Monday, March 31, 2008

the rant

It seems absurd to me that a company can blatantly disregard so many legal and ethical "rules" and not experience significant repercussions. Wal-Mart treats their employees like dirt; they spy on them, they pay them miserable wages (delete time off their work cards so they don't have to pay them), and have been charged with so many accounts of abuse I could write a dissertation on them all.. not to mention the impact this super-store has on the general public. Wal-Mart's meager health care plan forces employees to either go uninsured or to depend on the government. The government (essentially the taxpayers) spend thousands of dollars each year on Wal-Mart employees alone. Those programs are for people who need help, not to help Wal-Mart out because they don't want to spend their money on their sick employees.

I'm disheartened with the fact that fewer people do not inform themselves about where they shop. I don't expect everyone to sit down and research every place they shop, but I think it's important that we stay informed about things that influence our lives. Wal-Mart has a strong impact on the economy, on the labor market, and on the goods people are bringing into their homes. We need to start paying attention so that we are able to have the bright tomorrow we deserve.

Friday, March 28, 2008

just the facts:

Top ten, in no specific order..
1. The average supermarket employee makes $10.35 an hour, the average Wal-Mart salesclerk makes $8.23/hr.
2. There are no unions in Wal-Mart, at all.
3. As of 2005, Wal-Mart was the second largest corporation in the world (following closely behind Exxon Mobil).
4. Wal-Mart drives down retail wages approx. $3 billion every year and reduces the take home pay of retail works $4.7 billion/yr.
5. The Walton family has given less than one percent of their wealth to charity, compared to Bill Gates who has given fifty-eight percent of his wealth to charity.
6. Tax payers feel the burden of the supercenter too- Wal-Mart costs taxpayers $456 million yearly soley through the use of health care programs.
7. The average work week is 34 hrs, resulting in only $17,114 per month, which is significantly below the poverty line for a family of four.
8. Wal-Mart employs approximately 1.7 million people worldwide and makes $312 billion dollars in sales per year
9. The corporation maintains a 24/7 anti-union hotline as part of their efforts to prevent organization.
10. The national average super center/grocery store employees pay 16% of health care costs; Wal-Mart employees pay 42% .

Thursday, March 27, 2008

what the experts say...

1. The Democratic Staff of the House Committee on Education and the Work force has been quoted stating they believe that "Wal-Mart, in its efforts to achieve and maintain low prices, has come to represent the lowest common denominator in the treatment of working people."
2. Jon Hunter, a hardware store owner who was put out of business by a Wal-Mart says, "any time a Wal-Mart is coming into a town, they knock the values down because sooner or later there's going to be a bunch of empty buliding and none of them are going to be able to sell."
3. "Outsourcing may be good for the economy, but it hurts many Americans...they need their jobs to feed their families, pay the rent, and take care of bills."
4. "Any increase [Wal-Mart generates] in employement, sales, and property tax receipts is offset by job losses at competitors and other business closings."
5."Critics have called [Wal-Mart's health plan] a plan that only makes sense for healthy people."
6. Walmart "deliberate[ly] understaffs...[has an] obsession about time theft, [encourages] its management spies and arbitrary punishments."
7. "Wal-Mart is a corporation that seeks to maintain profits by keeping its employees on the edge of poverty."

(My articles are in my locker so I can't say who wrote them all.. but I'll put those up asap).

second argument

The argument that tends to evoke a more emotional response is the issue of employee relations. Wal-Mart obviously strives to provide customers with low prices, but how can they afford to do so? A basic answer is: by cutting corners, keeping wages low, and seducing the customers into buying in bulk. The latter reason is universal to most supercenters, the former two, however, are (more) unique to Wal-Mart. Wal-Mart blatantly defies workers right to unionize by going so far as to maintain a hotline service that allows managers to call 24/7 in case they suspect union actions. They have faced law suits for using illegal surveillance for the purpose of monitoring employee activity and to prevent any unions from forming. One of the more disturbing things I thought was(okay so a few of them were..) that managers are told to delete work time off timecards or take whatever measures necessary to minimize labor costs. Another thing that disgusted me was that women who are hired are paid unequal wages for equal work. Wal-Mart also has frequently hired illegal workers to clean their stores afterhours and has faced charges for keeping them locked in the stores overnight. Wal-Mart has cleverly developed a system that makes it so most employees are part time workers, (if full time work week requirements is 34 hours, they schedule everyone for 32 hrs/wk.) In doing this, they have relieved themselves from any duty to give workers benefits (most importantly, health insurance). The eligibility waiting time for part-time workers is something like two years, something that discourages many pepole from applying. Also, Wal-Mart relies on a high turnover rate for employees so they don't have to continue giving bonuses and "waste" their money. Wal-Mart may create more job opportunites but who wants to work for an employer like that? Getting paid next to nothing, to work for a company that monitors your every move, and the longer you stay there the more you have to watch you back. Gee sounds like I know where I'm applying for my summer job!

Tuesday, March 18, 2008

Economic impact of Wal-Mart is shocking...

I'm not entirely sure that the economic impact is the best reason that Wal-Mart is bad for society, yet it definitely is supported with the most facts. (Personally, I dislike the unethical policies used to just get ahead: the cheating people from wages, unequal pay, etc.) In any case, the economy is effected by the existance of Wal-Mart and especially with the economy as unstable as it is now, this is very important. True to their word, Wal-Mart provides cheap goods for people across the world. Thanks to this Wal-Mart has a gross income of .. well, billions of dollars. Instead of pumping that money back into the economy, by paying workers well, (giving them money to spend on other products, completing the natural economic cycle) Wal-Mart essentially sits on the money and lets it grow. Furthermore, the Walton family has given less than one percent of their wealth to charity, compared to Bill Gates who has given fifty-eight percent of his wealth to charity. Wal-Mart is not just cheating workers when they erase times from their work cards or force them to work overtime for free, they are cheating society at large.

Wal-Mart does create jobs to help unemployment, that much is true. With their outsourcing to make products and then hiring laborers at cheapest prices possible to sell their goods, it is no wonder small towns protest and petition to not have Wal-Marts intrude in their space. Not only does it take away from Mom-and-Pop shops, but anytime a Wal-Mart moves into a town, they push down the values of the stores there because sooner or later there is going to be a bunch of empty buildings that are not going to all sell (with Wal-Mart as a competition many stores do not survive).

Wal-Mart argues that the jobs the create and the money they generate helps the economy, even is beneficial in this economic crisis we are currently in. However, this is just as misleading as their "save money, live better" slogan. While customers might be saving money in the short term, their lives are not being "bettered" as implied. In fact many employees cannot even afford the clothes/goods sold at Wal-Mart because their wages are too low and they cannot splurge that much. That alone should tell people there is a problem here; something is not right.

Sunday, March 16, 2008

The Pros and Cons of Wal-Mart

Wal-Mart proponents argue that Wal-Mart's policies and behavior help the economy and the general public. Wal-Mart supports the raising of the minimum wage, despite the fact it wouldn't effect many of the workers who (supposedly) are paid double minimum wage. However, Wal-Mart has faced many law suits and accusations of unpaid work or for deleting time off work cards. So are the employees really getting paid minimum wage? Opponents of Wal-Mart also say that the company forces employees to work overtime, quite often without pay.

In response to complaints about heath care opportunities, Wal-Mart has taken action to increase health care options. Who benefits from said changes is another topic for debate. Wal-Mart supporters view the changes in favor of the employees while protesters see this change as detrimental for them. The health care is a big issue because for employees that Wal-Mart's health care options are not suitable, they have to choose from going uninsured or getting support from Medicaid. Opponents believe the new Wal-Mart health plan actually discourages people from applying; proponents, encourages.

Still, people keep shopping at Wal-Mart, people still apply for jobs there. Wal-Mart supporters argue that these negative things are more myth than fact. Regardless, it is undeniable that people continue to feed the growing corporation.

Thursday, March 13, 2008

Overview

My topic is about Walmart and it's effects on the American people and on the economy. There is a long-standing controversy surrounding Walmart and it's policies. Many people argue that Walmart has a negative impact on society; they argue that it harms the economy, employees, and by default, the customers. I became interested in the Walmart question quite a few years ago; I had never been to a Walmart (and still haven't) and I asked my mom why we did not shop there. She gave me a long explanation and then simplified it for me, basically they don't treat their workers well and the products they sell are cheap because they paid the laborers little to no money. All I really understood at the time was that Walmart was bad. One of my close friends on the other hand was a walking Walmart ad. She loved everything because it was cheap and "super cute." It was around seventh or eighth grade that I began to learn about the ethics and facts behind this controversy.

Recently, I also went to see the Off-Broadway musical Walmartopia. This was a parody on Walmart's attempt to "overthrow society." Walmart, just as all other corporations, essentially exists to make money. The problem that most people have with Walmart has to do with their tactics for providing cheap goods for people. Walmart outsources their goods and "cuts corners" to ensure their customers can "save money." Are they really living better though? Walmart pays their employees at minimum wage and has a reputation for treating their employees poorly. Many employees cannot even afford to buy things things from Walmart being they are living from pay check to pay check. Some towns (especially in Vermont) have been in the news for protesting the arrival of Walmart in their communities. During my research paper I plan to discover the effects of Walmart on society, both the economy and the people.