JUST SAYIN’-I am a person who wears many hats, so last Friday—Black Friday—I was an active part of a nationwide demonstration against WalMart and its policies—policies that not only negatively impact its employees but, logically, inescapably, and concurrently create a destructive effect on the communities in which the workers live.
Let me re-introduce you to WalMart before I offer more details about the protests. Sam Walton, the founder, years ago was quoted as saying, “I pay low wages. I can take advantage of that. We’re going to be successful, but the basis is a very low-wage, low-benefit model of employment.” Wow! Well, he certainly put it out there way back then.
I remember when he used to urge all of us to “Buy American” and touted his good treatment of his employees. I used to think he would be rolling over in his grave if he knew how his heirs are now running the company, but after finding that quote, I see that this appalling mind-set runs in the family. On average, if you are a WalMart employee, at least half of you are making only $8.88 an hour and can’t count on a 40-hour week schedule.
WalMart is the largest private employer in America and, as a company, earned a mere $500 billion dollars last year alone. The aggregate worth of the Walton children is about $150 billion! How can they possibly afford to live on that, let alone pay their workers a living wage?!
In the meantime, we taxpayers are expected to foot the difference between what WalMart pays its employees and what they need to sustain themselves. In at least 21 states, WalMart “has the largest number of employees on publicly funded health insurance than any other company.” It thus costs taxpayers—you and me—about $1 billion per year in subsidized benefits but somehow the company can rationalize that its CEO deserves his compensation package—one of the highest for big-business executives in the country.
Furthermore, because WalMart is finding itself facing quite a conundrum due to competition from such on-line companies as Amazon.com, it is involved in an interesting buy-back scheme in order tomaintain the appearance for present and future shareholders of a vibrant company. Apparently, it has engaged in a $15 billion share buy-back to help offset sales siphoned off by on-line companies which are competing for WalMart customers. It makes its bottom line look good when maybe it is a bit shaky.
Interestingly enough, although WalMart is adamant about not allowing its American employees to become unionized, it has permitted its South African workers to do so. It seems that this company has no problem working with already-unionized workers abroad (in such countries as Japan, Brazil, Mexico, Argentina, Germany, and China) as long as the partnerships there suit its needs. Walmart is “willing to conform to the social and political context of a country if it’s been made clear that it’s the precondition for doing business there.”
In fact, WalMart depends on the Chinese for manufacturing many of its goods ($9 billion in direct purchases which keeps prices back home low in order to attract and keep customers--a process which not only keeps WalMart’s American wages low but Chinese laborer earnings low as well).
On the other hand, Jeff Long of Costco follows a different, but even more successful business model that is twice as efficient as Walmart’s. Contrary to what Sam Walton once said, Long has noted, “We know good wages are good business.” He adds that if Costco provides a respectable minimum wage (starting in his company at about $12.08 an hour and averaging nationwide about $20 an hour—far more than the livable wage needed to sustain a healthy standard of living), then turnover is kept at a minimum (WalMart averages 24% per year). Long also states that well-paid workers are reliable and dependable workers and such workers “maximize productivity and commitment, product value, customer service, and company reputation.”
So what transpired on Black Friday this year? At more than 1600 WalMart stores across the nation, hundreds of people showed up at each site to demonstrate their anguish over conditions at this store chain (many of which have been located to push out the mom-and-pop stores that have been so much a part of the American fabric). Among the largest rallies were the ones in Washington, D. C., Chicago, Long Beach, and in other locations such as Washington state, New Jersey, and Texas.
For WalMart, the Black Friday weekend brought in about $9 billion. For employees who were forced to work instead of being given the time to spend with family and friends, they reaped few immediate rewards—except the knowledge that the struggle, the fight, la huelga, la lucha would continue until victory is achieved.
What are the issues? Workers are being forced to survive on food stamps and other government assistance because they simply do not get paid enough at WalMart (even for a 40-hour week, something which many employees are not fortunate enough to find in their irregular schedules)—thus, they need to get paid enough not to have to depend on outside assistance. There are demands to eliminate retaliation when employees bring up a grievance—no matter how legitimate it is. Workers want to be unionized for their own protection (you might ask, Why accept it abroad but not here?!). Another ask is to eliminate wage theft for which WalMart has been found guilty over and over (forcing employees to work off the clock, for example) and to improve health and safety conditions.
The United States government requires at least $7.25 an hour for federal workers (the President wants a minimum of $10.10 for everyone). If WalMart employees get paid the $15 an hour ask, each one could earn about $32,000 a year—an amount which would help them to achieve a reasonable standard of living. The fact is that some WalMart workers get paid only $25,000 a year and thus cannot make their rent on that—hence the subsidies to which we all contribute though our tax dollars. Some live in their cars if they own one [and often, when they do, cannot afford to repair it when it breaks down—thus forced to take two to three buses to and from work (often in dangerous neighborhoods and in the dark).
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The Waltons have the audacity to claim that their workforce (over one million in this country) is happy and contented and glad to work for them. It reminds me of the plantation mentality that promoted the image of the happy, white-teethed, broad- smiling slave of the Antebellum period.
Joining the rallies to demonstrate their support for the workers were union organizers and minimum wage advocates. While many WalMart employees participated in these rallies, many did not for fear of retaliation. Increasingly, thank goodness, the public is learning of these activities through the various news outlets, becoming more knowledgeable about what the grievances really are, and are beginning to engage in the movement.
I spoke with quite a number of customers on that Black Friday shopping day. Some were not supportive, angrily sharing that if they don’t get paid a living wage, why should they support other underpaid workers to get a raise. But there were also those who were simply astonished by the information we shared and were glad to be enlightened. Many even claimed they would shop elsewhere in the future—at least until these problems are resolved.
Later that day, I even spoke with some who worked at places like Staples and decried their business practices as being far too similar to the business plan that WalMart promotes. Although the emphasis that Friday was on WalMart, we must also keep in mind what evils are being perpetrated on other classes of worker, such as those at fast-food restaurants, hotels (LA just passed a $15 an hour wage scale), universities (how do we draw and keep the best if they are not paid what they are worth?), air ports, and retailers.
During this time of remarkable economic recovery (from a time when we were heading inexorably off the cliff), the Stock Market has tripled in value, and each month is witness to another quarter million new hires—creating the lowest number of unemployed in years. But this is also a time when “economic recovery has seemed to disproportionately benefit the wealthy, heightening concerns about income inequality.”
We need more than lip service and crocodile tears for the less fortunate. It is time to put our money where our mouths are—so to speak. Thus, I’m asking everyone, from the White House on down, not to shop at WalMart until it changes its unacceptable and deplorable methods of doing business! As you take that stand, please also consider demanding more and better of all the places you patronize!
Just sayin’.
(Rosemary Jenkins is a Democratic activist and chair of the Northeast Valley Green Alliance. Jenkins has written A Quick-and=Easy Reference to Correct Grammar and Composition, Leticia in Her Wedding Dress and Other Poems, and Vignettes for Understanding Literary and Related Concepts. She also writes for CityWatch. This piece is part of an ongoing CityWatch series … Who Are The Real Angelinos … exploring the myriad peoples and cultures that define Los Angeles.)
-cw
CityWatch
Vol 12 Issue 98
Pub: Dec 5, 2014