Wal-Mart deserves the Nobel Peace Prize?

[Unspeaked]

From the Vancouver Sun:

Wal-Mart deserves the 2008 Nobel Peace Prize. And the Vatican may want to beatify the world's largest retailer.

CONSIDER THAT WAL-MART:

- Provides employment to 1.9 million people; the best defence against poverty is a job.

- Creates thousands of job opportunities for people in developing countries like China and India; this keeps hunger at bay in many households.

- Doles out hundreds of millions of dollars each year in dividends that help fund the retirement of millions of people; the company had sales in excess of $348 billion and a net profit of $11.3 billion in 2007.

- Sells food, clothing and other necessities to Canadians, Americans and others at prices that are 15 to 25 per cent below what other supermarkets charge; this helps millions of low-income families stretch their dollars.

- Pushes the inflation rate down and helps keep interest rates low; this comes in handy for millions of families when borrowing to buy a house or household appliances.

- Disburses $415 million in cash and in-kind merchandise annually to 100,000 charitable organizations around the world.

- Pursues environmental sustainability; sells more organic produce than most retailers; works with the Clinton Foundation to lower prices on sustainable technologies such as energy-efficient lighting and building materials; has opened the first in a series of high-efficiency stores that will use 20 per cent less energy than a typical Wal-Mart. And its proposed Vancouver store is more environmentally friendly than any building in the Lower Mainland.

All of this was made possible by Wal-Mart's innovations.

Read the rest here (http://www.canada.com/vancouversun/news/story.html?id=50f6f94e-d812-48fe-9388-e477b8718948&p=1).

[Blue Velvet]

We interrupt this advertorial to bring you some opposing views:

Wal-Mart is currently facing more than 80 lawsuits at various stages of the legal process. Four class action lawsuits have either been certified or affirmed since May of this year, and trial in a fifth recently commenced. These cases reveal a common thread of a centralized scheduling system that advises store managers on “preferred” staffing levels to run their stores. Evidence and testimony littered throughout the cases indicate a “corporate culture” and systematic approach for cutting labor costs by dictating managers staff below the “preferred” staffing levels and rewarding managers for keeping labor costs down. Some of the methods cited in the lawsuits used by managers to hold down labor costs include forcing employees to work off the clock, requiring workers to skip lunch and rest breaks and manipulating time and wage records. An internal audit performed by Wal-Mart in July 2000 indicated these types of violations were and had been a massive problem companywide for years. According to attorneys representing a class of employees in Minnesota, “Wal-Mart knew what they were doing, they knew they were doing it, and they were hiding the evidence to avoid liability.”iii The Fair Labor Standards Act (“FLSA”) of 1938 is the basis for wage and hour law in the United States, and requires employers to keep accurate records of all hours worked by employees. As individual states have adopted and often supplemented FLSA requirements, employers denying breaks or overtime pay are increasingly being held responsible for these violations. Individual state wage and hour laws now often protect workers’ overtime pay, prevent off-the-clock work, and guarantee meal and rest breaks. Wal-Mart, a massive and frequent violator of wage and hour laws, now finds itself defending its labor practices in legal battles across the nation. The potential financial impact of these cases and those still to come are massive, even for a behemoth such as Wal-Mart.

Despite numerous tweaks to their health plan, Wal-Mart simply cannot offer an affordable plan to cover its workers. Lagging behind industry averages, Wal-Mart's employees are subjected to unnecessary charges and fees; wait longer for coverage eligibility, and are forced to seek out public health programs to fulfill their health care needs. The Susan Chambers' memo, release in October 2005 by Wal-Mart Watch, reveals how Wal-Mart executives value saving a buck over the health of their workers. With around 50% of associates choosing to participate in their plans, the Wal-Mart health plan is simply not working.

Giving Inaccurate Testimony to FDIC. In an effort to advance its bid to open in-store 'industrial' banks, Wal-Mart gave regulators misleading statements about whether the company could muscle out the traditional banks already based in its stores. Wal-Mart told the Federal Depository Insurance Corporation -- the nation's bank regulator -- that long-term leases with banks blocked Wal-Mart from moving into commercial banking, because the "leases signed by banks were renewed at the discretion of the banks alone." After a report by Reuters, however, forced Wal-Mart to admit that leases with at least some banks could be renewed only if both the banks and Wal-Mart approve. Rep. Paul Gillmor (R-Ohio), a member of the House Financial Services Committee, said: "We are beginning to see a pattern of misleading or false statements from Wal-Mart with regard to their interests in branch banking." [Reuters, 5/9/06; Cox News Service, 5/11/06]
Sanctioned for Unethical Trial Practices. An October 1999 article in Corporate Counsel magazine cited "two dozen cases during the past 18 months" in which Wal-Mart had been sanctioned for discovery abuse, including one $18 million fine. In Texas, a judge who imposed sanctions for discovery abuse said: "Unfortunately, nefarious conduct is all too common in lawsuits in which Wal-Mart is a party." [Wilson v. Wal-Mart Stores Inc., 199 F.R.D. 207, 208 (S.D. Tex. 2001); ABA Journal, March 2002]

Wal-Mart Desperate to Keep Ex-Security Officers From Revealing Company's Surveillance Secrets. A Benton County judge Monday granted Wal-Mart a permanent injunction against Bruce Gabbard, a technician who alleged that a manager pressured him to find security leaks. The injunction replaces a previous restraining order Wal-Mart had against Gabbard and bars him from further disclosing trade secrets and other confidential information. Gabbard claimed in an April 2007 article in the Wall Street Journal that he worked on a team called the Threat Research Analysis Group, a unit of Wal-Mart's Information Systems Division. Gabbard further detailed surveillance activities that he said included infiltrating an anti-Wal-Mart group, investigating shareholders at McKinsey & Co. and monitoring computer activities of anyone connected to the retailer’s computer network, including suppliers. [NW Arkansas Morning News, 7/8/08]

Refuses to Release Median Wage. To defend its treatment of workers, Wal-Mart releases statistics on its average hourly wage for full-time employees. The store has never, however, published its median wage -- a data point that would give a clearer sense of what workers earn. Instead, the store uses misleading language that masks the fact that managers earn higher wages than floor workers -- a fact that skews the "average" wage of 'store associates' -- and refuses to release wage levels for specific job functions. [Walmartfacts.com]

Opposed Release of Health Insurance Statistics. In 2005, Minnesota legislators introduced a bill that would require state agencies to gather and publish data about whether the employees and family members of Wal-Mart and other large employers use the state's public assistance programs. Wal-Mart sent two officials to St. Paul to lobby against the bill, and sent legislators a two-page letter stating the company's opposition to the law. [Minneapolis Star Tribune, 6/2/05]

Misled Legislators About Pushing Employees to Public Assistance. In a letter to state legislators, Wal-Mart wrote that they "provide the mechanism for associates to remove themselves from public assistance" and that they "certainly don't encourage our associates to apply for public health benefits." Documents bearing the Wal-Mart logo, however, revealed that Wal-Mart issues printed "Instructions for Associates" that tell employees how to sign up for public assistance. Wal-Mart CEO Lee Scott has said: "There are government assistance programs out there that are so lucrative it's hard to be competitive, and it's expensive to be competitive." [Wal-Mart Letter to State Legislators, 6/20/05; Wal-Mart Social Services Documents; St. Louis Post Dispatch, 4/6/05]

Silences Suppliers About Wal-Mart Relationships. "Wal-Mart has imposed a wall of silence around its operations, its relationship with its suppliers, even around the operations of its suppliers ...The silence is backed by muscle, the threat of losing business with Wal-Mart." [Charles Fishman, The Wal-Mart Effect, 2006]

Uses Front Group to Lobby Against Port Security. Through a lobbying group, the Retail Industry Leaders Association (RILA), Wal-Mart opposed several port-security measures -- including proposals to make shipping containers more secure, to beef up inspections and to provide more prompt cargo information. According to Congressional Quarterly: "Why would Wal-Mart, the world's largest retailer, with its recently expanded in-house lobbying team, need to join a trade association? As it turns out, for largely the opposite reasons that other companies cite. The retail giant doesn't want to draw attention to its legislative agenda; it wants to use its membership in the Retail Industry Leaders Association (RILA) as a buffer." [Reuters, 4/6/06; Los Angeles Times, 4/6/06, CQ Weekly, 5/1/06]


http://walmartwatch.com/

[gkarris]

Yea, I hear in the smaller towns, when a Wal-Mart moves in, many of the smaller local business, unable to compete, shut down, and the overall average wage of the area goes down as well...

[gilkisson]

The reporter used this as a supporting reference:

"The philosophers have only interpreted the world in various ways," Karl Marx said

Thereby destroying any credibility in the entire story, IMO. Saint Wal-Mart? WTF? They wouldn't even dare try to buy this ad.

[gilkisson]

Yea, I hear in the smaller towns, when a Wal-Mart moves in, many of the smaller local business, unable to compete, shut down, and the overall average wage of the area goes down as well...

I live in one of those smaller towns. I have seen it first hand. Main Street was for years a ghost town alley.

[leekohler]

WalMart is more like a cancer than anything else. Their low prices come with many consequences, all of which seem to have already been listed in this thread. I'm appalled that anyone would suggest they receive a Nobel Prize.

[és:]

Watch the movie at www.storyofstuff.com

[gilkisson]

The article was by Fazil Mihlar, the senior editor at the Sun. According to
http://en.wikipedia.org/wiki/Vancouver_Sun:
The Vancouver Sun is owned by media giant Canwest Media who has historically been right of center. In the 2006 election, the Sun supported the Conservatives party. The editorial board has consistently supported the center-right BC Liberals and many of its policies. Senior editor Fazil Mihlar formerly worked for the Fraser Institute, the right-wing Vancouver-based think tank that issues Report Cards for many Canadian provinces, ranking schools based on their students' performance on standardized examinations.

Also according to Wiki:
The Fraser Institute is conservative and libertarian think tank based in Canada that espouses free market principles. Its stated mandate is to advocate for freedom and competitive markets. It generally opposes public policy solutions based on government spending, taxes, deficits, and regulation. Some of the public policy stands taken by the Institute include: greater free trade throughout the world, privatization of various government services, the freedom to own and acquire firearms without controls, marijuana legalization, competition in primary schooling, and greater private sector involvement in the delivery of healthcare insurance and services. In terms of present hot topics in public policy, the Institute opposes government regulatory action as a possible solution to global warming. They argue that regulations have "the potential to impose high costs on Canadian citizens and drastically increase the regulatory state, while providing little or no environmental benefit."

Strange bedfellows, indeed...

[fivepoint]

Blue, some of that content you posted was sad indeed (especially regarding the lobbying, etc.), but other segments left me wondering what exactly the problem is. It seems like the author is interested in promoting a personal social agenda as opposed to finding valid qualms with a company active in the global free maket. I found the implication that Wal-Mart has a responsibility to provide a health plan for its employees, release compensation data, and trade secrets to be particularly confusing. It seems as if the author is attempting to redefine what companies are and are not required to do under law.


Despite numerous tweaks to their health plan, Wal-Mart simply cannot offer an affordable plan to cover its workers. Lagging behind industry averages, Wal-Mart's employees are subjected to unnecessary charges and fees; wait longer for coverage eligibility, and are forced to seek out public health programs to fulfill their health care needs. The Susan Chambers' memo, release in October 2005 by Wal-Mart Watch, reveals how Wal-Mart executives value saving a buck over the health of their workers. With around 50% of associates choosing to participate in their plans, the Wal-Mart health plan is simply not working.

Is Wal-Mart required to offer their workers an "affordable health plan?" Do most U.S. employers offer their workers health plans? NO. Health care plans are a perk which various employers offer with the hopes of increasing the intrinsic value people place on them as an employer. They're designed to increase HRs options for hiring and improve the companies PR image. Employees do not have a "right" to employer subsidized health plans, but they are welcome to compare/contrast employers based on all available means and apply for jobs based on requirements they set.



Refuses to Release Median Wage. To defend its treatment of workers, Wal-Mart releases statistics on its average hourly wage for full-time employees. The store has never, however, published its median wage -- a data point that would give a clearer sense of what workers earn. Instead, the store uses misleading language that masks the fact that managers earn higher wages than floor workers -- a fact that skews the "average" wage of 'store associates' -- and refuses to release wage levels for specific job functions. [Walmartfacts.com]

Is Wal-Mart required to release their median wage? Do most employers report their employees median wages? NO. In addition, what's wrong with managers making higher wages than floor workers? It's called supply and demand... Wal-Mart can pay employees whatever they want above min. wage as long as their employees accept the transaction, the wage is 'fair' by definition.



Silences Suppliers About Wal-Mart Relationships. "Wal-Mart has imposed a wall of silence around its operations, its relationship with its suppliers, even around the operations of its suppliers ...The silence is backed by muscle, the threat of losing business with Wal-Mart." [Charles Fishman, The Wal-Mart Effect, 2006]

What is wrong with protecting trade secrets which by definition help Wal-Mart maintain a competitive advantage and offer products for less money? How about Apple's 'wall of silence' around its operations, R&D, suppliers, etc? Does anyone here think that Apple doesn't use the thread of losing business with Apple as a leverage against these sorts of activities?

[drichards]

Walmart are purveyors of cheap crap who don't pay their employees sufficient cost of living year to year wage garnishments, don't pay their American suppliers in a timely manner, and regularly hire illegals knowingly and purposefully and pay them about $3 an hour in the US. They pollute more than most nations, their business is a growth model which forces constant expansion with new stores, and it frequently drives off small businesses when it moves to an area.

I wish I could tell you I never shop at Walmart, but I'm a Sam's Club member now thanks to my Apple TV.

[bradl]

Honestly, it was this back in my hometown of Omaha back in 2001 that was the nail in the coffin for me:

Link (http://www.nevadalabor.com/barbwire/barb01/barb2-4-01.html)


"A U.S. District Court jury in Omaha rejected her wrongful termination claim against Wal-Mart Stores Inc. Gasper gave authorities copies of a photo showing an infant crawling in what appeared to be a pile of marijuana, with $50 and $100 bills lying around. The child had bruises on his body, court records said. Criminal action was pursued and the child was placed in foster care. Police praised Gasper's actions, but Wal-Mart's policy calls for a management team to make decisions about such photos," AP continued.

"We share the same concerns as Ms. Gasper for the safety of the child," said Todd Lewis, an attorney for Wal-Mart. "We also respect the confidentiality and privacy of our customers. That's why we typically don't turn over photos to a third party."

"If Gasper disagreed with the managers' decision, Lewis said, she could appeal to officials above her supervisor. Gasper's attorney had argued the Wal-Mart policy violated a state law that requires citizens to report suspected child abuse or neglect."

As with most things in life, there are no easy answers. In other cases, parents have had their children taken away and made wards of the state because some uptight photo processor considered pictures of naked babies as kiddy porn.


BL.

[gilkisson]

Honestly, it was this back in my hometown of Omaha back in 2001 that was the nail in the coffin for me:

Link (http://www.nevadalabor.com/barbwire/barb01/barb2-4-01.html)



BL.

Link 1 seems to be dead... goes to a parking page now....

[bobfitz14]

I live in one of those smaller towns. I have seen it first hand. Main Street was for years a ghost town alley.

didn't that happen on South Park? i never watch that show, it was like one of five that i've ever seen.

[gilkisson]

didn't that happen on South Park? i never watch that show, it was like one of five that i've ever seen.

I said small town, not weird spooky freaky town of talking poo-things and Scientologist cooks... And, I have no idea.

[Unspeaked]

Can someone who follows such things intelligently answer this question: Is Wal-Mart any better or worse than similar retailers when it comes to wages and business practices? By similar retailers, I mean Target, Best Buy, Home Depot, KMart, Krogers and the like, or even McDonald's.

As far as wages, I have a hard time imagining their wage structure and benefits being too different, but I honestly don't know.

[fivepoint]

didn't that happen on South Park? i never watch that show, it was like one of five that i've ever seen.

Yeah, but they found Wal-Mart's heart (somewhere in the electronics department) before it could destroy the town completely.

"Dude, check it out! "Time Cop" on DVD. Three copies for eighteen bucks!"
-Cartman

[rhett7660]

Can someone who follows such things intelligently answer this question: Is Wal-Mart any better or worse than similar retailers when it comes to wages and business practices? By similar retailers, I mean Target, Best Buy, Home Depot, KMart, Krogers and the like, or even McDonald's.

As far as wages, I have a hard time imagining their wage structure and benefits being too different, but I honestly don't know.

I have often wondered about this too? I don't see to many complaints about the health care that is not provided by McDonalds under the 40 hour mark employees? I don't see the compalints about Target or Home Depot either. I am curious also. I have worked at Target and Home Depot.

[iJon]

I have often wondered about this too? I don't see to many complaints about the health care that is not provided by McDonalds under the 40 hour mark employees? I don't see the compalints about Target or Home Depot either. I am curious also. I have worked at Target and Home Depot.

Here is a good article I found on the topic.

http://www.corpwatch.org/article.php?id=13508

Granted that's only one article, but I have read articles that claim similar points.

[leekohler]

Here is a good article I found on the topic.

http://www.corpwatch.org/article.php?id=13508

Granted that's only one article, but I have read articles that claim similar points.

I've never liked Target either.

[mkrishnan]

Honestly, it was this back in my hometown of Omaha back in 2001 that was the nail in the coffin for me

I think this is a terrible policy, but isn't the real problem, given the fact that this went before a court, that it was upheld by the court system? That this kind of policy is wrong, with which I think most of us would agree, should be reflected in the law or at least in the legal precedent. This kind of situation should not be handled purely by expecting goodwill from companies.

[iJon]

I've never liked Target either.

We have a Target but I haven't been there much. I like to buy decoration for the house there, much better sense of style but that's about it. Plus it's not a Super Target and it closes at reasonable hours unlike Wal-Mart.

To me Target and Wal-Mart are about the same. Target has had style down since day 1 which is nice. Wal-Mart is just now fixing that and their new store layouts are on par if you ask me. It will just take them a while to redo each store.

Target can be a nicer shopping experience cause of less people shopping there. Wal-Mart is so popular it can be a nightmare shopping during the day, which is why I usually do my shopping late at night.

In my eyes, when it comes to shopping for house essentials, Wal-Mart does everything Target does but better.

[leekohler]

We have a Target but I haven't been there much. I like to buy decoration for the house there, much better sense of style but that's about it. Plus it's not a Super Target and it closes at reasonable hours unlike Wal-Mart.

To me Target and Wal-Mart are about the same. Target has had style down since day 1 which is nice. Wal-Mart is just now fixing that and their new store layouts are on par if you ask me. It will just take them a while to redo each store.

Target can be a nicer shopping experience cause of less people shopping there. Wal-Mart is so popular it can be a nightmare shopping during the day, which is why I usually do my shopping late at night.

In my eyes, when it comes to shopping for house essentials, Wal-Mart does everything Target does but better.

Living in the city, I have a lot more options. I just shop our local stores. I haven't been to a big box in many, many years. The very idea is scary to me. The closest I come to that is Whole Foods.

[gilkisson]

Living in the city, I have a lot more options. I just shop our local stores. I haven't been to a big box in many, many years. The very idea is scary to me. The closest I come to that is Whole Foods.

Damn you, then. I have to drive almost 100 miles to get to a Whole Foods. I do get to shop at Piggly Wiggly, however...

(btw, the "damn you" was out of pure jealousy)...:)

[Unspeaked]

Living in the city, I have a lot more options. I just shop our local stores. I haven't been to a big box in many, many years. The very idea is scary to me. The closest I come to that is Whole Foods.

That's funny, I live in a city and feel I have way less shopping options.

The Targets and Wal-Marts around here aren't those that stand alone in the middle of nowhere off a highway but usually in enormous expanses of other shopping and dining. All chains, usually, but still a lot of options.

Living in the city, there's no end to the arty boutique crap I can find (I can bike to no fewer than three Urban Outfitters), or locally grown organic produce which - while fine for a meal here and there, would bankrupt me if I lived off of it - but try finding a broom or mop or a bag of potatoes or something more practical; I'm forced to the suburbs for those.

[leekohler]

Damn you, then. I have to drive almost 100 miles to get to a Whole Foods. I do get to shop at Piggly Wiggly, however...

(btw, the "damn you" was out of pure jealousy)...:)

The one I go to is one door over from my gym. Here's a pic. You can't really see it because of the trees though.

That's funny, I live in a city and feel I have way less shopping options.

The Targets and Wal-Marts around here aren't those that stand alone in the middle of nowhere off a highway but usually in enormous expanses of other shopping and dining. All chains, usually, but still a lot of options.

Living in the city, there's no end to the arty boutique crap I can find (I can bike to no fewer than three Urban Outfitters), or locally grown organic produce which - while fine for a meal here and there, would bankrupt me if I lived off of it - but try finding a broom or mop or a bag of potatoes or something more practical; I'm forced to the suburbs for those.

UO is arty boutique? I consider that a chain store, another of which I don't visit.

[Unspeaked]

UO is arty boutique? I consider that a chain store, another of which I don't visit.

I'm sorry, those were three independent categories I was trying to express the abundance of (they sort of ran together in my post):

1. Arty boutiques

2. College-kid chain stores like Urban Outfitters, Forever21, Kate Spade, etc

3. Organic markets the size of a postage stamp and farmer's markets on a daily basis.

I suppose I could have thrown in coffee shops, as well, since there's one on every corner. And banks - a lot of banks.

[leekohler]

I'm sorry, those were three independent categories I was trying to express the abundance of (they sort of ran together in my post):

1. Arty boutiques

2. College-kid chain stores like Urban Outfitters, Forever21, Kate Spade, etc

3. Organic markets the size of a postage stamp and farmer's markets on a daily basis.

I suppose I could have thrown in coffee shops, as well, since there's one on every corner. And banks - a lot of banks.

And yet, you don't have a Mom and Pop where you can get brooms, mops, cleaning supplies and such? There's one right around the corner from my apartment, next to the corner pub. They're everywhere here.

[fivepoint]

Blue, some of that content you posted was sad indeed (especially regarding the lobbying, etc.), but other segments left me wondering what exactly the problem is. It seems like the author is interested in promoting a personal social agenda as opposed to finding valid qualms with a company active in the global free maket. I found the implication that Wal-Mart has a responsibility to provide a health plan for its employees, release compensation data, and trade secrets to be particularly confusing. It seems as if the author is attempting to redefine what companies are and are not required to do under law.

Anyone?

[P-Worm]

Anyone?

There's no easy answer to it, but if you watch this free video of Walmart - The High Cost of Low Prices (http://video.google.com/videoplay?docid=-3836296181471292925&ei=bP9GSerPF4b-qAORjaCHDw&q=walmart+high+cost+of+low+prices&hl=en) it will point out a lot of the flaws in the system. Something definitely needs to be done, but I can't see a clear way to fix things. As long as people want stuff at low prices sacrifices have to be made. I personally think that the key is to make sure that everyone in the business gets a fair cut of the profits without most of it going to executives and shareholders. People make millions off places like Walmart, but most of the money goes to those that don't need it.

P-Worm

edit: One thing that can be done is to raise minimum wage. The minimum wage here in Utah is $6.55 with it bumping to $7.25 on the 24th of July. In my opinion, minimum wage should be at least $10/hour.

[Unspeaked]

And yet, you don't have a Mom and Pop where you can get brooms, mops, cleaning supplies and such? There's one right around the corner from my apartment, next to the corner pub. They're everywhere here.

Sadly, no.

I have a hard enough time finding a chain convenience store (RiteAid, Walgreen's) that will occasionally stock those sorts of items, much less a Mom and Pop shop.

I can't really think of any independently owned shops near me other than ones that sell either food or clothing.

This wasn't the case, say, 10 years ago. (I don't know how much Wal-Mart and Target may have contributed to that).

[leekohler]

Sadly, no.

I have a hard enough time finding a chain convenience store (RiteAid, Walgreen's) that will occasionally stock those sorts of items, much less a Mom and Pop shop.

I can't really think of any independently owned shops near me other than ones that sell either food or clothing.

This wasn't the case, say, 10 years ago. (I don't know how much Wal-Mart and Target may have contributed to that).

Wow. Where do you live? I'll make sure to stay away. :)