Wal-Mart vs. Maryland - On Background

All eyes will be on Maryland over the coming weeks as the State Assembly gears up for an override of Governor Bob Ehrlich’s veto of SP 790, The Maryland Fair Share Heath Act. The “Wal-Mart Tax”, the estimated 1.5+ billion dollars spent each year by federal, state and local governments to provide healthcare, housing, school lunches and other services to Wal-Mart’s employee, meets its biggest challenge yet.

Get involved in the fight for Fair Share Healthcare. Click here.

Find and email your Maryland legislator to voice your support for the veto override.

Here is your guide to the upcoming fight, including the players, facts, rhetoric and realties of the upcoming fight. Download our full background memo here.

The Players:

Easy choice? Wal-Mart hosted a $1000 per head fundraiser for Bob Ehrlich in December, 2004. View the invitation here.

In April 2005, the Maryland State Assembly passed The Maryland Fair Share Health Act (SB 790) that would have compelled the states’ largest employers to increase their share of spending on healthcare for its employees, lessening the burden on public healthcare programs.

Maryland Governor Bob Ehrlich (R) promptly vetoed the legislation at a ceremony attended by Wal-Mart’s COO who said his company was “grateful” for the governor’s action. Gov. Ehrlich has received generous campaign funding from Wal-Mart, including a $1000-per-head reception hosted in his honor on December 15, 2004. View the invitation to the Wal-Mart reception here.

Wal-Mart is the largest corporation in the United States, with $10 billion in profit in 2004. Of its 1.2 million employees in the U.S., Wal-Mart has an estimated 14,301 working in its retail and wholesale stores and distribution centers throughout Maryland. These Maryland employees earned an estimated $270,333,508 in 2004.

Wal-Mart had planned on a further expansion in Maryland, including a 200 acre parcel of land Maryland’s Lower Shore. This and other projects are on currently on hold.

The Facts:

• Wal-Mart covers just 48% of its employees; other large employers (200+ employees) average 68%.
• Wal-Mart under-spends on benefits. Wal-Mart’s average per-employee expense is $3,100, according to testimony given by the company in 2004. By comparison, the average spending per employee in the wholesale/retail sector is $4,800.
• A Wal-Mart secret memo admits to 46% of its associates' children being on either Medicaid or being uninsured.
• SB 790 would require employers with over 10,000 employees to pay at least 8% of their total wages for health care. Non-profit employers would be required to pay 6%. Wal-Mart is not the only employer of over 10,000 employees in Maryland.
• If an employer does not meet these requirements, the difference must be paid to the Maryland Department of Labor, Licensing and Regulation. A $250,000 fine will be levied if employer does not meet the required health care payment.

Rhetoric & Reality:

• "It is unfair to have legislation that specifically targets a single entity or a single industry” --- Dan Fogleman, Wal-Mart Spokesman.
• In fact, Maryland’s other 10,000+ employers, including Northrop Grumman, Giant Foods and John Hopkins all meet the standards that would be required by SP 790.

Bullying: Wal-Mart Gears up for the veto fight

Wal-Mart COO Eduardo Castro-Wright is clearly pleased that his company's campaign cash has brought him so close to Maryland Governor Bob Ehrlich. -- May 19th, 2005

• In addition to funding Ehrlich's political battles, Wal-Mart has contributed $6,500 to Maryland state officials, including Gail Bates (Representative, district 9A), Nancy Stocksdale (Representative, district 5A), Nancy Jacobs (Senator, district 34), John Astle (Senator, district 30), and Sandy Schrader (Senator, district 13).
• A dozen Wal-Mart lobbyists now patrol the state captial in Annapolis, MD, adding 9 in October 2005 to prepare for the override battle.
• Distribution center pull-out warned. Wal-Mart COO Eduardo Castro-Wright has gone on record saying that the plans for the new development are contingent on the veto override vote.

Take Action

The events of the coming weeks are more than just Maryland vs. Wal-Mart, more than politics as usual. Wal-Mart is fighting so hard because they know that events in Maryland could be a bell-weather for similiar actions nationwide. You can work with Wal-Mart Watch to help ensure that the members of Maryland State Assembly stand up to Wal-Mart's aggressive lobbying efforts, campaign cash and strong-arm bullying tactics.

Email a Maryland Legislator to voice your support for the veto override.