Wal-Mart’s newest big lie: Another misleading ad campaign from a job-killing behemoth

[Mr. Big Dog 10,747]

The two people on the left are getting paid less because they're black.

Naturally.

[luckytxn 2,265]

And this is just the stores. The distribution centers are highly sought after jobs. Costco would never hire most of what Wal Mart would.

http://www.forbes.com/sites/realspin/2013/11/27/why-do-1-4-million-americans-work-at-walmart-with-many-more-trying-to/

Wal Mart can handle that wage increase...but.

Now that mom and pop business is gone.

*poof*

Thanks Obama!

Edited March 14, 2014 by luckytxn

[Mr. Big Dog 10,747]

Walmart’s big lie: No, it doesn’t create jobs!

First, let’s look at the impact of Walmart on local labor markets. The largest, most rigorous study conducted on the subject is this peer-reviewed article from 2008. Its lead author is economist David Neumark, who is no wild-eyed liberal. (See, for example, this anti-minimum wage op-ed he wrote for the Wall Street Journal).

Earlier studies did not adequately deal with selection bias: i.e., the problem that when and where Walmart chooses to open new stores is not random, but tends to be correlated with other variables. Those confounding variables make it difficult to determine whether local employment outcomes are causally related to Walmart‘s entry, or to something else. I’ll skip the technical details, but suffice it to say Neumark and his co-authors devised a sophisticated methodology that accounts for the selection bias. Using data from over 3,000 counties, their results show that when a Walmart store opens, it kills an average 150 retail jobs at the county level, with each Walmart worker replacing about 1.4 retail workers. These results are robust under a variety of models and tests.

Other strong studies found similar results. A 2008 peer-reviewed study that looked at Maryland concluded that Walmart’s presence significantly decreased retail employment, by up to 414 jobs. And a 2009 study by Loyola University found that the opening of a Chicago Walmart store was “a wash,” destroying as many jobs as it created: “There is no evidence that Wal-Mart sparked any significant net growth in economic activity or employment in the area,” according to the report. In short, when Walmart comes to town, it doesn’t “create” anything. All it does is put mom-and-pop stores out of business.

But the local studies tell only part of the story. To get a full picture of Walmart’s disemployment effect, you need to look at the whole economy, not just local labor markets. Walmart is a vast and enormously powerful organization: it’s the biggest company in the country (in terms of revenue), as well as the largest private employer not only in America, but in the world. As such, it has the power to make and break labor markets.

Many writers and researchers have looked closely into Walmart’s effect on its suppliers. Here’s what they found: in its cutthroat drive for lower prices, Walmart squeezes suppliers to deliver goods at the lowest possible cost. Suppliers who resist Walmart’s relentless pressure to cut labor costs to the bone risk having their contracts canceled. Walmart’s demands have driven some suppliers, such as Vlasic, into bankruptcy. It’s forced others, like Rubbermaid, to ship American manufacturing jobs to China and other low-wage countries. Academic studies like this one have documented Walmart’s impact on employment outside the retail sector.

WalMart represents the race to the bottom, all that's wrong with it and the destruction of middle class America. It is absolutely nothing to be celebrated.

[spookyturtle 9,466]

Yea, the middle class disappeared because of Walmart. It couldn't have anything to do with decades of brilliant government, could it?

[Mr. Big Dog 10,747]

Yea, the middle class disappeared because of Walmart. It couldn't have anything to do with decades of brilliant government, could it?

Walmart did not make the middle class disappear all by itself. But it sure helped that process along. Government policies paved the way for the race to the bottom - starting in the 1980's.

[spookyturtle 9,466]

Walmart did not make the middle class disappear all by itself. But it sure helped that process along. Government policies paved the way for the race to the bottom - starting in the 1980's.

Five years of Obama and 8 years of Bush is like trying to swim with an aircraft carrier anchor chained to each leg.

[one...two...tree 2,762]

Even Bill Clinton embraced the idea of a global economy where eventually, "all boats are lifted." He envisioned that signing more free trade agreements would improve the quality of life in developing countries while providing the U.S. with a steady supply of cheap goods, but after a few decades to analyze the results, we can see that the only real winners were the big companies who experienced record profits while most of the manual labor force experienced depressed wages. However, no other company did more to speed up the race to the bottom than the world's largest retailer. I see the only viable solution is for Walmart employees to exercise the constitutional right and organize. Give them real bargaining power. This notion that bargaining power can be achieved simply by choosing a different employer ignores the changed landscape of towns across America. Drive to any rural town in America nowadays and count how many different retail stores they have. And yes, while you might find a Home Depot alongside a Walmart, they aren't direct competitors, but they do fight together to keep wages low and prevent their employees from organizing.

I really don't understand this anti-union sentiment by so many blue-collar type Americans. The rhetoric over why they don't like them amounts to regurgitated, right wing talking points that have no basis in reality. Unions helped build the once great Middle Class and helped keep our economy prosperous. When more Americans can afford to spend money, they in turn help drive the economy. It's really simple economics.

Edited March 14, 2014 by Porterhouse

[spookyturtle 9,466]

Even Bill Clinton embraced the idea of a global economy where eventually, "all boats are lifted." He envisioned that signing more free trade agreements would improve the quality of life in developing countries while providing the U.S. with a steady supply of cheap goods, but after a few decades to analyze the results, we can see that the only real winners were the big companies who experienced record profits while most of the manual labor force experienced depressed wages. However, no other company did more to speed up the race to the bottom than the world's largest retailer. I see the only viable solution is for Walmart employees to exercise the constitutional right and organize. Give them real bargaining power. This notion that bargaining power can be achieved simply by choosing a different employer ignores the changed landscape of towns across America. Drive to any rural town in America nowadays and count how many different retail stores they have. And yes, while you might find a Home Depot alongside a Walmart, they aren't direct competitors, but they do fight together to keep wages low and prevent their employees from organizing.

I really don't understand this anti-union sentiment by so many blue-collar type Americans. The rhetoric over why they don't like them amounts to regurgitated, right wing talking points that have no basis in reality. Unions helped build the once great Middle Class and helped keep our economy prosperous. When more Americans can afford to spend money, they in turn help drive the economy. It's really simple economics.

So it's simple, the Walmart employees can vote to become unionized and reap the rewards. Why don't they do that? And why does everyone that doesn't work there complain about the wages and the ones that do work there don't vote to let the union in? It's kinda like the US invading Iraq to free the people. Except they didn't want to be free.

[Póg mo 1,749]

So it's simple, the Walmart employees can vote to become unionized and reap the rewards. Why don't they do that? And why does everyone that doesn't work there complain about the wages and the ones that do work there don't vote to let the union in? It's kinda like the US invading Iraq to free the people. Except they didn't want to be free.

Well if you paid enough attention, you'd know that when walmart employees ever attempt to set up a union, the company immediately reacts by shutting the store. Also the laws have been written to make meaningful protests impossible.

[spookyturtle 9,466]

Well if you paid enough attention, you'd know that when walmart employees ever attempt to set up a union, the company immediately reacts by shutting the store. Also the laws have been written to make meaningful protests impossible.

That happened once, about 8 years ago. And the labor laws make it easier for Walmart to the union out. But the problem is Walmart, not the government that made the laws. Priceless.

[one...two...tree 2,762]

So it's simple, the Walmart employees can vote to become unionized and reap the rewards. Why don't they do that? And why does everyone that doesn't work there complain about the wages and the ones that do work there don't vote to let the union in? It's kinda like the US invading Iraq to free the people. Except they didn't want to be free.

I said the economics of higher wages translating to more spending would strengthen our economy is simple. Successfully getting laborers to organize in today's political climate, along with the political clout of these corporations, makes it difficult.

Here's a brief history of labor disputes with Walmart:

1970

● The Retail Clerks International Union attempts to organize Wal-Mart Stores employees at two outlets in Missouri. Sam Walton hires lawyer John Tate, who has called unions “blood-sucking parasites,” to stop the drives.

1978

● The International Brotherhood of Teamsters tries to unionize a Walmart distribution center in Searcy, Ark. The company stalls a vote for four years while Walton meets frequently with workers. The Teamsters lose 215 to 67.

1992

● In his autobiography, Sam Walton: Made in America, Walton summed up the company’s position on unions: “I have always believed strongly that we don’t need unions at Wal-Mart. Theoretically I understand the argument that unions try to make, that the associates need someone to represent them and so on. But historically, as unions have developed in this country, they have mostly just been divisive.”

1999

● The United Food and Commercial Workers International Union (UFCW) “blitzes” 300 Walmart supercenters, sending representatives to meat departments to distribute leaflets. Walmart gets a restraining order against the union, which is later reversed by the Arkansas Supreme Court.

2000

● Butchers in a Jacksonville (Tex.) Walmart vote to join UFCW Local 540, spurring union votes at other stores. Two weeks later, Walmart closes its 180 meat counters and switches to prepackaged cuts only, saying it will offer meat cutters other jobs in its stores. “Our decision to expand case-ready meat has nothing to do with what went on in Jacksonville,” Jessica Moser, a company spokeswoman, tells the Associated Press.

2001

● A class action filed in San Francisco, Wal-Mart Stores v. Dukes, alleges widespread gender discrimination by Walmart management. Lead plaintiff Betty Dukes claims she was selectively punished and passed over for promotion during her seven years at a California store. It would take 10 years for a decision.

2003

● In a sweep called “Operation Rollback,” federal agents from the Bureau of Immigration and Customs Enforcement arrest 250 suspected illegal immigrants from contract cleaning crews at 61 Walmart stores in 21 states and execute a search warrant at the company’s headquarters. Walmart later agrees to pay the government $11 million and improve its oversight of contractors.

2004

● Workers at a Jonquiére (Que.) Walmart vote to join the UFCW, becoming the first unionized store in North America. Walmart closes the store the following year. “You can’t take a store that is a struggling store anyway and add a bunch of people and a bunch of work rules,” Walmart Chief Executive H. Lee Scott Jr. tells the Washington Post.

● Joshua Noble, a 21-year-old employee at the Walmart Tire & Lube Express in Loveland, Colo., convinces the tire shop’s workers to hold a vote to join the UFCW. Walmart flies in a team of labor specialists from Bentonville and transfers six new employees to the shop. Three months later, Noble is the only yes vote in a 17-1 rejection of the union.

● Walmart alters a 15-year-plus policy allowing managers to lock overnight employees inside some stores. The new rule requires managers with keys to be present in order to let workers out in case of emergency.

2005

● A California jury orders Walmart to pay $172 million in damages to 116,000 workers for failing to provide meal breaks. Walmart appeals and later agrees to pay between $77 million and $152 million.

2006

● A Pennsylvania jury orders Walmart to pay $78 million in damages to 187,000 workers for failing to pay for off-the-clock work. On appeal, a judge raises the award to $188 million, which is upheld.

2008

● Walmart agrees to pay $54 million to settle a Minnesota class action over off-the-clock work.

● Two weeks after the Minnesota settlement, Walmart agrees to pay as much as $640 million to settle 63 class actions over unpaid work.

2009

● Walmart agrees to pay $40 million to settle a Massachusetts class action by 87,000 employees for off-the-clock work and shortened breaks.

2010

● Walmart agrees to pay as much as $86 million to settle a California class action over failing to pay vacation and overtime wages to 232,000 workers. Walmart did not concede that the wages remained unpaid, according to Reuters.

2011

● Seeking government approval to buy South African chain Massmart, Walmart promises to honor existing union contracts. (Walmart also negotiates with unions in Argentina, Brazil, Chile, Mexico, and China.) The South Africa Commercial, Catering and Allied Workers Union and other labor groups send a letter asking the company to end its long-running battle with U.S. labor.

● Wal-Mart Stores v. Dukes reaches the Supreme Court, and justices rule 5-4 that Walmart can’t be sued for discrimination by all of its female employees. Justice Antonin Scalia writes for the majority that the plaintiffs had provided “no convincing proof of a companywide discriminatory pay and promotion policy.”

Data: Wal-Mart: The Bully of Bentonville by Anthony Bianco; ABC News; Sam Walton: Made in America by Sam Walton with John Huey; Bloomberg News; In Sam We Trust: The Untold Story of Sam Walton and How Wal-Mart Is Devouring the World by Bob Ortega; Daily News Record; New York Times; courts.arkansas.gov; Associated Press; supremecourt.gov; CNN; Toronto Star; Washington Post; Los Angeles Times; smartvoter.org; Adweek; Morningstar Advisor; Reuters

[Póg mo 1,749]

That happened once, about 8 years ago. And the labor laws make it easier for Walmart to the union out. But the problem is Walmart, not the government that made the laws. Priceless.

You are attempting to put words in my mouth, I never said that our government was blameless, in fact I have argued on this forum many times that we need to demand that our government work for the American people and just mainly for corporations.

[spookyturtle 9,466]

You are attempting to put words in my mouth, I never said that our government was blameless, in fact I have argued on this forum many times that we need to demand that our government work for the American people and just mainly for corporations.

You claimed that every time a Walmart store attempted to unionize, it was closed down. That happened one time. How is that putting words in your mouth? I counter with the laws allowed them to do that. The main emphasis of your point was on Walmart's fault, I believe it is much deeper than that.

[spookyturtle 9,466]

I said the economics of higher wages translating to more spending would strengthen our economy is simple. Successfully getting laborers to organize in today's political climate, along with the political clout of these corporations, makes it difficult.

Here's a brief history of labor disputes with Walmart:

I'll take your word for all of these claims. It shows Walmart has had many labor disputes. And you admit that the current laws and political climate make it just about impossible for labor to organize, but you blame Walmart for the elimination of the middle class? Do you think that the government should dictate what wages all companies should pay? Set a limit on corporate profit and anything over a certain amount be given to the employees? What about the shareholders, these are the people the company is accountable to financially? How much profit is enough? This looks like another case of treating the symptoms but ignoring the cause, just like the anti-gun logic voiced by many here. If Walmart is breaking the law, fine them and punish them.

What about online shopping killing the brick and mortar stores? I guess that hasn't hurt small business and the middle class? Online shopping accounted for over $200 billion in 2012 and is growing in leaps and bounds. Go to Best Buy, look at your TV and then buy it from Amazon. Then complain when Best Buy goes under because there is no where to look at your goods in person.

What about tax laws that favor corporations? Or the laws that lead to companies keeping their cash in overseas banks? Apple has somewhere in the vicinity of $90 billion in overseas banks because they don't want to pay the tax to bring it home. Any bets on how long it is until the government comes up with a way for the money to be brought home with minimal taxes? All legal thanks to our elected officials.

Walmart is a small part of the shrinking middle class. I say again to those that don't like the company, don't shop there. Close Walmart, Home Depot and Lowe's and see what happens to the economy and the unemployment rate. Remember the auto industry up until the early 70's? How many employees are there today vs then? How did the unions do keeping those jobs? Ask someone in Detroit. How many people here complaining about Walmart bought a Japanese car made in America by employees not making the same wages as their union counterparts? Or buy a foreign car which is made overseas and contributes to some other countries labor force at the expense of our own?

Yea, get rid of Walmart and the US will be back on top in no time.

[Teddy B 17,252]

You claimed that every time a Walmart store attempted to unionize, it was closed down. That happened one time. How is that putting words in your mouth? I counter with the laws allowed them to do that. The main emphasis of your point was on Walmart's fault, I believe it is much deeper than that.

That's the truth. The corporate greed extends to those who make our labor laws, that's where the problem lies. You can't lay all of the blame Walmart for playing by the rules they were given.