Wednesday, December 6, 2006

-- Wal-Mart; Not a Friend of Progressives

I just finished watching a very good documentary on Wal-Mart titled, Wal-Mart: The High Cost of Low Price. It's from 2005 and most of the data is from 2004, but I haven't seen anything in the news that would lead me to believe that anything at Wal-Mart's corporate culture has changed.

The documentary has created a website that houses much of the information from the video, which can be viewed here http://www.walmartmovie.com/. According to the site, the taxpayers wind up paying much for Wal-Mart's employees:

In 2004, a study released the UC Berkeley Labor Center (sic) found that "reliance by Wal-Mart workers on public assistance programs in California comes at a cost to taxpayers of an estimated $86 million annually; this is comprised of $32 million in health related expenses and $54 million in other assistance."

Why are Wal-Mart workers signing up for public assistance? Simply put, the wages that Wal-Mart pays to its employees are too low, and the cost of premiums for insurance that it offers is too high.

In 2001, sales associates, the most common job in Wal-Mart, earned on average $8.23 an hour for annual wages of $13,861. The 2001 poverty line for a family of three was $14,630. [“Is Wal-Mart Too Powerful?”, Business Week, 10/6/03, US Dept of Health and Human Services 2001 Poverty Guidelines, 2001]

A 2003 wage analysis reported that cashiers, the second most common job, earn approximately $7.92 per hour and work 29 hours a week. This brings in annual wages of only $11,948. [“Statistical Analysis of Gender Patterns in Wal-Mart’s Workforce”, Dr. Richard Drogin 2003]

Since the average full-time Wal-Mart employee earned $17,114 in 2005, he or she would have to spend between 7 and 25 percent of his or her income just to cover the premiums and medical deductibles, if electing for single coverage. [Wal-Mart 2006 Associate Guide and UFCW analysis]

The average full-time employee electing for family coverage would have to spend between 22 and 40 percent of his or her income just to cover the premiums and medical deductibles. These costs do not include other health-related expenses such as medical co-pays, prescription coverage, emergency room deductibles, and ambulance deductibles. [Wal-Mart 2006 Associate Guide and UFCW Analysis].

Wal-Mart trumps the affordability of its new health care plan. According to Wal-Mart, “In January [2006], …Coverage will be available for as little as $22 per month for individuals” [www.walmartfacts.com]

What Wal-Mart’s website leaves out: Coverage is affordable, but using it will bankrupt many employees. Wal-Mart’s most affordable plan for 2006 includes a $1,000 deductible for single coverage and a $3,000 deductible for family coverage ($1,000 deductible per person covered up to $3,000). [Wal-Mart 2006 Associate Guide]
So, Wal-Mart pays too little and charges too much, resulting in huge profits. And what does it do with those profits? One of the things it does is support Republican candidates. According to Open Secrets, a website that tracks political contributions, during the 2006 cycle Wal-Mart's PAC donated $944,350 to political campaigns. Of that, $641,000 went to Republicans ($556,500 for House races, $84,500 for Senate) while only $303,350 went to Democrats ($275,800 for House and $27,550 for Senate). 68% of the political contributions from Wal-Mart's PAC went to Republican candidates, while only 32% went to Democrats.

What can be done? First, letters need to be sent to Wal-Mart's corporate headquarters demanding more equitable distribution of campaign funds, as well as higher wages and better healthcare for its employees. Their mailing address is:

Wal-Mart Stores, Inc.
702 SW 8th St.
Bentonville, AR 72716

Second, until policies change, stop shopping at Wal-Mart and encourage your friends, family and associates to do likewise. This can be done by sending out an email, or by simply sending a copy of the letter you send to Wal-Mart to your local paper's editor for publication. Boycotts work, but only if they are followed by a large number of people. As Wal-Mart's profits shrink, they will be forced to change their policies.

Lastly, divest your investments of any Wal-Mart stock. It doesn't help any progressive causes to continue investing in a company that is against us. With any and all of these moves, it is imperative that Wal-Mart's corporate office understand what you're doing and why, which is why sending them a letter is a must.

Corporations can and do change, but only if they can see that such change is for their benefit. Working together, we can make that change.

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