbers: $423 million amounts to 1.9% of the company’s 2008 operating income given in cash donations.

We challenge Wal-Mart to be more transparent about where they disperse these funds. More importantly, we challenge it to support the American economy in a much more durable way by paying its employees better wages. Wal-Mart frequently attempts to substitute charity for real investment in a community; the company trickles out feel-good charitable donation stories—a theater here, a park there—to maximize the positive spin it receives in the media. The company is also known for using charity to manipulate public opinion, especially in the Chicago area where it recently gave money to run a children’s theater program in Waukegan, on Chicago’s north side.  While Wal-Mart’s charity in a general sense is not to be criticized, obvious attempts to influence public opinion in areas where the retailer wants to expand are certainly suspect. Most importantly, they are no substitute for paying a living wage and offering adequate and affordable health benefits. Instead of patronizing communities, Wal-Mart should help empower workers to help themselves.

The Associated Press story is here.

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After dragging its feet for months, Wal-Mart has finally decided to make good on its promise to donate to the earthquake relief in Sichuan, China by actually donating something!  On October 26, Wal-Mart held a donation ceremony (pictured on the right) to donate 2,566,000RMB (about $375,000) worth of ambulances and medical supplies to 20 different organizations in several cities throughout Sichuan.  And never one to miss out on publicity, Wal-Mart has even tagged the ambulances with the Wal-Mart brand (pictured after the jump).

Since the 8.0 magnitude earthquake devastated Sichuan in May, Wal-Mart has been plagued by criticism for its relatively low donation to the earthquake relief and Wal-Mart’s failure to live up to said donations.  Wal-Mart China’s PR director, Jonathan Dong, has been working overtime defending the company’s image - even writing to Wal-Mart Watch, imploring us not to spread negative stories about Wal-Mart’s donation fiasco. Asked why Wal-Mart hadn’t fulfilled its donation pledge, Dong stated that spending money is difficult! Fortunately for Mr. Dong, it looks like this problem may finally be ending.

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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.”

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Posted by Corey Himrod | Permalink

Tags: stores, election, donations, opinion, growth, influence, zoning, montana, funding

26 comments

You might recall several posts we did regarding Wal-Mart’s donations to China’s earthquake relief efforts.  Those posts all cited numerous articles which detailed not only Wal-Mart’s meager donation pledges, but also that Wal-Mart had largely failed to follow through on their donations.  Worse, another story surfaced about how Wal-Mart would potentially profit off the earthquake victims by building stores in the earthquake region.

All these posts were a bit too much for Wal-Mart China’s director of public relations Jonathan Dong.  He even wrote us a strongly worded letter to express his dismay.  Unfortunately for Jonathan Dong, this story just won’t end.

According to a recent article from Beibu Gulf ASEAN Economic Web, Wal-Mart STILL has not met its donation targets!  Luckily, Jonathan has prepared a response:  “Spending money is hard.”

Public relations director Jonathan Dong (董玉国) explained “contributing money is easy; spending money is difficult. On May 23, Wal-Mart decided to give away an additional 17 million .  The company immediately looked for projects to aid, looking at subsidizing schools, orphanages, etc.  But Wal-Mart found out that many [companies] were financing the same projects.” At present time, Wal-Mart is in the process of seeking suitable projects to support.

Imagine that. 

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