Wal-Mart vs. the Unions

[NNN0LHI]

http://www.pbs.org/wgbh/pages/frontline/shows/walmart/transform/employment.html

With 1.2 million employees -- the nation's largest employer -- Wal-Mart is, in the words of historian Nelson Lichtenstein, a "template firm" for U.S. companies -- and thus has received much media scrutiny for its employment practices. Here is a closer look at the issue of Wal-Mart and unions, and a roundup of some of the charges that have been made in court against the retailer and the company's defense. Plus more on Wal-Mart's plans for becoming a "a leader in employment practices."

Wal-Mart vs. the Unions

In October 2003, some 70,000 union employees of the nation's three largest grocery chains went on strike in Southern California over their employers' plans to cut wages and benefits. The three chains -- Kroger, Safeway and Albertson's -- determined they could no longer be competitive in the Southern California market if they had to pay their employees as generously as they had in the past. Why? Because Wal-Mart, the biggest grocer in America, was coming to town. Though Wal-Mart had a presence in California for years, it had recently announced plans to introduce 40 Wal-Mart Supercenters -- 200,000 square-foot retail and grocery stores -- to the area. "The supermarkets themselves were terrified that they would be undercut -- severely undercut -- by Wal-Mart," says Edna Bonacich, a sociology professor at the University of California, Riverside, "and that it would drive them out of business."

In 2003, Wal-Mart paid its hourly associates an average of $9.64 per hour -- almost $10 less than the average hourly wage the California supermarket workers were receiving1. "We don't necessarily pay the exact amount that they do in terms of dollar per hour," Wal-Mart Vice President Bob McAdam tells FRONTLINE. "But we have a competitive package of benefits and pay that we believe is what's attracting people to work for our company." That "competitive package" includes profit sharing and 401(k) programs, the opportunity to purchase stock and to move up the corporate ladder. " don't always value the promotion opportunities that come with a job at Wal-Mart that might not be available for people with unionized job," McAdam argues. "Last year we promoted 9,000 of our hourly associates to management position."

Wal-Mart's arguments against unions originated with its founder, Sam Walton, who wrote in his 1992 autobiography: "I have always felt strongly that we don't need unions at Wal-Mart… . The partnership we have at Wal-Mart -- which includes profit sharing, incentive bonuses, discount stock purchase plans, and a genuine effort to involve the associates in the business so we can pull together -- works better for both sides than any situation I know of involving unions." Wal-Mart's official stance on unions, available on the Wal-Mart corporate Web site, is: "At Wal-Mart, we respect the individual rights of our associates and encourage them to express their ideas, comments and concerns. Because we believe in maintaining an environment of open communication, we do not believe there is a need for third party representation." snip

The Los Angeles Times reports that at the first sign of union activity, Wal-Mart managers are supposed to call a hotline, prompting a visit from a special team from Wal-Mart headquarters. Wal-Mart spokeswoman, Mona Williams, told the Times that such teams do exist, but says their purpose is merely to help managers respond effectively and legally to union efforts. Judges have ruled in cases across the country that Wal-Mart has illegally influenced employees seeking to unionize.

[NYC_SKP]

1. Walmart needs to fail as a business model, only we can make that happen.

By informing others and by refusing to shop there.

And by urging our legislators to pass fair trade legislation and other pro-domestic worker and consumer awareness laws.

[Dinger]

2. Yes, I Agree 100% (nt)

[mrreowwr_kittty]

3. K and R. nt

[madmom]

4. This is also the exact same thing foreign car manufacturers are doing to the

unionized big 3. There is no difference. The fact that people buy cheaper foreign cars is just helping this along. The non-union auto manufacturers are trying to bring down wages and benefits and along with that the standard of living. The best response to all of these employers is to be allowed to unionize and then build as strong a union as you possibly can. Remember united we stand works in this instance also!