Is It Just About Wal-Mart? Yes and No.

More comments about Wal-Mart and a possible employment future from Ezra Klein (thanks again Jonathan).

Again, this isn't about Wal-Mart. Rather, it's about every company that competes with them, and every producer who sells through them. In the first case, Wal-Mart is driving down worker salaries and benefits by so resolutely grinding their own associates into the dirt. So rather than watching the service economy mature into a middle class conveyor as the manufacturing industry did, it's moving in the opposite direction -- and given the decline of manufacturing and the softness of worker salaries, what choice have workers than to accept their lot? Something is better than nothing, but something remains inadequate.

So as Wal-Mart chases manufacturing jobs out of the country we have service jobs as replacement jobs. Service jobs that are being defined by Wal-Mart wages and benefits. On the other hand, maybe some people think a package of underwear for $2.93 is worth it. Read the entire article.

Wal-Mart Leads the Race to the Bottem

I don't think the word monopsony is tossed around enough for people to really understand the implications. A monopsony as defined by the Economist is below:

Monopsony
A market dominated by a single buyer. A monopsonist has the MARKET POWER to set the PRICE of whatever it is buying (from raw materials to LABOUR). Under PERFECT COMPETITION, by contrast, no individual buyer is big enough to affect the market price of anything.

Many Wal-Mart supporters claim that the supremacy of Wal-Mart is what the so-called 'free market' is all about. It's all about competition. But how can the small business person compete when they have no power to dictate price to suppliers? Explain how this is fair competition? Monopsonies eventually lead to lower wages and benefits, outsourcing of jobs and outright failure of suppliers.

Barry C. Lynn, author of "The Case for Breaking Up Wal-Mart", gives two examples to explain the effects of a monopsony:

The effects of monopsony also can be difficult to pin down. But again we have easy illustrations ready to hand, in the surprising recent tribulations of two iconic American firms -- Coca-Cola and Kraft. Coca-Cola is the quintessential seller of a product based on a "secret formula." Recently, though, Wal-Mart decided that it did not approve of the artificial sweetener Coca-Cola planned to use in a new line of diet colas. In a response that would have been unthinkable just a few years ago, Coca-Cola yielded to the will of an outside firm and designed a second product to meet Wal-Mart's decree. Kraft, meanwhile, is a producer that only four years ago was celebrated by Forbes for "leading the charge" in a "brutal industry." Yet since 2004, Kraft has announced plans to shut thirty-nine plants, to let go 13,500 workers, and to eliminate a quarter of its products. Most reports blame soaring prices of energy and raw materials, but in a truly free market Kraft could have pushed at least some of these higher costs on to the consumer. This, however, is no longer possible. Even as costs rise, Wal-Mart and other discounters continue to demand that Kraft lower its prices further. Kraft has found itself with no other choice than to swallow the costs, and hence to tear itself to pieces. (My emphasis)

Monopsonies used to be illegal. The Great Atlantic and Pacific Tea Company (A&P) was a monopsony. It used it's in-house brands to force suppliers to do the companies bidding. Back then (1930's) the Federal government took a dim view of this practice. In fact, they created the Robinson-Patman law (known as the Anti-A&P Act) which ...forbade any person or firm engaged in interstate commerce to discriminate in price to different purchasers of the same commodity when the effect would be to lessen competition... President Reagan changed all that by gutting the enforcement of anti-trust laws.

Wal-Mart Prices - Are they the lowest?

From PBS interview with John Lehman [Jon Lehman worked for Wal-Mart for 17 years, managing six stores in four different states before he left the company in 2001 to work for a union trying to organize Wal-Mart employees]

What is the opening price point? Why is it so key to Wal-Mart's strategy?

OK, it's lawn-and-garden time. Your grass is getting high. Your lawn mower is broken from last year, or you need a new lawn mower. You're going to go to Wal-Mart. So you go to Wal-Mart, and you're looking for a lawn mower, and to your delight, you walk in, and you see this $99 lawn mower. You may not want a cheap, basic lawn mower, but you see that price point on an end cap or a big display stack base, and you say, "Wow, what a great price." And it draws you in. It lures you into the department, and you form the perception immediately that "Hey, Wal-Mart's got the lowest prices in town. Look at this item right here. How could they sell it for $99?" ...

But as you walk into the department and look for that $269 power-drive lawn mower that you really are after, they're not losing money on that item. And it may not be the lowest price in town. Wal-Mart used to advertise "Always the low price." They don't do that anymore.

So are you saying that the opening price is the lowest price and actually will beat the competition, but maybe other items in the same category aren't necessarily the lowest price?

Oh, absolutely not. It's just like fishing: You want to entice that fish to that lure. ... Once you walk past that opening price point, they've got you, because you've already formed the perception that everything in that department is the lowest price in town.

And maybe it's not.

No, it's not. No, I can tell you it's not. I can tell you from experience it's not. ...

"Fault Lines" in Saranac Lake

Todays editorial in the Adirondack Daily Enterprise finally defines a problem that we have all been aware of, but have ignored, for decades. It's a problem that has been ignored for good reason. It's a political problem and may actually be unsolvable. Many of us realize that the Village of Saranac Lake is divided between two counties (Franklin and Essex) and three townships (Harrietstown, St. Armand and North Elba). But get this:

Worse still, the village is split between two U.S. congressional districts (McHuge and Sweeney), two state Assembly districts, two state Department of Transportation regions and two Blue Cross/Blue Shield health insurance companies.

The village of Saranac Lake is split so many ways it's not surprising consensus on many issues is hard to come by. Here is one obvious solution posed by the ADE:

Get Essex County and the towns of North Elba and St. Armand to pull back out of the village.

What are the chances of this happening? Who knows, but the ADE suggests:

Essex County, North Elba and St. Armand may not like losing all that sales and property tax revenue, but they could be convinced since, from a regional standpoint, redrawing the lines makes so much more sense than the current system. Plus, maybe they could get something in return. In the meantime, they’re really dealing Saranac Lake an injustice with its lack of Essex County representation and services. Getting them to pull out will take some wheeling and dealing, and perhaps some kicking and screaming, but it can be done.

Kicking and screaming, no doubt. What could they possibly get in return? Whether you are anti-Wal-Mart, pro-Wal-Mart or somewhere in between, it is definitely time to redraw the "Fault Lines".

Shopping at Wal-Mart - Is it good for our country?

Thanks to Jonathan at Writing on the Wal for putting me on to these comments by Ezra Kline.

What's worrisome about Wal-Mart is that, like GM and Ford once did, they are setting the norms for the coming (or current?) economy. One in every five retail sales is done at their cash registers; they're larger than the next five retailers combined. Indeed, for major producers, Wal-Mart is just about the only market that matters, which allows them to dictate the production methods, employee relations, and business strategies all the way up the food chain. In action and effect, Wal-Mart is an active monopsony -- a seller able to dictate the price to its producers. They've forced Coke to change their secret recipe, Kraft to lay off thousands of employees, and Vlasic to declare bankruptcy. And because Wal-Mart so obsessively pursues the lowest possible prices, they're not only depriving their own workers of generous benefits and compensation, they're making it literally impossible for their producers to do so, as Wal-Mart won't abide by the minor cost differences that on-shore production and respectable benefits demand.

Unfortunately, kinda like the Iraq War, the attitude seems to be "let the other guy worry about it."

A Memorable Line by Mark Morford

From an article in the San Francisco Chronicle last May.

Take Wal-Mart, the most famously offensive, town-destroying, junk-purveying, labor-abusing, sweatshop-supporting, American-job-killing, soul-numbing, hope-curdling retailer in the known universe, moving upward of $300 billion in cheap mass-produced slurm every year via more than 5,000 landscape-mauling eyesore stores stretching all the way from Texas to China and Argentina and South Korea and Mexico and your backyard.

And Another Thing.....Or Two

Wal-Mart is or is not interested in Saranc Lake? Why does Edelman PR continue to visit this website almost everyday if Wal-Mart is no longer interested in SL?

Any truth to the rumor that Wal-Mart has an option on land outside of SL?

CARD is being awfully quiet lately.

Paul Sands - Idiot in Charge of WPTZ

Here is what Paul has to say about Saranac Lake and Wal-Mart:

They'll huff and they'll puff, and they'll blow your house down.

They're the big, bad NIMBYS...the folks who always yell "Not in My Back Yard." And they've just blown Wal-Mart out of Saranac Lake.

They seem to think Wal-Mart's the big bad wolf.....but the truth is the NIMBYs are worse.


They destroy progress, they hurt the economy, they cost jobs, and they make it impossible for communities to grow.

Wal-Mart wanted to build in Saranac Lake. The company simply got tired of all the conditions, all the whining, and all the opposition from a small group of loud and short-sighted objectionists.

The giant retailer finally said "enough is enough," and walked away.

We don't blame Wal-Mart. But we are sorry to see Saranac Lake lose this opportunity. The Tri-Lakes region needs decent, affordable shopping. It needs jobs. It needs business development.

But, of course, the NIMBYs don't want any of that.

They'd rather blow it.

That's our opinion. What's yours?

Well Paul, allow me to respond:

1. It wasn't a small group that opposed Wal-Mart. Maybe your news team didn't cover the recent village elections. The guys that wanted Wal-Mart got soundly defeated.

2. So you think Wal-Mart is progress? Actually, I thought Upstate Biologicals was progress, but that's just me. I guess you think so little of small communities like Saranac Lake, that we just have to settle for Wal-Mart jobs.

3. Having a Wal-Mart is your standard for community growth? That is about the most stupid thing I have ever heard.

4. Please tell us more about Wal-Mart and their great jobs Paul. Tell us how they have created jobs, good jobs. Did you get that from Walmartfacts.com?

Go here to tell Paul your opinion I've already sent mine (I know it will be hard, but be nice).

Flash - Wal-Mart Has First Communist Party Branch

A staffer in the communications department of a Wal-Mart in Shenyang confirms that Wal-Mart has a Communist Youth League Branch at its Shenyang outlet.

It wasn't immediately clear whether the party branch had an office in the store.

Is Wal-Mart leading an effort to merge capitalism and communism into some new super-vile economic model? Imagine what the worst parts of capitalism and communism would look like. Or maybe Wal-Mart will teach the Chinese the Wal-Mart economic model. Question is, who will the Chinese exploit? Another question, if we get a Wal-Mart in Saranac Lake, will we have to start calling each other comrade?

Short article here at at the NYT, "Wal-Mart Opens Communist Branch in China". It's short because the only group more secretive than Wal-Mart is the Chinese communist government.

More (I really like the headlines)

Wal-Mart welcomes Chinese communists No. 1 retailer allows Communist Party to set up branch in China store.

Communists join Wal-Mart's ranks Retail giant Wal-Mart, regarded by many as an icon of global capitalism, has become host to a branch of the Chinese Communist Party, according to reports.

Community Store & Adirondack Daily Enterprise

An editorial in todays ADE is titled "Community Store May Well Succeed". Last week, in one of the preachy editorials attempting to describe what is wrong with Saranac Lake, the ADE wrote:

“If a 121,000-square-foot store was too big for you, is a 5,000-square-foot, community-owned, politically aligned store going to make up for the loss of the 40,000-square-foot Ames? Maybe for some, but not for most.”

It seems the ADE doesn't really know the committee that is organizing the Community Store because Ms. Gail Brill showed up to challenge the ADE editorial.

Later in the editorial the ADE writes:

Ms. Brill is a fighter, and we were impressed with how she stuck up for her cause when faced with our skepticism. She passionately wants to improve Saranac Lake’s shopping options — she’s also challenged Grand Union to improve its supermarkets — but she also wants to stick to what she says makes this village different.

The ADE editorial board then goes on to congratulate itself on coming up with the idea of a community store in 2004.

Many people have already said they’ll buy shares at $500 each, and we think this thing may very well succeed.

We hope it does; we’ve been promoting the idea in editorials since before there was a local effort. We urged people to consider Powell, Wyoming’s model in October 2004, and we reiterated it this June, just before an organizational meeting that drew more than 200 people

The ADE may have promoted the idea, but Ms. Brill is the inspirational leader who is helping to make it happen. Bravo for Ms. Gail Brill. SL could use more 'transplants' like her.

There is also an article in todays ADE concerning last evenings Community Store informational meeting. The Community Store committee consists of Ms. Gail Brill, Ms. Melinda Little, Ms. Gay Relyea and Ms. Wendy Foley.

I suggest we have 4 Winter Carnival Queens next February.

Wal-Mart Still Interested in Saranac Lake

Wal-Mart just cannot make up it's mind. Now, according to an article in todays ADE, Wal-Mart still wants to locate in SL.

On Tuesday, Wal-Mart spokesman Philip Serghini reiterated that the retailer has nothing planned for Tupper Lake, as some have suggested, and nothing on the table in Saranac Lake.

“I never heard any kind of proposals going (to Tupper Lake),” Serghini said. “We’re definitely interested in Saranac Lake. We just don’t have any potential properties right now.”

But if Wal-Mart does have interest in another property, it may not be until late in the process that the public knows, if it follows the same pattern as with the recent proposal in Saranac Lake.

Wal-Mart as an Employer

I came across this article by Selena Maranjian at the Motley Fool's Fool.com website. Marajian, like most investors, really admires Wal-Mart as an investment. The article was written in 2003 but it raises some important questions concerning Wal-Mart's treatment of it's employees. Here is her question.

But even if companies abide by the law, is there a point at which their actions are, simply, bad? By bad, I mean bad for society, bad for employees, unfair in the vague but grand scheme of things, and maybe even bad for business?

She goes on to point out that treating employees may not be the best thing for a company. You end up with:

Grouchy, resentful employees at best, and perhaps poor performance and even sabotage, at worst. From a company's point of view, unionization is probably the worst-case scenario here.

Negative media coverage, leading to a less lustrous reputation, an increase in customers' desire to shop elsewhere, and possibly even boycotts.

Society and government are drained, picking up the company's slack. If employees are uninsured or underinsured, then they put pressure on the health-care system. If they're having trouble making ends meet and living near or below the poverty line, they'll require more government services.

Many of us realize that those things are all currently happening due to Wal-Mart's poor treatment of its employees. She goes on to ask whether shareholders or employees should come first. Her answer is that both should be treated well and what's good for the employees will probably be good for the shareholders.

Right now, many communities fight to keep Wal-Marts away. Perhaps if the company were even more admired in America, if it were known not only for low prices and shareholder rewards but also for employing an enormous number of people and compensating them with somewhat generous pay and benefits, more communities would welcome it with open arms. Perhaps those better-paid employees would have more discretionary income to spend in their communities, boosting other businesses. Happy employees will take more genuine pride in their employer, and customers will see that. Satisfied employees generally don't need unions. They'll be less likely to sue, too, perhaps reducing the company's legal expenses.

She ends the article by saying:

I think that maybe Wal-Mart and even its shareholders could benefit if the company shares a little more of its wealth with employees.

Working Families for Wal-Mart - An Email

I am a paid-in-full member of Working Families for Wal-Mart. Today I got an email from them:

Dear friend,

As you may have heard, Ambassador Andrew Young resigned recently as Chairman of our national steering committee.

I am writing to let you know that Working Families for Wal-Mart continues to move forward.

As Ambassador Young said on Thursday, “I urge [our leaders and members] to continue to speak out and stay active. The good that Wal-Mart does for America's working families is worth fighting for.”

We’re committed to continuing that fight. We’re going to keep talking about how Wal-Mart makes a positive difference for working families. And we’re going to continue to stand up for Wal-Mart in the face of daily attacks from union-funded critics.

As my friend and fellow steering committee member, Courtney Lynch, said on Friday, “Our organization consists of over 140,000 members across the country. We have several local advisory boards made up of community leaders and activists committed to our cause. We all believe that Wal-Mart makes significant contributions to America’s working families. Our organization will continue to grow and make a difference in this national debate.”

Our aggressive efforts will continue next week as we launch a national opportunity for Working Families for Wal-Mart members like you and other Americans who support Wal-Mart to make their voices heard.

Working Families for Wal-Mart is only as effective as its members. And as a valued member, you can have an impact by speaking out and by talking to your friends, family and neighbors about how Wal-Mart makes a difference for working families.

Thanks in advance for your continued support.

Sincerely,

Catherine Smith
National Steering Committee Member

I can't wait to hear about their national opportunity for Working Families for Wal-Mart members like you and other Americans who support Wal-Mart to make their voices heard.

I wonder if they will allow the voices of those people who don't support Wal-Mart to be heard?

Community Store Bashing on TOTT

You really have to wonder about people. Sure there are a lot of people that are upset that Wal-Mart appears to have given up on locating in Saranac Lake. But is that a reason to bash the supporters of creating a community store? Here are a group of people that are actually attempting to help the retail store situation in Saranac Lake and the 'fighting, Wal-Mart supporting, TOTT phone callers' have nothing good to say about them. That is just very sad.

The Secret to Beating Wal-Mart!!!

The secret to small businesses beating Wal-Mart has finally been released in a Letter to the Editor of the ADE from Marc Joseph.

Actually it's really a quite simple two step process:

1) Buy (and presumably read) CEO Joseph's book - “The Secrets of Retailing … or How to Beat Wal-Mart.”

2) Purchase your products from CEO Josephs online wholesaler dollardays.com

Writing a letter is certainly cheaper than purchasing an ad I guess.

Movie - Talking to the Wall

Wednesday, August 23 at Bluseed Studios ($1 donation for use of Bluseed Studios)

See the movie, Talking to the Wall

See comments about this move HERE.

Community Store Meeting

Tuesday, August 22 at 7 PM in the Harrietstown Hall.
Much more at Saranac Lake Community Store.

Differences

There are different kinds of activism. You can call 'Talk of the Town' and complain, you can pound a 'Wal-Mart YES' sign into your lawn or you can actually do something. Yesterday, the Adirondack Daily Enterprise editorial board bemoaned the fact that Saranac Lake has no leaders. Today they publish an article about two leaders; Gloria Volz (member of Save Saranac Lake Coalition) and Gail Brill.

But Brill is apparently doing more than just leading the charge for the community-owned store; she taking steps to make sure that the local grocery stores are up to par.

Recently, Brill helped initiate a meeting with the district manager and a customer service representative of Grand Union to give the corporation a message: The local stores just aren’t cutting it.

“We told them what they were doing now wasn’t working for us,” Brill said.

But Brill cautioned that she doesn’t want Grand Union to go away. She wants them to improve.

Thankfully, tomorrow will be the last lecture to the community by the editorial board of the ADE.

Meet John Dicker

The author of "The United States of Wal-Mart" (4 out of 5 stars at Amazon), John Dicker, will be in Saranac Lake today. He will be signing books at Two Horse Trade Co. this afternoon.

This evening, at 7 PM, there will be a discussion of the book with Mr. Dicker at Blueseed Studios located at 24 Cedar St.

Costco vs Wal-Mart - Business Models

Reading about Costco and Jim Sinegal makes one question the Wal-Mart business model even more. Here is an article from the Seattle Weekly that I came across about Costco. It proves that all retailers are not the same.

The company is proving Wall Street wrong by adhering to a radical idea: Treating customers and employees right is good business.

A few excerpts from the article:

"Why shouldn't employees have the right to good wages and the right to good careers?" asks Sinegal one day last month, sitting in his strikingly unpretentious office, more like an alcove really, devoid even of a door separating him from his employees. Costco has told Wall Street again and again that it believes the key to its success rests with taking care of employees and customers.

Given the overpowering influence of Wal-Mart, the nation's largest private employer and the world's largest retailer, at times there has seemed no way out from the downward competitive pressure it exerts. Which is why Costco's defiantly different approach has grabbed the attention of the folks who study these things.

In politics, of course, Wal-Mart's team trumped Costco's. But in business, well, that's another story.

ADE Editorial and Letter

Realism and reason needed in Wal-Mart's wake. Today we get a lecture on reason from the Adirondack Daily Enterprise editorial board.

Those who were railing against Wal-Mart need to deal squarely and realistically with the question, "If not Wal-Mart, what?"

Now by 'railing' do you mean when you (ADE Editorial Brd) called for the firing of Cliff Donaldson for underhanded dealings with Wal-Mart or do you mean the majority of people that would welcome a smaller Wal-Mart located downtown? They end with:

If everyone is willing to work together and give a little for the common good, then we're confident everything will be alright.

Who exactly wasn't willing to work with the so-called 'opposition'? Was CARD willing to negotiate their stance (basically the Wal-Mart stance) on the issue, was Wal-Mart willing to meet with anyone other than their supporters. In case you've forgotten, the answer is NO.

THE LETTER

Then we have a letter (probably the first of many) explaining how the arguments against Wal-Mart are flawed.

Some of the opponents of Wal-Mart talked of them competing with local businesses. I didn't hear any of this when one local was allowed to build a car wash right next door to an existing one."

So two car washes competing with each other is the same as Wal-Mart competing with Coakleys Hardware?

We all want responsible growth. Price Chopper worked with the area and built a very attractive store that blends in well.

So responsible growth is defined by making a store that 'blends in'?

I believe that if all the opponents of Wal-Mart would have sat down with them and our village board and approached this in an positive way, Wal-Mart would have been happy to work out the details.

Wake-up! It was Wal-Mart that did not want to sit down and work out the details! Wal-Mart does not 'work out details', they tell you how it's going to be.

Flawed arguments?

Walmartopia - The Musical

A musical about Wal-Mart. It's playing in NYC soon but may be coming to Vermont. Go here to listen to some of the songs.

TOTT Quips

Lot's of one line quips on TOTT this morning. Lot's of wailing and gnashing of teeth. The blame for Wal-Mart 'giving up' on Saranac Lake is being placed squarely on the three Democrats on the Village Board. But you have to wonder....if you were in favor of Wal-Mart building in SL why the hell didn't you vote for the Republicans who flat out said they supported Wal-Mart?

One really good idea put forth on TOTT was to form a coalition to save Saranac Lake from the Save Saranac Lake Coalition. It's unlikely to happen however, because it would mean actually having to do something besides making a phone call to the local radio station and giving a one line quip.

Upcoming Fun Events

Public Interest Meeting - Do you have concerns about Wal-Mart coming to Saranac Lake? If so, you are invited to join us at the Lake Placid Beach House for an informational meeting on Thursday, August 17 th at 630pm. Meet people who share your concerns and learn how you can be involved in an organized way. Discussion on recent events in Saranac Lake pertaining to Wal-Mart. Please come and bring a friend. This event is sponsored by the Save Saranac Lake Coalition. For more information contact email slconcerns@yahoo.com or call 518-418-9479.

Book Signing and Discussion - The author of The United States of Wal-Mart, John Dicker, will be in Saranac Lake on August 18. A book signing will be held from 12:00 to 4:00PM in front of Two Horse Trade located on Broadway in Saranac Lake. Discussion and dessert will be that same evening at Bluseed Studio starting at 7:00PM. A $1 donation for the use of Bluseed would be appreciated. For more information you may contact the Save Saranac Lake Coalition via email slconcerns@yahoo.com or phone 518-418-9479.

Movie Showing - Talking to the Wall examines the proliferation of big box chain stores. This is an interesting documentary which is relevant to the current Big-Box/Wal-Mart issue facing our communities. The movie will be shown at 7pm on Wednesday, August 23rd at Bluseed Studios in Saranac Lake. $1 donation for use of Bluseed. Please come and bring a friend. This event is sponsored by the Save Saranac Lake Coalition. For more information contact email slconcerns@yahoo.com or call 518-418-9479.

Concert - Butterfly Sky - This duo tours extensively in the US and have repeatedly witnessed how Wal-marts adversely affect small towns all over the country. This year they have heard what was going on with the Wal-mart issue locally, and decided to join with SSLC to create a larger event in support of the Coalition's efforts. Showtime is 7:30pm on Saturday, August 26 @ Bluseed Studios. Tickets can be purchased for $15 Major Plowshares, Mountain Gift and Powder or contact SSLC @ slconcerns@yahoo.com or call 518-418-9479.

Paid Critics are Paid Liars for Wal-Mart

Paidcritics always make me chuckle. They love to pull the wool over the eyes of Wal-Mart supporters. The paid Edelman PR liars over at paidcritics.com sound like GW Bush. You are either for Wal-Mart Associates and Wal-Mart,Inc or you are against them both. Well maybe someone could think of a few ways you could be for the 'associates' in ways that Wal-Mart might not think is good for the company.

The Edelman PR paid liars today are telling the heart throbbing story of how Wal-Mart is rebuilding Waveland, MS. Go to the independe Wal-Mart supported life at wal-mart blog or just go to walmartfacts.com and click on 'blog' to hear Wal-Mart associate Jerry tell his story (I bet his salary doesn't get capped).

Wal-Mart got some badly needed PR when they went to the aid of hurricane Katrina victims. Why the Waltons themselves, good people that they are, donated $8 million dollars to hurricane relief. That's about 0.01% of their yearly dividend income, estimated to be about $800 million a year.

However, some people know that the Waltons and Wal-Mart Inc. got 100% tax deductions for their donations?

H.R.3768 Suspends limitations on individual and corporate tax deductions for cash contributions to charitable organizations made between August 28 and December 31, 2005.

Yes, you can get your facts at Walmartfacts or paidcritics or workingfamiliesforwalmart. But if you do, you are not getting the whole story.

Read an evaluation of Wal-Mart charity here.

Like the flowers and other tokens of courtship from a suitor who later becomes a wife-beater, such gifts are often followed by demands for public subsidies and tax breaks. In this way Wal-Mart is repeating the strategy that has served it so well in Arkansas, where Wal-Mart and the Waltons' charitable gifts are many and company critics are relatively few. Says Lindsay Brown, president of the Central Arkansas Labor Council, "It's a hell of a plan, and it works."

The Cost of Wal-Mart

From a PBS interview of John Lehman, a manager at Wal-Mart for 17 years.

Is Wal-Mart good for America?

... I don't think Wal-Mart is good for America because what's happening is, yeah, you can get maybe a bag of groceries more, or you might spend $50 at Wal-Mart and spend $50 at Target or Kmart and you might get a few more items at Wal-Mart because of the prices.

But there's a cost to low prices. And the cost is [that] good, American jobs are being shipped overseas. … Many times union jobs are going away, and those same people are having to go to work at Wal-Mart, making a fraction of what they made there and not getting good health care; not getting a good company-paid pension, company-paid health care.

So no, I would say Wal-Mart is not good for America. I think the average person out there that you run into in a Wal-Mart store may say: "Yeah, I love this place, because look at the stuff I can get. Look at the cheap prices." But there's a cost for these low prices, and many people don't realize that.
But many people don't look behind that big, yellow smiley face that they show on TV and see the reality of what's happening to our economy here, what's happening to good, American jobs in the United States here. ... Workers are being worked off the clock many times. There's lawsuits, class-action lawsuits, in over 30 states right now of workers saying: "Enough is enough. I'm being worked off the clock, not paid for my overtime." ...

And look behind that yellow smiley face and see what's really happening to workers. Good, American jobs like at Thomson Electronics in Circleville, Ohio -- that poor guy making $15, $16 an hour, now he's [going to be] making a fraction of that, $7, $8 an hour, working 32 hours a week; a meager health care plan that he's got to pay for now, token health care plan; no pension; no future. There's a revolving door at Wal-Mart -- workers coming in, seeing the reality of it. They've been duped by the yellow smiley face many times. Then they go right back out the same door they came in a week later, a month later, a year later, whatever, however long they choose to stay. That's what's happening behind closed doors. That's what's happening [behind] that big, yellow smiley face. ...

On the other hand, who really cares about that other guy's job? I mean I got to save $0.38 on my underwear. Being a consumer is what it's all about.

Wal-Mart's Profits Drop

Wal-Mart's quarterly profit dropped 26%. There may be lots of reasons; gas prices, remodeling stores, trying to sell upscale products, loss of customers. But mainly, because they couldn't compete in Germany and had to sell out to Metro AG at an $863 million loss. Why don't Germans and Koreans love Wal-Mart? Is it because Wal-Mart is not good at adapting?

Exporting Our Jobs

Want to play "Avoid the Wal-Mart Manager"? Then go to ExportingOurJobs and click on the Wal-Mart game in the lower left corner of the page. Have fun and learn about Wal-Mart at the same time.

Does Wal-Mart Have Government Influence?

I completely missed this little gem from Sirotablog.

Maryland Gov. Bob Ehrlich (R) just after vetoing legislation that would require Wal-Mart to provide its workers with more adequate benefits.

Who's that shady looking character behind Gov. Ehrlich? None other than Wal-Mart VP Mr. Eduardo Castro-Wright.

Surely, Gov. Bob didn't get anything from Wal-Mart!

How about the Wal-Mart sweetheart deal with the federal Labor Department over child labor allegations?

...the agreement granted Wal-Mart privileged treatment by giving it 15 days’ notice of future investigations of any wage-and- hour complaints applied only to complaints alleging child labor violations.

Has Wal-Mart Really Given Up?

Wal-Mart, Inc. does not have a very good record on being upfront with people, whether they be employees, supporters or anyone for that matter. A company that routinely flouts the law, with a certain level of impunity, cannot be trusted no matter what assurances they give. Rumors are rampant that this talk of giving up on locating in or around Saranac Lake and/or the Adirondacks is nothing more than some sort of PR ploy. It is a shame that Wal-Mart was not even willing to discuss locating downtown in a downsized store. Unfortunately, Wal-Mart has only one way of doing things and because of that they are losing customers all around the USA. They fact that the company cannot adapt was proven when they failed in Germany. Only time will tell that they have truly given up in the Tri-Lakes area.

Wal-Mart Bids Saranac Lake Adieu

Wal-Mart pulls out. At least that is what the Adirondack Daily Enterprise is reporting. Wal-Mart has ended the property purchase agreements with Carcuzzi Auto Car Care Center and Tri-Lakes Auto Mall.

“We got a letter the other day saying they were terminating the agreement,” said Carcuzzi Car Care Center Bob Bevilacqua said Friday. “As far as I know, it’s off completely. They said they are cancelling their contract with us.”

Wal-Mart representatives told Bevilacqua in June that “unless the public interest changed and political climate changed, they would be terminating it,” he said.

Of course, Wal-Mart has 'left' before, let's not forget that. Bevilacqua also said

“Doug Jerum told me that if they couldn’t get into Saranac Lake that they were going to write off the Adirondacks,” he said. “He told me flat out, ‘We’re not considering going to Tupper Lake.’”

Wal-Mart....it's our way or the highway.

Walmartstores.com

Ever visit walmartstores.com? It's an experience! Here is one of their 'community commitments':

We will adopt a store siting and construction policy that addresses environmental, social, cultural and historical considerations.

Well, I guess that would just be opened to interpretation, right?

How about this one:

"We believe that one of the keys to our success is our people and how we treat them. Simply put, we treat our associates and suppliers with respect."

Does that statement make you want to laugh or cry?

Or the Wal-Mart cheer! Do you know how it originated?

The cheer originated after our founder, Sam Walton, visited a tennis ball factory in Korea where the workers did a company cheer and calisthenics together every morning. He liked the idea and couldn't wait to get back home to try it with his associates.

I'm kinda surprised ole Sam didn't force the calisthenics on his 'associates' too.

How about the 'Sundown Rule'? Basically, ole Sam believed you shouldn't put off til tomorrow what you can do today. I bet that is the basis for Wal-Mart's policy of unpaid work and lock-ins.

Want to know how Wal-Mart gets everyday low prices? It's right there.

The key to our ability to maintain Every Day Low Prices (EDLP) has been our commitment to forge common ground among the hundreds of thousands of people in our company. Our dedication to provide the best possible service to our customers helps drive the Every Day Low Price philosophy. Going beyond the buyers who negotiate lower prices with our suppliers, we all can affect EDLP by controlling our expenses and being cost-conscious in our day-to-day business.

Does this include the company Directors and executives? I wonder how much the Directors are compensated? Oh wait, it's public knowledge, right there on page 9.

$60,000 compensation, 2957 shares of stock worth about $133,000 and 'other compensation'. Not too bad for someone that is already filthy wealthy huh? But they probably have to attend one or two meetings a year.

But that's chump change compared with what the Directors give the 'execs'. Salaries of anywhere from $642,056 to $1,292,308 (click on public knowledge above and see page 23). Of course that doesn't include millions in stock, other annual compensation, other compensation and LTIP payouts. Oh yeah, Wal-Mart is definitely 'cost conscious' where it counts.

Wal-Mart Follows the Law

Wal-Mart has recently been forced to recognize the Chinese 'labor union' (actually an arm of the communist government). Wal-Mart explains why they did this:

"Our policy is to comply with the laws of every country in which we operate, and in China it is required by law that if even one associate asks to join a union, then you have to install the union in the store."

There may be some disagreement with this statement that Wal-Mart complies with the laws of every country. Maybe the Saskatchewan Labor board disagrees or the fact that Wal-Mart is sued once every two hours may be an indication that the Wal-Mart statement is not completely factual. Maybe this article might suggest that the claim may not be true.

Because the consequences are so minimal, Wal-Mart does not hesitate to break the law in order to stay union-free. Indeed, as the Greencastle handbook to managers notes frankly, during a union drive, "You...are expected to support the company's position.... This may mean walking a tightrope between legitimate campaigning and improper conduct." Wal-Mart has been found guilty of many violations of workers' right to organize, even firing union sympathizers. But paying fines--or in some cases, merely hanging a sign in the break room that states that the company violated workers' rights--is for Wal-Mart simply part of the cost of doing business, a small price to pay for keeping unions out. Until labor laws are reformed to make violating workers' rights a criminal offense--punishable by sending managers and CEOs to prison--running Wal-Mart campaigns based on National Labor Relations Board (NLRB) challenges may be fruitless.

Did they comply with the law in the State of Connecticut? Let's see:

HARTFORD — Wal-Mart has agreed to pay a $1.15 million fine and correct a slew of environmental violations at 22 of its Connecticut stores, violations that state officials said showed a systematic disregard for the law.

Maybe the 'comply with the law' statement should be re-written to say:

"Our policy is to comply with the laws of every country in which we are trying to establish a foothold for our business".

Liars.

Community Store Website

Announced today in a Letter to the ADE Editor.

Click HERE for the website.

Click here for answers to all your questions about a Community Store.

INFORMATIONAL MEETING
AUGUST 22 7 PM
HARRIETSTOWN HALL

Wal-Mart Shoppers Complain

They shopped at Wal-Mart for the low price and got what they paid for. I'm pretty sure it's just the odd case though.

Does anyone remember Wal-Mart 'Black Friday'?

Customer service at Wal-Mart.

Tioga, PA

When the Walmart store in this area first opened it was a real blessing. Eventually, other businesses in the area started to fail and finally, closed. Now that there is nowhere else to shop Walmart has gone downhill as well. The selection is terrible, and the quality of items has turned sour.

Don't get your prescription for Tamiflu filled at Wal-Mart!

The reason the doctor called in the rx was because it was already 5pm as we were leaving his office and this med needs to be started within a 24 hr period of the first flu symptoms.

Although this was explained to them they had no interest in our urgency and were very unsympathetic.

How much money did she save on the Wal-Mart bike after the doctor bills were paid? Remember, Wal-Mart forces suppliers to cut costs.

On August 12th, my daughter was riding this bike down a hill when the crank and pedal came off. The bolt came right out of the crank and you could see where the threads were stripped or crossed over. This caused her to flip over the handle bars.

She received a broken left arm, a sprained right wrist and 3 stitches in her chin. On August 13, I returned this bike to Wal-Mart and they gave us a new bike. They said that once the bike leaves their store, they are not responsible for accidents, even if they assembled the bike.

This guy got a great buy on some tires at Wal-Mart. He's lucky to be alive.

On the 30th, My family and I were returning home from dinner. On the interstate, the van started to sway abit. My wife asked me what was I doing, and I told her it wasn't me, that it must be the highway, where they had just re-paved. Upon exiting the interstate the van started to swerve again. The next thing we knew, we heard what we thought was something that hit the van and the left rear of the van dropped down. We thought we had blown a tire.

How about vision care at Wal-Mart, want to save money?

News Ten Now Reports

Go to the website and view the video.

Beaverton, OR Says No to Wal-Mart

Announced in the The Times.

Beaverton’s City Council Monday night unanimously rejected plans to build a new Wal-Mart store in Cedar Mill.

More on the Wage Increase

When Wal-Mart reported that they were 'capping' wages in all of their job categories I naively assumed they would still give 'cost of living increases'. But, it's more like long-time employees are being forced to give up wage increases (unless they change positions) so that money can go to starting employees.

Go here and read some of the comments from real Wal-Mart employees (although they are probably just disaffected union stooges). I guess Wal-Mart employees just don't get the 'Free Market'.

Does the wage cap apply to Wal-Mart executives?

Wal-Mart Public Relations

It would be interesting to know how much Wal-Mart pays for Public Relations advice. They sure aren't getting much bang for their buck. Look at 'PaidCritics.com', Wal-Mart's gunslinger critics that are paid to criticize Wal-Mart's critics (boyoboy that is complicated). They are having a ball criticizing WakeUpWalMart's bus tour of the country and some of the Democrats that show up at each stop.

"It’s time for the Paid Critics and their candidates to stop playing politics and start offering real solutions to the challenges facing working men and women across this country."

I agree. It's time for someone to start offering real solutions to the challenges facing working men and women in this country. Where are the Republicans? They hold all the power. They control the government. They were elected with dollars provided by Wal-Mart. They have been in power for over 5 years. When will they start offering real solutions?

Isn't there some Wal-Mart VP in charge of overseeing these guys? Maybe Wal-Mart could get better PR if they outsourced their PR overseas. They could save money at the same time.

The Writing On The Wal

One of my favorite Wal-Mart information websites is "The Writing On The Wal". I like it because it is written by independent, intelligent, unpaid bloggers and because they always have the most up-to-date info on all things Wal-Mart. I encourage visits to that website for anyone that wants to read well written commentary on Wal-Mart.

I read Walmart Watch and WakeUpWalmart too, which are union supported websites. But I tend not to cite them too much for the same reasons that I discount what I read on Walmartfacts, Working families for WalMart and Paidcritics (all paid by Wal-Mart).

Wal-Mart Raises Wages

Wal-Mart has announced that starting employees deserve a pay increase "based entirely on wage surveys in every market where we do business".

The nation's largest private employer is rolling out an average pay increase of 6% for new hires at 1,200 Wal-Mart and Sam's Club warehouse stores nationwide, including some of its nearly 200 stores in California.

This is in spite of the fact that Wal-Mart has long claimed that it cannot afford higher wages for its employees. However, you do not want to remain a shelf stocker, greeter or cashier forever. The new policy also means move up in the ranks or your salary remains stagnant.

Wal-Mart is instituting the salary caps to encourage workers to move up through the ranks rather than remain in the same job for years. Employees who earn more than the maximum amount for their job won't see a salary decrease but will no longer be entitled to raises unless they change positions.

The announcement by Wal-Mart comes as the company continues its battles against legislative oversight of how it treats workers.

Heavy criticism of Wal-Mart and loss of 8% of its customers may actually be making Wal-Mart re-think its business strategy.

2005 Data

Wal-Mart profit margin 3.6%

Costco profit margin 1.9%

BusinessWeek ran through the numbers from each company to compare Costco and Sam's Club, the Wal-Mart warehouse unit that competes directly with Costco. We found that by compensating employees generously to motivate and retain good workers, one-fifth of whom are unionized, Costco gets lower turnover and higher productivity. Combined with a smart business strategy that sells a mix of higher-margin products to more affluent customers, Costco actually keeps its labor costs lower than Wal-Mart's as a percentage of sales, and its 68,000 hourly workers in the U.S. sell more per square foot. Put another way, the 102,000 Sam's employees in the U.S. generated some $35 billion in sales last year, while Costco did $34 billion with one-third fewer employees.

Yet the cheap-labor model turns out to be costly in many ways. It can fuel poverty and related social ills and dump costs on other companies and taxpayers, who indirectly pick up the health-care tab for all the workers not insured by their parsimonious employers. What's more, the low-wage approach cuts into consumer spending and, potentially, economic growth. "You can't have every company adopt a Wal-Mart strategy. It isn't sustainable," says Rutgers University management professor Eileen Appelbaum

Advice to the Poor

"it's not Wal-Mart's fault that its associates are poor. "

You see these people are poor because:
(paraphrased)
1) They charged too much on their credit cards.
2) Had kids and now can't support them.
3) Didn't get an education.
4) Failed to save for the future.
5) Made unnecessary purchases.

Can anyone think of other reasons why people are poor and should be punished or abandoned? Maybe you add some more good advice for the poor.

con't. "If they had made the correct choices in life, the wages they receive would be sufficient to sustain them and they would be on their way to better lives".

Yes, you can easily live on the wage Wal-Mart pays you if:

1) Tear up all those credit cards
2) Give the kids up for adoption and get sterilized
3) Go to medical school or law school
4) Save up at least 50% of all the money your poor relatives give you
5) Don't buy unnecessary stuff. Wait, forget that last one, Wal-Mart wants you to buy unecessary stuff.

Then just live on the $320 (minus taxes and health insurance) you take home everyweek.
(No this isn't from me, it came from a pro-Wal-Mart blog. With friends like that, Wal-Mart really doesn't need any enemies.)

Does Criticism of Wal-Mart Effect Anything?

Today at the Washington Post:

Or consider the environmental behavior of U.S. companies at home. This used to be the classic case of politics leading business: For most of the past generation, regulators have forced environmental rules on grumbling corporations. But in the current debate on climate change, this order has reversed itself. Impatient companies are capping their own carbon emissions: Wal-Mart has promised to double the efficiency of its vehicle fleet and achieve a 30 percent cut in its stores' energy usage. Its motive is not complicated. Internet-enabled critics have assaulted Wal-Mart, and the firm's polling has suggested that 8 percent of shoppers have quit visiting its outlets because of its stance on social issues. An environmental makeover was essential to the brand.

The Dark Heart of Wal-Mart

From the Houston Chronicle last year, an article about keeping employee tenure short at Wal-Mart. Lots of part-time employees and a high employee turnover rate of 50% a year helps keep wages and benefits down at Wal-Mart. This is the primary basis of their Always low prices. Always business model. Other retailers must do the same to compete with the giant. Wal-Mart suppliers keep costs down by shipping jobs overseas.

Wal-Mart is not alone in struggling with these costs. But its proposed solutions reveal the company's dark heart. It's extracting the cost from those who can least afford it.

Business doesn't look back. Wal-Mart led the charge from the town square to the edge of town. It trained us to believe that the cost of our purchases was all that mattered. Somewhere along the road, the company started believing that, too.

It taught us to expect low prices — always. Chambers' memo shows a company that believes in the low price at any cost.

Wal-Mart makes people poor.

During the last decade, dependence on the food stamp program nationwide increased by 8 percent, while in counties with Wal-Mart stores the increase was almost twice as large at 15.3 percent, according to the study. Although Wal-Mart employs many people living in its communities, for most, the hours worked and the wages paid do not help these families transition out of poverty, the study said.

This article from The Globalist, a syndication of the San Jose Mercury News and the Boston Globe compares and contrasts Wal-Mart with General Motors.

No company of Wal-Mart's size and influence can long remain a truly private enterprise. By its very existence and competitive success, it rezones our cities, determines the real minimum wage, channels capital throughout the world — and conducts a kind of international diplomacy with a score of nations.

In short, the company's management "legislates" for the rest of us key components of U.S. social and industrial policy.

Bus Tour Stories

WakeUpWalmart started a bus tour of the USA last Tuesday. It's purpose is to educate citizens about corporate responsibility, living wages and a fair workplace. Yeah, yeah, I know that Wakeupwalmart is funded by the evil unions and it's not fair for workers to band together to fight multi-billion dollar corporations. Afterall, Wal-Mart has an 'open door policy'. And, that the bus tour is more about politics than people (Wal-Mart talking point). It never ceases to amaze me that Wal-Mart, the largest, richest company on earth, whines about being picked on. But be that as it may, here are a couple of stories concerning the bus tour.

Long, Hot Summer for Wal-Mart by Liza Featherstone (BTW, she points to a link to a story at Fortune Magazine concerning Wal-Mart and goal to clean up its environmental record.

The Bus tour's Baltimore stop.

Wal-Mart's paid PR lackies at Edelman's 'Paidcritics' are very upset about all this political nonsense. Afterall, it's Democrat politicians showing up at the bus tour stops and not Republicans.

Wal-Mart has a lot more money invested in Republican senators and congressmen including our own John Sweeney and John McHugh than they do in Democrat congressmen and women. They depend on Republicans to prevent a minimum wage hike and to promote the abolishment of the Estate Tax.

Percentage of Wal-Mart PAC money to Republicans in 2000 was 85%, 2002 was 78%, 2004 was 78% and thus far in 2006 is 70% (they need to start buying some Democrats now that the winds appear to be shifting).

walmartdailyshow

The Daily Show's Lewis Black on the Wal-Mart Movie

Wal-Mart, Salmon and Environmental Defense

This post (on The Writing On the Wal blog), concerning Environmental Defense opening an office in Bentonville, AR, immediately caught my attention today.

Wal-Mart has started a campaign to be more environmentally friendly because it saves the company money in the long run and gives them badly needed PR. You can read all about the new 'green' Wal-Mart here.

In Wal-Mart’s case, Environmental Defense was one of several groups Wal-Mart contacted in early 2005 to help formulate a green policy unveiled by Scott last October. Under that plan, Wal-Mart set goals of using 100 percent renewable energy, creating zero waste and selling more products that sustain the environment.

Environmental Defense is the group that got MacDonald's to stop using styrofoam containers in packaging their food. So they can be an effective organization. They often use economic arguments to convince companies that it is cost-effective to do what is right concerning the environment. However, it's easy for Wal-Mart to require that suppliers not let their truck engines idle while making deliveries or to change store lighting to save on energy costs. But other recommended changes may require Wal-Mart to do things that are against the Wal-Mart 'Always low prices, always' culture.

Wal-Mart is one of the biggest sellers of farmed seafood in the world, but they have been criticized (a chapter from Charles Fishmans book, The Wal-Mart Effect) for the effects on the environment of these fish farms, especially salmon farms in Chile. [Note: careful about reading this article, you may never eat farmed salmon again.] Environmental Defense on the other hand, has an ongoing campaign to change the fish farming industry. Environmenal Defense goes so far as to claim that eating farmed salmon could be harmful to your health. Several months ago, Wal-Mart vowed to only sell fish obtained from environmentally sound sources.

The world's largest retailer has pledged that all of its U.S. fresh and frozen fish, excluding farmed fish, will eventually come from fisheries certified as being "sustainable" by the Marine Stewardship Council, meaning that the sea areas they come from are not being over-fished.

So here is a question for Environmental Defense and for Wal-Mart. (1) Is Wal-Mart going to require it's suppliers of farmed salmon to follow the salmon fish farming recommendations of Environmental Defense? (2) Will Wal-Mart allow the fish farmers to raise their prices to cover these changes?

Lee Scott wants the fish farming industry to raise it's standards, but the fish farming industry farms the way it does because Wal-Mart forces them to cut costs.

Part of the reason Wal-Mart can sell a salmon fillet for $4.84 is that, as Leape puts it, "they don't internalize all the costs." Pollution ultimately costs money--to clean up, to prevent, to recover from. But right now those costs aren't in the price of a pound of Chilean salmon. (From the Fishman article)

An MSNBC web poll shows that 61% of respondents don't believe that Wal-Mart will live up to its environmental pledge.

A Couple Wal-Mart Parodies

Thrall-Mart Always low standards, always. Brought to you by 'Cracked'.

WalmartDotGov

Ballston, NY Rejects Wal-Mart

From the Albany Times Union:

The Town Council said "game over" Tuesday to Wal-Mart and its plans to build a super center on Route 50.
By a unanimous vote, the council rejected Wal-Mart's application, resulting in an eruption of cheers and standing ovations from residents.

Before the vote, Albany attorney Mary Beth Slevin, who represented Wal-Mart's proposal, said the retail giant looked forward to working with the Town Council. She was unavailable for comment after the vote.

Councilwoman Mary Beth Hynes, meanwhile, had challenged fellow board members to take a position on the proposed Wal-Mart.

"I urge my fellow board members to join me tonight in sending an unambiguous message that, as far as the town of Ballston is concerned, the door will be closed to Wal-Mart and big-box development once and for all," she said in a prepared statement.

Wal-Mart Discussion on Local TV

Mountain Lake PBS will air a panel discussion on the local Wal-Mart issue this Friday evening at 8:30 PM. It will be an episode of Mountain Lake Journal and the panel will consist of Brian Mann (NCPR), Jack LaDuke (WCAX-TV) and Peter Crowley (Adirondack Daily Enterprise). I believe the episode will also be shown on Saturday at 7 PM.

Wal-Mart Job or Manufacturing Job?

1954: Huffy opens the Celina, Ohio, plant. At its peak, the plant produced 1 million bikes a year.

1998: Pressure from Wal-Mart forces Huffy to close the bicycle plant in Celina, putting 1,100 employees out of work. The jobs were moved to a nonunion factory in Missouri.

1999: Huffy, pressured to continue lowering costs, closes its last two U.S. bicycle plants—in Farmington, Mo., and Southaven, Miss. The move eliminates 600 jobs. The company contracts with fac-tories in Mexico and China.

2001: Huffy ends its manufacturing contracts with Mexico and begins relying almost entirely onfactories in China, where Chinese workers earn only 33 cents an hour and frequently work sevendays a week.

Wal-Mart creates good jobs? I bet Ruth Schumacher and her husband would disagree. Now Mr. and Mrs. Schumacher are dependent on Wal-Mart's everyday low prices.

Laid-off factory worker Ruth Schumacher rises before the sun most days and earns $7 per hour tending the breakfast bar at a Holiday Inn in Celina, Ohio. She would like to set out a tip jar for the occasional dollar, but management forbids it.

After work, she occasionally goes next door to shop at Wal-Mart or at Kmart one town away.

“They’ve got real good bargains,” she said of Wal-Mart, echoing a generation of thrifty shoppers.

Never mind that Wal-Mart is a major reason Schumacher no longer has a $12-per-hour job at Huffy Corp.’s bicycle plant. Five years ago, Wal-Mart pressured Huffy to lower the cost of its bikes, so Huffy closed its Celina plant. Schumacher’s job and the job her husband held at Huffy eventually ended up in China.

Wal-Mart's response?

“We are in business to take care of the customer,” spokeswoman Melissa Berryhill said. “We are going to do what we need to do to deliver everyday low prices to our customers, and we are going to go where we have to go in order to do that.”

So to get low prices Wal-Mart ships good jobs overseas thereby creating more poor people that need their everyday low prices. Excellent strategy.

Maybe if we all get minimum wage jobs, Wal-Mart will give their stuff away.

Questions Wal-Mart's Effect on the Economy

Speaking from the heartland, Etson Hougland, suggests that Wal-Mart should be under greater scrutiny:

Wal-Mart not only dictates the price, it also dictates the terms, conditions, source and in some cases the material used in the products it purchases. It has been the leading exponent of forcing American firms to move production of products to a Communist “slave labor” state – China. It is using its economic power to orchestrate the destruction of American industry. Its economic power is used to destroy local independent merchants in virtually every community in which it operates.

In conjunction with this power, Wal-Mart provides substandard pay, medical and retirement benefits to its hundreds of thousands of employees while denying them the option of obtaining union representation. The Bush administration has taken countless legal steps designed to weaken the power of labor and destroy any vestige of legal representation for the working people of this nation. This policy combined with a suicidal unfair trade policy has allowed multinational corporations to exploit slave labor in order to undermine our nation’s entire economic and benefits system.

He goes on to point out that China deliberately pegs it's currency at a very low value resulting in products being imported into the USA 30-40% below their actual value.

I'm no fan of GW Bush, but I think others deserve more credit for the current state of labor (Reagan). But Bush hasn't done a whole lot to get the Chinese to more fairly adjust the value of their currency against the US dollar either.

He does make the point that we need more insight into the effects of Wal-Mart on our economy. Charles Fishman (The Wal-Mart Effect) did not get much help from Wal-Mart when writing his book. Wal-Mart Corporation is famously secretive. Fishman couldn't even get Wal-Mart suppliers to comment on their relationships with Wal-Mart.

Wal-Mart in China Creates a Union

Canadian Wal-Mart workers unionized in Jonquiere,Quebec. Wal-Mart promptly closed the store. Now Chinese Wal-Mart workers have formed a union.

The Wal-Mart workers were reported to have set up the union in Jinjiang, Quanzhou, in Fujian province.

Will Wal-Mart close that store? I doubt it. Wal-Mart can't afford to alienate China.

Opposing Opinions: Facts vs Fiction

There are two 'guest editorials' printed in todays Adirondack Daily Enterprise (UPDATE: Links have now been added). Both are well written, but couldn't be more different. They are not different because they disagree on Wal-Mart locating to Saranac Lake.

One editorial is by Mr. Lee Keet, replying to a guest editorial written by Susan Seaward earlier in the week. Unlike Ms. Seaward, Mr. Keet uses facts and figures from specific sources to explain why he thinks Wal-Mart may not be in the best interest of Saranac Lake and the surrounding communities. Mr. Keet ends his editorial asking area residents to work together to bring a retail business that will be consistent with the character of our community.

The other editorial is by Mr. Donald G. Perryman. He points out that generations (natives) of 'adirondackers' have taken care of our environment and resources, not the 'tree huggers', 'preservationists' and 'do-gooders' (transplants). So we should trust their judgement in "managing and planning regarding the park". "The larger villages provide a kind of oasis in the wilderness where residents can acquire the goods and services that fulfil their needs". So it makes sense that any retailer that wants to locate here should be welcomed with open arms. If the experts say they need a 121,000 sq ft facility, that should be good enough for us. They are the experts you see. Welcoming Wal-Mart is an opportunity to 'revitalize' the Village of Saranac Lake. The local merchants will benefit from this. Mr. Perryman tells us what he 'thinks' will happen.

Do you see the difference between the two editorials? Fact vs wishes (maybe even fiction), certainly facts vs 'what I think' or, in the case of Ms. Seaward, what Wal-Mart tells me.

This is the basis of the debate about Wal-Mart locating to Saranac Lake. At least 60% of village residents are concerned about the possible effects of a large Wal-Mart on our community. They have read articles, reports etc that justifies their concerns.

On the other side, Wal-Mart supporters want a cheap, one-stop place to shop period. They don't really care about the possible effects of a super retailer on our community. But they can't just come out and say that. So they come up with 'soundbites' based on 'what they think', truthiness or wishful thinking.

Let's see some facts, independent of Wal-Mart, that show how Wal-Mart will be good for Saranac Lake. That's what 3/5's of the Village Board want also.

SAGA Opens Informational Storefront

Announcement from SAGA.

Store Front Opens
On Tuesday July 25, 2006, SAGA unveiled its new downtown Saranac Lake storefront located at 29 Broadway. SAGA's intent is to use the location, window space and a small portion of the interior as an "information center" promoting appropriate retail development, continuing efforts to establish a size cap for retail spaces, and furthering its education campaign as to the impacts of inappropriately sized big-box retailers in the Saranac Lake area.

Information will be posted on the storefront window and there will be an effort to staff the space on a limited basis, depending on available volunteer help. It should be noted that SAGA is paying rent for this space and that it is supported by local dollars - not some multi-billion dollar mega-corporation from someplace like Arkansas.

There is an effort on the part of Wal-Mart and its supporters to influence the community with inaccurate, misleading, and deceiving "information." Wal-Mart has ramped up its PR campaign, perpetuating myths that are not grounded in any reality. They have found some local folks to believe them and even repeat them. The storefront will be focused on giving accurate information about the impacts (positive and negative) of different sized retailers on the community of Saranac Lake.

Although SAGA is not specifically opposed to Wal-Mart, we are very critical of its oversized proposal and the damaging effect it will have on Saranac Lake. We make it no secret that if they size a store appropriately, we will not oppose Wal-Mart. However, Wal-Mart and representatives of the local Wal-Mart support group, CARD, have shown no interest in discussing a reasonably sized store - they make it clear that they only support a 121,000-sq-ft Wal-Mart Super Center. We have seen no desire on their part to compromise.

Residents concerned about out-of-scale retail development in Saranac Lake are willing to put their time/money where their mouth is. Homemade signs, informational storefronts, organizations, community store development etc., they don't need the support of the largest corporation on earth to get their message out there.

Fair Labor Practices - USA vs Canada

I have mixed feelings about the need for Unions, however, I also understand why and how they evolved in the USA. It was because of companies like Wal-Mart. Employees shouldn't have to 'organize', they should be treated with respect by employers.

Unions and Wal-Mart in the USA

There’s little secret to Wal-Mart’s success. The company will simply do whatever it takes to keep workers from organizing. “Staying union free is a full-time commitment,” reads one of the company’s training manuals. “[F]rom the Chairperson of the ‘Board’ down to the front-line manager … [t]he entire management staff should fully comprehend and appreciate exactly what is expected of their individual efforts to meet the union free objective.”

Read more here.

Unions and Wal-Mart in Canada

The Canadian legal system does not play Wal-Mart's game, if the company now thought they would. In two recent court decisions, the retail giant has been mercilessly exposed for its repressive and anti-social behaviour. Workers that were fired in Jonquière, Quebec, for their union activities, have to be compensated. In a Saskatchewan court, Wal-Mart's efforts to disqualify the Labour Relations Board from dealing with unionisation issues in Wal-Mart ran on ground.

More here.

Wal-Mart and Small Town Voter Influence

Wal-Mart has been fined for "failure to register with the Monroe city clerk before a 2005 referendum on so-called big box stores, in violation of state campaign finance law." Also, here.

The civil forfeiture action alleged that Wal-Mart spent money on ads, a mass mailing and a public relations company to encourage "yes" votes on the referendum.

The question on the non-binding referendum was "Are you in favor of the City of Monroe allowing the construction of a very large retail supercenter store?" Wal-Mart was not mentioned.

Unfortunately, the fine was a miniscule $753. Monroe, WI voters were smart enough to ignore the illegal Wal-Mart campaign.

Chicago Approves Living Wage Ordinance

The City of Chicago passed an ordinance, 35-14, which requires mega-retailers with sales over one billion dollars and stores with greater than 90,000 sq ft to pay workers at least $10/hr plus $3 in benefits.

"It's trying to get the largest companies in America to pay decent wages," said Alderman Toni Preckwinkle.

HERE.

Saranac Lake should do the same.

Nowata, Oklahoma and Wal-Mart

A small town of 4,000 people who were delighted when Wal-Mart opened a store in 1982. Within three years of Wal-Mart's opening, 18 existing businesses closed their doors.

But that isn't the bad news. In 1994 Wal-Mart closed the Nowata store to move into a supercenter 25 miles away.

(Shipley) said when Wal-Mart left, the downtown was literally boarded up and the citizens were left without local options for shopping other than driving 25 miles away to the Supercenter.
“The question you need to ask Wal-Mart is ‘How long do you intend to stay?’” said Shipley.

“I think I am up here to show how Wal-Mart devastated Nowata when it left,” she said. “Actually it devastated when it came in. Within 1 1/2 years, half the businesses [of the 18] were closed; within three years they were all closed.”

“I can tell you this, they had no sympathy for our town for the citizens who lived there,” she said.

More Here.

Summary of Local Wal-Mart Issue

Chris Knight, news director of WNBZ radio, gives a summary of where we stand with the local Wal-Mart controversy HERE at North Country Public Radio (Speakers required).

The Wal-Mart Debate: A False Choice Between Prices and Wages

On the left side of this blog is a link to a technical article called "Wrestling With Wal-Mart: Tradeoffs Between Profits, Prices and Wages".

There is now a more readable summary of this paper called The Wal-Mart Debate: A False Choice Between Prices and Wages. You can read it HERE.

The Case for Breaking Up Wal-Mart

The article, by Barry Lynn, published in Harpers Magazine a few weeks ago is not available at AlterNet. Click HERE to read it.

The stakes could not be higher. In systems where oligopolies rule unchecked by the state, competition itself is transformed from a free-for-all into a kind of private-property right, a license to the powerful to fence off entire marketplaces, there to pit supplier against supplier, community against community, and worker against worker, for their own private gain. When oligopolies rule unchecked by the state, what is perverted is the free market itself, and our freedom as individuals within the economy and ultimately within our political system as well.

It's too bad people couldn't understand this concept. But many are too busy consuming to be good citizens.

But the issue before us is not how Wal-Mart grew to scale but how Wal-Mart uses its power today and will use it tomorrow. The problem is that Wal-Mart, like other monopsonists, does not participate in the market so much as use its power to micromanage the market, carefully coordinating the actions of thousands of firms from a position above the market.

How is this a free market when Wal-Mart has such power over it's suppliers and politicians? Oh, but it is a free market you say? Read the article!

Wal-Mart and a growing number of today's dominant firms, by contrast, are programmed to cut cost faster than price, to slow the introduction of new technologies and techniques, to dictate downward the wages and profits of the millions of people and smaller firms who make and grow what they sell, to break down entire lines of production in the name of efficiency. The effects of this change are clear: We see them in the collapsing profit margins of the firms caught in Wal-Mart's system. We see them in the fact that of Wal-Mart's top ten suppliers in 1994, four have sought bankruptcy protection.

Behind the Greeting

An article in the St. Petersburg Times by SAUNDRA AMRHEIN:

During her lunch hour, Ellen Stanton walks stiffly back through aisles of discount clothes and frozen foods.
She wobbles into the employee break room on the artificial knee that makes her leg throb, on the foot rendered painful from diabetes.

She sits down and takes off her shoes. Hours on her feet greeting Wal-Mart shoppers take their toll.

Stanton worked almost her whole life, but she never thought she'd be working this long, at the age of 74.

Click on the link and read it.

Wal-Mart, Nuns, Civil Rights Activists and PaidCritics

Paidcritics.com is proud of the latest great business move (read P.R. move) by Wal-Mart. The idiots actually point to this article which they think reflects well on Wal-Mart.

Wal-Mart hired an ex-nun, Harriet Hentges, to be their liaison with nonprofit and academic groups and with government agencies dealing with the environment. Some time ago they hired Andrew Young, ex-mayor of Atlanta and owner of Goodworks International, to head a group formed to spread the word about the positive contributions of Wal-Mart Stores. What Wal-Mart don't seem to get is that real change is what will help Wal-Mart's image, not hiring ex-nuns and ex-civil rights workers to help with P.R.

Detroit news Eitorial writer Manny Lopez thinks this is really great for Wal-Mart and paidcritics wants you to read this column. Manny doesn't get it either.

Really Wal-Mart's newest blue-vesters are only the most recent of the company's brilliant business moves.

Manny, I doubt the P.R. bigshots in Bentonville are required to wear the stupid blue vests, although I'm pretty sure some of the people at paidcritics.com do wear them. Manny goes on to say:

I know, I know. Wal-Mart is supposedly the most evil company in America. Workers are abused and taken advantage of. Suppliers are nickeled and dimed to death. Mom-and-pop shops are put out of business. The horror of it all. It's awful, just, awful.

Manny goes on to point out that all this stuff is just the result of the 'free market', not Wal-Mart's fault. Manny doesn't even spend much time denying that Wal-Mart is evil.

Excluding the (rare) unfair work practices the company has been found guilty of, they've stayed a step ahead of the activists who despise the company's every move, mostly because they can't get their hands in Wal-Mart's pockets.

Manny conveniently forgets that Wal-Mart was sued about every two hours, 4851 times in the year 2000. There is even an entire website dedicated to class action suits against Wal-Mart.

And, even if Wal-Mart is evil it's only because Unions are equally evil says Manny.

When workers at a store in Canada approved representation, Wal-Mart closed the store. Are some of those things dirty? Perhaps, but no more so than the tactics the unions have used there and elsewhere.

Finally, Manny gives some good advice:

And quit shopping there if you worry for the so-called suffering, abused masses who have chosen to work there.

Don't worry Manny, several of us have taken your advice long ago and many more are joining. Why do you think Wal-Mart is investing so much in P.R.?

Andrew Young - Working Families for Wal-Mart Says:

For more than 40 years, Wal-Mart has carried out Sam Walton’s belief that people in rural, underserved communities should be able to buy the same things folks in the big cities were buying and at prices they could afford.

Yessireebob, us poor ole hayseeds need to buy them same store bought goods that the city slickers buy and we don't care if our store bought goods are junk as long as they are cheap.

Thanks Andy Young, you condescending idiot, I'm sure Martin Luther King would be proud of you.

Wal-Mart's P.R. War

Firing whistleblowers. Discriminating against women (and, most recently, black truck drivers ). Violating child labor laws. Locking workers into stores overnight. Mooching off taxpayers. Disregarding local zoning laws. Mistreating immigrant janitors. Abusing young Bangladeshi women. Paying poverty-level wages in the United States. Destroying small-town America. If you read any newspapers -- or even watch "The Daily Show" -- you can probably guess which company has been grabbing headlines for these and countless other charges and offenses.

Read the rest of this Liza Featherstone article HERE.

Sam says:

“You can’t create a team spirit when the situation is so one-sided, when management gets so much and workers get so little of the pie.” - Sam Walton

What would Sam say about the misleading $10.17/hr average wage that Wal-Mart claims to pay? Tell us what the median wage is please.

Yes, all Wal-Mart 'associates' are eligible for profit-sharing, health insurance, etc. Tell us the percentage of employees that actually qualify for these benefits.

It's sad that the largest most powerful corporation on the face of the earth deems it necessary to be so misleading to it's supporters.

Wal-Mart Critics:

Wal-Mart critics fall into many different groups. Which group do you fall into?

1. Honest, good hearted Americans who have been misinformed or misled.

2. Political critics and opportunistic trial lawyers who attack companies for being successful.

3. Labor leaders who want more money for their unions.

4. Snobbish elites (probably from away) who are self-appointed arbiters of taste and culture and who don’t appreciate Wal-Mart providing the great American middle class with countless cartloads of affordable goods..

5. Blame-America-first political radicals and environmental activists.

6. Journalists who make their living spreading doom-and-gloom economic reports.

7. People who see themselves as citizens first and consumers second.

Average wage vs. Median wage

"Wal-Mart full-time pay averages $10.17 per hour".

The MEAN is the arithmetic average, the average you are probably used
to finding for a set of numbers - add up the numbers and divide by how
many there are: (80 + 90 + 90 + 100 + 85 + 90) / 6 = 89 1/6.

The MEDIAN is the number in the middle. In order to find the median,
you have to put the values in order from lowest to highest, then find
the number that is exactly in the middle:

80 85 90 90 90 100
^
since there is an even number of values, the MEDIAN is
between these two, or it is 90. Notice that there is
exactly the same number of values ABOVE the median as
BELOW it!

Wal-Mart will not divulge the median wage of their 'associates'.

Could it be: 6 6 6 8 8 12 14 14 20 ?

Average= $10.44
Median= $8.00
Mode=$6.00

Supercenter has nothing to do with size

Sometimes size does matter.

A 121,000 sq ft WalMart Supercenter is the equivalent of 50 downtown independent stores.

Or, 12 Kinney's (a true regional company) Drug stores.

Or, 4 football fields.

Web Wars Escalate!

Wal-Mart supported Working Families for Wal-Mart (I am a card carrying member of WFFWM) is tired of being criticized by paid union leaders. It is every American's right to shop and buy stuff at one convenient location. You save money and time! Just try not to think about any possible peripheral effects of your actions.

In any case, Working Families for Wal-Mart must not be working very well. WFFWM has started up another website called 'paid critics'. This is a much better website than WFFWM in that it uses the tried and true 'Swiftboating' techniques designed by Karl Rove. In fact, 'paid critics' is actually run by paid critics, some who helped get us involved in the Iraq War, some who used to work for big tobacco and my favorite RedState blog founder and current Edelman PR employee Mike Krempasky (BTW, he is the least evil member of the group, but I voted for him).

To further escalate the Wal-Mart/Union war, we now have an entertaining site called 'a bunch of greedy right wing liars who work for Wal-Mart'. Seriously! You can even vote on who is the most evil greedy right winger (poor Mike is in 5th place, but I'm sure he's working on it when he's not playing poker or shooting pool).

One thing you can count on.....NO ONE at 'paid critics' comes from a 'working family'. These guys are out of work, ex-Republican party operatives doing what they do best. Does anyone believe these guys actually care about actual 'working families'?

We have paid Union members (from WakeUpWal-Mart) fighting $300 billion Wal-Mart, Inc. for living wages and benefits. Asking for fair labor practices. Asking that jobs not be shipped overseas. Then you have these guys:

Taylor 'don't count the votes' Gross,
Rick 'my house cost more than yours' Berman,
Kevin 'RNC' Sheridan,
Lee 'don't raise the minimum wage' Culpepper,
Mike 'I missed the recount riot' Krempasky,
Robert 'Tobbacco is Good For You' McAdam
and Terry 'I don't know Tom Delay' Nelson

These guys are being paid to swiftboat the people who are lobbying for a better life for actual 'working' people. These guys do not make $10 an hour.

By all means, visit 'paid critics' and get the Wal-Mart/Edelman viewpoint from a bunch of guys who you couldn't pay to set foot in a Wal-Mart store. Guy's that don't know the meaning of the word 'fair'. Then visit 'a bunch of greedy right wing liars who work for Wal-Mart' and find out what these guys have done in their past lives in the name of God, country and the almighty dollar.

UPDATE: See comments by Joe Trippi

Why does this blog look so much like a classic Swift-Boat attack? Probably because Wal-Mart has hired many of the same corporate and political operatives involved in past high-profile smear campaigns. Kevin Sheridan, a former spokesman and operative at the RNC, now works for Wal-Mart as consultant from Edelman PR. Terry Nelson, previously a Deputy Chief of Staff for the RNC and National Political Director for the Bush/Cheney 2004 campaign, is currently a strategy advisor for Working Families for Wal-Mart - the group officially behind paidcritics.com and fully funded by Wal-Mart. And then there’s Rick Berman and Bob McAdam, two men who worked hard for Big Tobacco to convince Americans that smoking is good for you. Now they work for or with Wal-Mart on its communications strategy.

Additional comments:
Fratpack
Scatterbox
Writing on the Wal

Sam Says:

“We still want to drive a hard bargain, but now we need to guard against abusing our power.” - Sam Walton

Maybe Wal-Mart abusing it's power is just a matter of opinion. But, I'm guessing many of those American factory employee's that are out of work might disagree. Is there any other way that Wal-Mart abuses it's power?

Wal-Mart's Pay Gap

Want to see how much Wal-Mart excutives make in comparison to overseas workers? Lookhere.

Wal-Mart claims it doesn't make enough money to pay it's workers better. But wouldn't it's 1.3 million employee's in the USA be able to purchase more 'stuff' from Wal-Mart if they were better paid? It worked for Henry Ford.

These Wal-Mart exec's are the 'rich outsiders'.

Sam says:

“Maybe the most important way in which we at Wal-Mart believe in giving something back is through our commitment to using the power of this enormous enterprise as a force for change.” - Sam Walton

How come Wal-Mart founder Sam Walton thought Wal-Mart could be a force for change yet current Wal-Mart supporters don't believe Wal-Mart has any power/responsibility for change? Any ideas on how Wal-Mart could use their enormous enterprise to institute change?