Wal-Mart Watch President Andy Stern Calls On Wal-Mart To Adopt Changes To Increase Shareholder Value
For Immediate Release
Wednesday, March 14, 2007
New York, N.Y. – Speaking before investment analysts for the largest commercial bank in the country, SEIU and Wal-Mart Watch president Andy Stern today declared that Wal-Mart’s low prices alone are not enough to sustain 21st century success.
Stern, who last month formed a partnership to push for universal health care with Wal-Mart CEO Lee Scott and other Fortune 500 companies, labor unions, and civic groups, said that he believes the company is genuinely committed to helping reform the American health system. But in addition, he said, Wal-Mart must work with others to improve retail employment policies, the economic and health care security of its employees and the country as a whole, in order to enhance the long-term viability of the company itself.
In a keynote address delivered today before the Bank of America Consumer Conference, Stern pointed out that Wal-Mart’s 20th century business model of Always Low Prices was not sufficient to continue sustained growth in this century. In recent years, Wal-Mart’s sales have slumped, the company has paid and now faces huge legal judgments on its employment practices, and is confronting significant setbacks to its plans to expand into urban markets, and attract new upscale shoppers.
Stern said reputation problems are now dogging Wal-Mart’s efforts to grow sales and expand its retail base.
“The biggest employer in the private economy is expected to be a model of positive leadership,” Stern said. “Wal-Mart as America’s largest employer needs to lead; to have an offense, and not be stuck, as they are now in many areas, in a defensive crouch.”
Stern reinforced his commitment to partnering with Wal-Mart for national health care reform, and indicated he will continue to challenge as well as offer to work with the company to develop a more “responsible competitiveness.”
“The time is now for us to develop a new, American health care system. If we’re going to be successful, corporate America must join this fight, and I am happy that Wal-Mart, AT&T, Kelly Services, and other business leaders have answered that call.” Stern said. “But when we announced the Better Health Care Together partnership last month, I made it very clear that I am still committed to immediately improving American workers’ employment-based benefits until fundamental change offers every American quality, affordable, health care.”
