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In the last week, the blog Chicagoist has written what is one of the most in-depth looks at what it means for Americans to work at Walmart we’ve seen in the media this year.
In a three-part series, Chicagoist journalist Kevin Robinson, interviewed three current and former Walmart employees about what it is like for them to work for the world’s largest private employer and took a look at the labor practices that Walmart uses to create massive profits while at the same time depressing wages throughout entire industries.
That the Chicagoist is taking a look at Walmart is especially, well, appropriate. The Good Jobs Chicago coalition has been working for years make sure that if a Walmart is built in the South Side community of Englewood it will provide good jobs with living wages.
And we mean years.
If you live in Chicago (and I would imagine most regular Chicagoist readers do) you’ve been hearing about this proposed Walmart store for some time. A big-box wage ordinance that was aimed at the retailer was passed by the City Council and was then vetoed by Mayor Daley, his only veto to date (and he’s been in office for two decades). In 2007, a coalition of activists, unions, and community organizers pushed back against Daley, not supporting him for reelection, and helping to elect a number of pro-labor alderman. Now activists are looking to push a living wage ordinance that would require any company with 50 or more workers to pay the wage of at least $11.03 per hour if the company benefits from a city subsidy.
So Walmart might have been in the news a few times.
Part One of the Chicagoist series introduces the three associates, all working at Chicagoland area Walmart stores, how tough management can be as taskmasters, safety concerns (two of whom have suffered injuries on the job), and how Walmart’s push for low prices extends into how they pay their employees.
The second part addresses wage concerns and one of the scams that Walmart uses to increase profits. The scam? Pushing employee wages so low that many employees qualify for food stamps and public assistance. Specifically, the piece looks at how Walmart employees make such low wages that they are eligible for food stamps, which they then spend at Walmart to great advantage by the company.
Part Three examines Walmart’s labor practices, something near to our hearts here at Wake Up Walmart. That Walmart has one of the most aggressive anti-union practices in the world should come as no surprise, and Robinson includes some very interesting information about how those practices directly impact associates.
So if you have a few minutes, head over and read the articles. It is a very good introduction to how Walmart operates nationwide and provides good insight for anyone who might be hearing about a Walmart attempting to move into their town, or for Walmart associates to know that they are not alone when it comes to the kind of poor working conditions and employee treatment that occurs in Walmart stores everywhere.
Posted by Media Team | Permalink
From our allies over at Wake Up Walmart:
WakeUpWalmart.com and a coalition of supporters today launched a national week of action against Walmart’s irresponsible sick leave policy. WakeUpWalmart.com will hold events at 50 Walmart stores across the country to deliver ‘demerits’ and a letter to local store managers calling on Walmart to change its unfair and harmful sick day policy.
Last fall the New York Times article Lack of Sick Days May Worsen Flu Pandemic, exposed Walmart’s track record of giving employees “demerits” that can lead to termination when they call in sick. A number of workers across the country reported retaliation and termination from Walmart due to illness.
Beatrice Parker, a former greeter at Walmart # 3371 in Charlotte, N.C., felt forced to resign due to Walmart’s sick leave policy after suffering from a bladder infection caused by not being given bathroom breaks on the job.
In a new video released today, Parker describes abuse and age discrimination and asks Walmart CEO Mike Duke, “If you don’t have any or can’t have any concern for the way I was treated in this Walmart, please have some for the people who work there, especially the older people.” You can watch the video on the right of this post.
Walmart’s policies and actions create a working environment where employees feel they are faced with a choice between spreading the flu and keeping their job. Walmart deserves public demerits for sick leave policies that put the public at risk and make its employees sicker.
The Demerit Walmart program is supported by leading advocacy groups such as the MomsRising.org and the Labor Partnership for Working Families.
“MomsRising is extremely concerned by news reports that Walmart associates risk receiving demerits (which can lead to termination) for taking earned paid sick days,” said MomsRising Executive Director Kristin Rowe-Finkbeiner. “Such a practice is a public health hazard and a threat to the economic security of Walmart associates and their families. We call on Walmart to publicly respond to these charges and immediately end any ongoing practice of issuing demerits .”
Walmart is America’s largest private employer and sets the standard for workplaces in the retail industry. Walmart associates should not be afraid of losing their jobs simply because they are too sick to help customers. Walmart can and should live up to the highest possible workplace standards.
Posted by Media Team | Permalink
The Shaw’s supermarket on Whalley Avenue in New Haven, Connecticut is closing down. It’s one of 18 stores that are being sold off by Shaw’s owner, SuperValu.
Most of the Shaw’s stores are being bought up by three other New England grocery chains, including Stop & Shop, ShopRite and PriceRite. The Shaw’s in New Haven doesn’t have a buyer yet. Wal-Mart is listed by Supermarket News as the largest grocery chain in the world. In America, Wal-Mart’s market share is in the mid 20% range for dry groceries, dairy and frozen foods.
Supervalu is listed as number 15 on the worldwide grocers list. Supervalu describes itself as a “mix of owned, licensed, franchised and affiliated stores, (which) serves millions of families from coast-to-coast.” The retail banners that Supervalu operates include: Acme, Albertsons, Bigg’s Bristol Farms, Cub, Farm Fresh, Hornbackaer, Jewe-Osco, Shaw’s/Star Market, Shop ‘N Save, and Shoppers. The company also controls the discount grocery chain Save-A-Lot.
The Shaw’s lineage goes back to 1860, when George C. Shaw opened his first store in Portland, Maine. A few years later, another native New Englander, Maynard A. Davis, opened his first Public Markets in Brockton and New Bedford, Massachusetts. These two stores merged, and today the Shaw’s/Star Market chain has over 30,000 workers in the six New England states---soon to be five states. The 18 stores being shut down represent around 9% of the 194 stores under the Shaw’s banner.
Supervalu as a conglomerate controls roughly 4,300 retail outlets in the United States. “We bring our national scale and local hyper-relevance to thousands of consumers, helping to make us ‘America’s Neighborhood Grocer.’” But in Connecticut, Supervalu is leaving the neighborhood.
According to the Hartford Courant’s account of the Shaw’s meltdown this week, the company had a 15 year track record in Connecticut, but had come under increasing pressures from competitors like Wal-Mart and Whole Foods. Today Wal-Mart has only 5 superstores in Connecticut, and 28 discount stores. But in 1994, just as Shaw’s was preparing to enter Connecticut, the state had only 2 Wal-Mart discount stores, and no supercenters.
A spokesman for Supermarket News told the Hartford Courant that Shaw’s had failed to differentiate itself. “They’ve had an inconsistent identity with the shopper. In order for a conventional supermarket to stand out, they have to be special, whether that’s local flavor or product or service offerings that are unique.” At their point of highest penetration, Shaw’s had 26 stores in Connecticut, but over the years they shut down 8 stores. A spokesman for Supervalu told the Courant, “While these decisions are always difficult given the impact on associates and customers, they ultimately allow us to operate more efficiently and effectively within a highly competitive retail environment.” That’s of little consolation to the workers who are losing their jobs in the middle of this recession.
What you can do: Many of the former Shaw’s stores will be unionized under their new owners. Brian Petronella, a spokesman for the United Food and Commercial Workers (UFCW) local 371, said 5 of the ShopRites will be represented by the UFCW. Local 371 will also represent the new Stop & Shop stores. The UFCW extended a hand to the Shaw’s workers who will work at ShopRite stores that are not unionized. “We will try to help those people get jobs at union locations,” Petronella told the Courant.
The demise of Shaw’s in Connecticut is just a continuation of the shift in market share towards the largest grocer in the world: Wal-Mart. In 2003, a study by Retail Forward, entitled “Wal-Mart Food: Big, and Getting Bigger,” pointed out that just ten or fifteen years ago, “Wal-Mart was barely on the food radar screen. Virtually overnight, the retailing behemoth has become the dominant grocer in America.” In 2003, Wal-Mart sales were bigger than the combined sales of the top ten U.S. supermarket retailers. “Wal-Mart has the proven ability to quickly blanket a market with its multi-format approach,” said Retail Forward, “to become a dominant---if not leading—market share player in rapid fashion, wreaking havoc for the incumbents.”
The latest incumbent is Shaw’s supermarkets. Seven years ago, Retail Forward predicted that “for every Wal-Mart supercenter that opens in the next five years, two supermarkets will close their doors. As a result, the supermarket industry is projected to lose 2,000 more stores over the next five years.” The consultant concluded that grocery stores can survive, but “the key is to be what Wal-Mart is not.” The analysts will say that Shaw’s failed to find a “distinct positioning strategy” that set them apart. But the fact is, the Connecticut market is saturated with grocery stores, and most of Wal-Mart’s stores still do not carry a full line of groceries--so the problem will get worse if Connecticut communities let Wal-Mart build more superstores.
Readers are urged to copy this article and send it to their local city or town officials with the following note: “When Wal-Mart files a proposal for a superstore in our town, please learn from the lesson of Shaw’s supermarkets, and understand that a Wal-Mart opening merely leads to to other stores closing. It does not happen overnight---but it happens---and when it does, people lose their jobs, and no added value comes to the local economy. It’s just an unproductive game of retail musical chairs, and shifting market share. Wal-Mart sales comes largely from other cash registers. If you understand that, then you behave differently when the superstore comes knocking on your door.”
Posted by Al Norman | Permalink
Last week we told you about Walmart firing 300 workers from its headquarters staff as the company goes through a major restructuring. The 300 jobs were just the tip of the iceberg, with 10 Sam’s Club stores closing, a major layoff of 11,000 workers at Sam’s Club stores, and a new decentralized set up for the company that will shift many jobs away from the main office in Bentonville to regional offices.
When we told you about those 300 layoffs, we wondered if there might by more job losses on the way. As it turns out, there may be. The Northwest Arkansas Times reports that as the company starts creating regional offices and moving positions there, jobs in Bentonville will be eliminated. According to the article,
“some headquarters staff members will face a choice of relocating, looking for other jobs or retirement, according to several people familiar with the situation.
Wal-Mart declined to put a number on positions that could be moved out of Bentonville. Those decisions will be made case by case and it will take time to figure out what works for each area”
We’ll certainly be keeping an eye on this transition to see how it affects the company. We can only hope that Walmart does all it can to ensure that jobs aren’t eliminated unnecessarily, or workers aren’t pushed out of their jobs. Walmart has a reputation, after all, for pushing workers with seniority out to reduce the cost of salary and benefits overall. It’s one of the reasons Walmart has such a high turnover rate.
Posted by Media Team | Permalink
Did you catch “Undercover Boss” after the Super Bowl? It’s a new reality show on CBS where executives go undercover at their own companies and work entry level jobs to see what it’s like. In the first episode, Waste Management’s President and Chief Operating Officer Larry O’Donnell works several different jobs over a week and discovers how tough life can be for his employees. He also discovers how his policies have affected workers.
It’s nice to see a show that uncovers these kinds of problems in the American workplace. Of course, most of us already know how tough work can be, but most of us don’t have a reality show. That’s why American Rights At Work started Fix Our Jobs which is pushing for real, systematic reform in our workplace, not just feel good TV moments. They’re asking folks to sign a petition to congress: “America’s workers need a voice on the job so they can fight for fair pay, real benefits, reasonable hours, and better working conditions. We need to fix our labor laws now!”
They’re also asking for stories about your job, good or bad. We’re sure you all have some stories to share, so go check out the site. You can also watch a video they put together just to the right.
We also want to hear from Walmart workers. Tell us your stories from work. What would Mike Duke find if he came to work as a greeter at your store for a day or two? Would he make the cut as an overnight stocker?
Would Mike Duke ever take on this kind of undercover assignment? We don’t think so, but if he did, we’re sure he’d find some pretty disturbing stories, just like Larry O’Donnell did.
Posted by Media Team | Permalink
Walmart is certainly shaking things up recently. A week ago, Walmart laid off more than 11,000 of its Sam’s Club workers. Two weeks before that, Walmart closed down 10 Sam’s Club stores putting 1,500 jobs at risk. Since the Sam’s Club layoffs, Walmart has announced other substantial institutional changes like splitting its US operations in to regions and establishing a global online organization.
Then today, Walmart announced it would laying off another 300 employees from its Bentonville, Arkansas headquarters. Just about a year ago, Walmart laid off between 700 and 800 workers from headquarters.
Between the two layoffs, Walmart has let go around 9% of the 12,000 headquarters staff.
The positions being eliminated this time around were in the corporate affairs, finance, human resources, information systems and legal departments.
We’re always concerned to hear about layoffs, especially from a company that is doing so well right now, racking up billions of dollars in sales.
With a 10% cut in Sam’s club staff, and a nearly 10% cut in headquarter staff, are there more layoffs on the way?
You can read more about the layoffs, and the memo from Mike Duke from the Associated Press here.
Posted by Media Team | Permalink
It’s been a rough few weeks for Sam’s Club employees. First came the announcement that ten Sam’s Club stores would close and the 1,500 employees who worked there could lose their jobs. Then, yesterday, Walmart announced they would be laying off 11,200 workers. Most of those being laid off demonstrate products in the stores. Walmart’s spokesperson made it clear that this wasn’t about the economy, or the employees performance, rather, they were outsourcing the jobs to Shopper Events a company who’s only purpose is to demonstrate products in Walmart stores.
Walmart has suggested that the 10,000 employees they are firing can apply for a job with Shopper Events, who will be hiring roughly 10,000 employees to fill the gap left by the lay off. It sure sounds a lot like Walmart is asking 10,000 of their employees to reapply for their own jobs.
Here’s our official statement:
For Immediate Release: January 25, 2010
Walmart Sam’s Club Lowering Worker and Community Standards
Layoffs Raise Important Questions About Commitment to its Workforce
(Washington, DC) – The following is a statement from Wake Up Walmart:
Walmart launched another assault on living and working standards in communities across the country yesterday, by laying off more than ten thousand Sam’s Club employees. The company is outsourcing jobs, many of them part-time, to a company based in Arkansas.
Workers report that Walmart called them into mass meetings where they were offered boxes of tissues and told they were no longer needed by the nation’s largest private employer.
The mass layoffs raise serious questions such as whether or not older and more senior workers were targeted for lay off. Why hasn’t Walmart made a clearer path to employment with Shopper Events for these 11,000 associates – which they clearly have the power to do? And for workers hired by the outsourced company, what kind of jobs will Shoppers Events provide to the new applicants? Why is Walmart telling workers they must agree not to pursue age discrimination claims in order to qualify for severance pay?
Walmart and Sams Club workers seeking additional assistance and answers are encouraged to contact Walmart Workers for Change at 866-587-2299 or log on to http://www.walmartworkersforchange.org/.
Posted by Media Team | Permalink
It’s like deja vu all over again. Alderman Brookins is still pushing for another Wal-Mart store in Chicago. This time he is ratcheting up the pressure on his fellow city council members to support the South Side project.
His message is clear: build a Wal-Mart store and soon there will be hundreds of high paying jobs and Chicago will become a retailing utopia.
Unfortunately, most Wal-Mart jobs are low wage and part-time. On our speak out website, veteran employees—some who have worked for the company over 10 years—describe how Wal-Mart is using the recession to cut hours like never before. As in...let’s hire 500 people to inflate our job numbers to the press, while cutting everyone to 10 hours a week.
As we outlined in our urban campaign, Wal-Mart is just not a good fit for the city of Chicago. According to the UC Berkeley Labor Center, “There is strong evidence that jobs created by Wal-Mart in metropolitan areas pay less and are less likely to offer benefits than those they replace.” In addition, analysis by Civic Economics concludes “For every $100 in consumer spending with a local firm, $68 remains in the Chicago economy...For every $100 in consumer spending with a chain firm, $43 remains in the Chicago economy.”
City leaders have done a good job so far of keeping another Wal-Mart out of Chicago. Now is not the time to give in to pressure from Wal-Mart lobbyists and Alderman Brookins.
Posted by Research Team | Permalink
The U.S. International Trade Commission has made an announcement, and that announcement is one we shouldn’t be surprised by at this point. The ITC has ruled that U.S. tire companies are being harmed by cheap products from China, and as a result President Obama will have to decide whether to impose tariffs or quotas on the country that, thanks to Wal-Mart, is now America’s largest source of imports.
Of course, Wal-Mart’s tire business isn’t the only factor behind the ruling, but it certainly is one of the biggest. China sent 21 million tires to the U.S. in 2005, and that more than doubled to 46 million by last year. For its part, Modern Tire Dealer reports that Wal-Mart Stores Inc. has close to 3,200 outlets selling tires, although most of those sales are concentrated in its approximately 2,435-store Tire & Lube Service Centers nationwide.
The (United Steelworkers) union said China has more than tripled its tire exports to the U.S. between 2004 and 2008, ending jobs for 5,100 American workers. The union said another 3,000 workers would lose their jobs by the end of the year.
The next move for the ITC will be to come up with come up with recommendations on what the President should do to help U.S. companies, including a couple familiar names based in Ohio - Akron-based Goodyear Tire & Rubber Co. and Findlay-based Cooper Tire.
The case is the first test for Obama on trade with China, after he vowed during his presidential campaign last year to help unions or domestic industries seeking relief from foreign competition. Since the election, he also has pledged to avoid protectionism so as not to exacerbate the global recession.
U.S. agency rules for tire producers in China case [Bloomberg News]
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Posted by Corey Himrod | Permalink
Not long ago, we reached out to our Wal-Mart Watch communities in New York, Los Angeles, and Chicago, asking them to contact their city councils and urge them to continue to oppose Wal-Mart’s moving into their cities. Combined, the populations of Chicago, NYC and LA house nearly 15 million people, or roughly 5% of the U.S. population.
For years, Wal-Mart has tried to build stores in those and other urban centers including Detroit, Washington, DC, and Boston. Building stores in these cities represents one of the last few rich avenues for domestic U.S growth open to Wal-Mart, but to this point it’s been one big, giant FAIL.
Since submitting our request, over 25,000 letters have been sent to the city councils in LA, New York and Chicago. And below is an example of the responses those letters have been generating - this one is from David Yassky, a member of the New York City Council currently running for New York City Comptroller:
Dear Neighbor:
Thank you for your concern regarding the recent proposals to open Wal-Mart stores in New York City. I agree that this is not the answer to our City’s economic problems, and I am concerned by the company’s poor track record regarding the treatment of its employees and its devastating effect on local businesses. Small businesses are the life-blood of our City and as the Chair of the City Council’s Small Business Committee, I will fight against the development of new Wal-Mart stores that bring more harm than good to a community.
Moreover, I strongly support passing the Employee Free Choice Act. This legislation would be an important safeguard against employee abuses. The Employee Free Choice Act would promote better working conditions and benefits for those who need it most: New York’s working families. I will continue to support this legislation and employee rights whenever I have the opportunity to do so. Thank you again for your interest.
Sincerely,
David Yassky
Council Member, 33rd District
We’ll keep updating you as we continue to get more responses. Until then, you can check out more on Wal-Mart’s Urban Problem here. What these cities need now are jobs that pay a living wage, good health benefits that keep people healthy and productive (and off public health care), and thriving small businesses that give back to their communities. Wal-Mart need not apply.
Posted by Corey Himrod | Permalink
It isn’t EFCA, but this week the Oregon legislature took its own step towards ending employer intimidation towards employees seeking to form a union. The Oregon Senate passed Senate Bill 519 - the Worker Freedom Act - by a 16-14 vote. The vote nearly split down party lines, with 16 Democrats voting in favor, and 12 Republicans (plus two Democrats) voting against. The measure now moves to the Oregon House, where a similar bill passed in 2007.
Senate Bill 519, which moved to the House on a 16-14 vote, bars businesses from requiring workers to attend company-organized meetings about politics — including union organizing — and religion. There are exceptions for churches and political parties.
The House bill passed 31-27 in 2007, and five more Democrats have since joined the state house. So, needless to say, the measure’s chance of becoming law are looking pretty good.
With public and legislative support behind the bill - 88% of Oregonians, in a December poll, said they did not think an employer should be allowed to force workers to attend meetings about the employer’s opinion on politics, religion, or union organizing - Oregon’s AFL-CIO President appeared surprised in an April email alert that Republicans were fighting the measure so strenuously. As you will note, the bill doesn’t bar the meetings from taking place - it simply bars employers from taking retribution against employees who choose not to attend meetings on politics, religion or union organizing during work hours.
“SB 519 simply states that an employer can’t discipline or fire a worker for opting out of a meetings on one of these topics. Are our Senators, and are the business associations who opposed this bill, upset that we are limiting their right to fire a worker who disagrees with their political or religious views? That’s all this bill does.”
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Posted by Corey Himrod | Permalink
While Wal-Mart has announced more retail jobs for the United States, the company continues to draw nearer to an agreement that would send IT tech jobs to India.
From Citizen Economists:
In 2009 it (Wal-Mart) now predicts it will add another 22,000 positions nationwide. In fact in some hard hit states like California, Florida and Michigan, Wal-Mart plans to add over 1,000 jobs in each.
More jobs are great, but the majority of them are going to be of the lower-paying, sales associate variety. Meanwhile, however, Wal-Mart is drawing nearing to awarding multiple outsourcing contracts for managing its business applications and other back office activities to firms in India. The contracts could be worth $500 million.
According to BusinessWeek, Wal-Mart is doing so under the guise of “globalizing its information technology sourcing initiatives,” which is certainly its prerogative. But you would think that a U.S. company that has sought to build its standing as the very embodiment of American ideals would, during times of economic struggle, take an opportunity like this to find domestic firms to fulfill its IT needs. Provide hard working Americans with higher paying jobs. You would think that. But you’d be wrong.
“Wal-Mart has been testing the waters by outsourcing smaller projects to companies such as Infosys, TCS and Wipro. Now, the retailer wants to flesh out a more comprehensive outsourcing strategy and has shortlisted these tech vendors,” said a senior executive of one of the tech firms exploring business opportunities with Wal-Mart. He requested anonymity because he is not authorised to speak to media.
Wal-Mart, despite enjoying growth during the current economic climate, continues to show that while saving customers money is nice, saving its own money is paramount. BusinessWeek points out that UK retailer Tesco saves over $60 million every year by outsourcing its IT projects to India.
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Posted by Corey Himrod | Permalink
Each week, our speak out website continues to be resource for employees around the country. The daily stories, commentary, and input from these people provides inspiration for other employees to discuss the company’s unfair policies.
This week, we received numerous heart wrenching, outrageous, and shameful stories that will surely make your blood boil. This week’s stories include discrimination, the move to part-time status, overworked associates, and the bogus claim that Wal-Mart is helping communities.
Our first story comes to us from an anonymous worker in Texas who witnessed discrimination against a disabled associate…
I work for a Wal-Mart store in Texas. I was made aware of a situation involving a mildly mentally disabled worker and a new district manager with a reported ‘zero tolerance’ towards disabled employees. This particular disabled employee has been a loyal and hard-working asset to our store for many years now. One day I realized that I had not seen this employee for a couple of weeks and asked around the store to see if anyone knew where he was. I was told by multiple store employees that he had been forced to leave his daytime shift and go overnights by the new district manager because he was not ‘the face’ that he wanted to represent Wal-Mart. This particular disabled employee was given no reason or choice in regard to this decision. Needless to say, he was extremely disturbed by this course of action.
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Posted by Research Team | Permalink
Over the past few months we’ve heard endlessly about the good auto and manufacturing jobs that are disappearing from America by the thousands. Today, we hear bittersweet news: we are adding some jobs, but they’re Wal-Mart jobs.
Wal-Mart announced it would “create” 22,000 domestic jobs in 2009 (a number that’s actually down 11,000 from last year.)
As usual, most of the news stories read like Wal-Mart press releases, and avoid some of the real questions. How many local businesses will have to cut jobs because of new and bigger Wal-Marts? How good are the jobs being created? How much worse are they than the jobs they are replacing?
In its press release, Wal-Mart indicates that eight states—Arizona (1,300 jobs), California (1,000 jobs), Florida (1,300 jobs), Michigan (1,500 jobs), New Jersey (1,200 jobs), South Carolina (1,000 jobs), Utah (1,200 jobs), and Virginia (1,100 jobs)—will benefit the most. While this may seem like a grand achievement and a boon for these states, there are undoubtedly hidden costs associated with this job creation.
Wal-Mart’s use of public health assistance programs is perhaps the most obvious example. In those states that track employer use of Medicaid and SCHIP programs—25 in all—Wal-Mart tops the list in each one. In 2008, Wal-Mart said 3.1% of its workers were getting health care from Medicaid and other state programs. Therefore, out of the 22,000 newly created jobs, 682 workers will likely need taxpayer assistance to meet their health care needs. And that’s just the new jobs, Wal-Mart already has thousands of current employees utilizing these programs.
Overall, It’s difficult to figure out how much Wal-Mart really costs the American workforce by replacing good jobs with low-wage, low-benefit jobs. However, using available Medicaid data, it’s possible to estimate how much money Wal-Mart costs the states mentioned in its press release.
According to the Kaiser Family Foundation, which compiles data on how much money states are spending on their Medicaid and SCHIP programs, total spending per Medicaid enrollee in FY2006 was $4,575 and this number varies by state.
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Posted by Brendan Gaffney | Permalink
Back in March, Wal-Mart decided to close its South Columbus optical lab - laying off 650 workers in the process - a move that had state officials considering ways to recoup a $1.8 million job-creation tax credit the company received back in 2002. Well, Wal-Mart has decided that Ohio can just have its money back, if the state is going to put up such a fuss.
Wal-Mart Stores Inc. has given Ohio $1.7 million as repayment for a tax credit on an optical lab that the company closed in March. Ohio had provided the world’s largest retailer with a $1.8 million job-creation tax credit in 2001 on the condition that the company create and maintain jobs at the facility.
Wal-Mart’s initial move to close the lab caused controversy because the closing came just months after workers were told “the facility wasn’t going to close and jobs weren’t going to be cut.” Instead, it was straight to the unemployment line for 650 newly jobless Wal-Mart employees.
“Without it, I don’t know what we’re going to do,” Emily Hale said, a West Side resident who had worked at the plant since it opened seven years ago, as she stood outside the plant’s door, holding her layoff papers as tears rolled down her face. “There are no jobs out there. I’m afraid of what’s going to happen next.”
According to the Columbus Dispatch:
The company said the closing will allow it to expand its optical operations in Indiana and Arkansas and add a combined 100 jobs. Wal-Mart said it will continue to operate an optical-accessories distribution center locally, with about 70 workers. Calls to Wal-Mart were not returned.
Wal-Mart repays state $1.7 million [The Columbus Dispatch]
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Posted by Corey Himrod | Permalink
Wal-Mart has agreed to revise a plan on a payroll cut involving 2,000 mid-level managers across its outlets in China after a trade union stepped in to mediate, state media is reporting. Here’s a quick recap of today’s stories. You can find our previous posts on the issues here and here.
Row at Wal-Mart China settled after unions step in [MarketWatch]
Wal-Mart China had planned to relocate about 2,000 mid-level managers at existing stores to new stores it planned to open, the China Daily reported in its online edition Friday, citing a senior official at the Shenzhen Federation of Trade Unions.
The report said the workers union became involved after Wal-Mart employees reported that senior management announced the relocations under threat of demotion or dismissal, the report cited the federation’s Vice Chairman Wang Tongxin as saying.
Wal-Mart Bows to Union Pressure on China Restructuring [Wall Street Journal Blogs]
Wal-Mart (WMT) has made adjustments to its restructuring plans in China after objections from the state-backed All-China Federation of Trade Unions, state media reported today.
Last week, the company said it planned to trim management positions, a move that would have involved 1,400 (about 2.5%) of its employees in China. The affected employees would have faced pay cuts, relocation to other stores or possible job losses. This upset union leaders, who said their members hadn’t been consulted. (Under government pressure, in 2006 the famously union-resistant Wal-Mart allowed unions to form in China).
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Posted by Corey Himrod | Permalink
In China, Wal-Mart’s “job optimization” program was just a fancy way of saying you’re fired. That is, until the country’s government-run trade union stepped in.
Earlier this month, Wal-Mart announced it could need to slash some mid-level executive positions in an effort to adapt to “the changeable market situation.” At the time, however, company officials refused to say how many people would lose their jobs. The plan that was ultimately unveiled was dubbed the retailer’s “job optimization and regrouping” program, aimed at relocating some mid-management staff to similar posts in new stores.
Angry staff affected by the plan were not buying it, however, and labeled the program as a “de facto layoff plan.” In fact, managers included in the optimization program were actually given three options: demotion with reduced salary, relocation, or leaving the company with compensation - with those choices, Wal-Mart was obviously aiming to trim staff.
“I came to work for Wal-Mart in my 20s. I have been always working hard and never made any major mistakes. I am now pushing 40. If I have to leave Wal-Mart, I really don’t know where to find another job.” said a department manager at Wal-Mart’s Shekou store in Shenzhen.
The optimization program has been thwarted for now, however, as the country’s government-run trade union stepped in and blocked the restructuring. That decision came after over 50 staff protested the plan at Wal-Mart’s headquarters in Shenzhen, China.
“Three mid-level executives came to my office this morning and told me the plan was shelved and they have resumed their work,” Xinhua news agency quoted Yang Fengzhi, a union official in northeast China, as saying. The managers in Jilin province, who earlier had been told they would be laid off, were asked to return to work after the union stepped in, the report said.
See, but that’s the thing. China is what it is, yet for all we complain about that country’s methods of doing things, workers there can still band together to fight for their jobs. Yet here in the land of the free, Wal-Mart workers attempting to flex their muscles will find themselves quickly unemployed.
What do you think? Does it make sense that workers in China have more rights that those right here at home?
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Posted by Corey Himrod | Permalink
In recent weeks we’ve seen more and more letters and columns in newspapers coast-to-coast speaking out in favor of Employee Free Choice to revitalize America’s middle class. They all share one common theme: America’s workers have gotten the short end of the stick the last few decades and it’s time for a change. Interestingly, some small business owners are also getting in on the act: one from increasingly pro-worker Colorado pulls data from the Small Business Administration showing that small businesses are less likely to go bankrupt in states with higher unionization. Letter and column-writing campaigns from sectors as diverse as workers, small businesses, academics and others show that a groundswell of popular support exists for leveling the playing field.
Terri Monley of Gate City Moving company in Denver writes in the Denver Post:
Small Business Administration data show that small businesses are less likely to go bankrupt in states with higher unionization, and that’s a big reason why I support the Employee Free Choice Act. It’s a simple formula for me and my business: When more workers have better jobs with higher wages, then more money is going into the local economy. That’s more money that will go to my business, and more money that I will then spend with other small businesses in Colorado.
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Posted by Chris C | Permalink
The Columbus Dispatch is reporting that Walmart’s decision to close its South Side optical lab - laying off 650 workers in the process - has state officials considering ways to recoup a $1.8 million job-creation tax credit the company received back in 2002.
The 650 worker layoff is apparently the largest mass layoff in the region since the economy began to flounder in mid-2008.
The Ohio Department of Development awarded Walmart the tax credit when it opened the lab in 2002, on the condition that the company create and maintain jobs there for a certain number of years, department spokeswoman Kelly Schlissberg said. State officials are reviewing the agreement to determine whether Walmart held up its end of the bargain, she said. If Walmart is found to have broken its agreement, Schlissberg said, the state could go after the company to recoup its money.
Needless to say, the State of Ohio isn’t pleased with the layoffs, especially when just a couple months ago workers were told “the facility wasn’t going to close and jobs weren’t going to be cut.” Now, it’s to the unemployment line for 650 new jobless Walmart employees.
The company has said that laid off employees will be eligible for positions at nearby Walmart and Sam’s Club stores - little consolation for the optical lab employees who would face pay cuts and part-time status as regular Walmart associates.
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Posted by Corey Himrod | Permalink
Senator Arlen Specter (R-PA) announced yesterday that he would not be supporting the Employee Free Choice Act. In actuality his decision will not only affect the bill itself, but it could first and foremost affect the ability of Congress to even vote on it, because without his vote Conservatives could filibuster the poor thing to death.
When legislation like the Free Choice Act is introduced in the Senate - assuming it makes it to the floor - there eventually takes place debate between Senators as to whether the legislation should be passed. This debate can go on indefinitely, most commonly referred to as a filibuster and taking the form of an exceptionally long speech (as in one lasting for a day or days, or a series of such speeches) to prevent the legislation from moving forward...and that, my friends, is where Senator Specter would come in. Sixty votes are needed in the Senate to enact what is called cloture - basically this sets a deadline for debate to end, after which a final vote is made. Senate Democrats currently have enough votes to pass the Employee Free Choice Act, but without Specter, there appears to be only 59 Senators that would vote for cloture - one fewer than needed to end debate and take the legislation to a final vote. Senator Specter announced his decision yesterday on the Senate floor:
The problems of the recession make this a particularly bad time to enact Employees Free Choice legislation. Employers understandably complain that adding a burden would result in further job losses. If efforts are unsuccessful to give Labor sufficient bargaining power through amendments to the NLRA, then I would be willing to reconsider Employees’ Free Choice legislation when the economy returns to normalcy.
Basically, the Senator had big business screaming at him from one shoulder, and labor from the other...and business (and Conservatives) won. Some, however, noted that while he decided not to support the bill this time, he did identify a need to reform labor law as it currently stands.
Democratic Senator Edward Kennedy, chairman of the Health, Education and Labor Committee, said, “It’s disappointing that Senator Specter feels he cannot support the Employee Free Choice Act in its current form, but I welcome his recognition of the urgent need for labor law reform...I look forward to working with my colleagues on both sides of the aisle to find the best way to move forward with this important legislation.”
Republican opposes US labor bill, may doom measure [Reuters]
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Posted by Corey Himrod | Permalink
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