May 2, 2007
In an effort to hold the world’s largest retailer accountable, several representatives of organizations in about 30 cities issued a call to action during a teleconference where Wal-Mart was called on the carpet.
Months later, the critics of the retailer say nothing has changed. During a poverty summit at Friendship-West Baptist Church, keynote speaker Father Michael Pfleger, of Chicago’s Faith Community of St. Sabina the Wal-Mart has to do a better job of providing livable wages and benefits.
His charges are in line with those of representatives of at least 10 organizations accusing Wal-Mart of “heavy-handed tactics” that included targeting areas and moving in to provide lower costs.
It was clear they felt Wal-Mart has not been a good corporate citizen.
Some might say that consumers benefit from the low prices, but critics say that with the low costs comes low-paying jobs with minimal benefits.
“Wal-Mart’s corporate strategy devalues citizens,” said Rev. Eric P. Lee, Executive Director, Southern Christian Leadership Conference of Greater Los Angeles. “Wal-Mart must stop undermining and disrespecting minority communities.”
Tracy Gray-Barkan, Director of Retail Policy and Senior Research Analyst, Los Angeles Alliance for a New Economy, said the group has been speaking out and is becoming more aggressive with its message because Wal-Mart “has saturated rural areas and is looking to go into urban areas.”
Unlike other retailers, however, the opportunity to earn livable wages and have access to affordable benefits continues to be an issue. In fact, in someareas, Wal-Mart employees receive information on public assistance for benefits, instead of benefits provided by the company.
This is unacceptable, said State Sen. Gilbert Cedillo (CA). “Given their success, mag-nitude in the world, I have to object to Wal-Mart’s strategies,” he said, as he discussed California Senate’s efforts to mandate that employers, like Wal-Mart, provide healthcare for employees regardless of their status.
“Low wages and minimum benefits are unacceptable to us.”
Citing massive profits, many said Wal-Mart has to change its ways.
“Wal-Mart has become our lunch counter moment,” said Lennox Yearwood, referencing the civil rights demonstrations of the 1960s. “It’s time for an opportunity rights movement. Wal-Mart is slashing a number of full-time jobs. Our communities deserve good jobs.”
He said he was speaking for the Hip Hop generation, which he referred to as the “dream generation” —those born after 1964. Many youth, he said are choosing Wal-Mart or War. If they choose Wal-Mart, he added, they should be able to work and not have to look to the military to make livable wages.
Despite criticism of Wal-Mart, there are communities that welcome the stores into their neighborhoods. For smaller towns, despite the vanishing smaller “mom and pop” stores, Wal-Mart has its supporters.
Many, however, says critics are choosing a bad job over no job at all. “They (Wal-Mart) come in as if to be the saviors,” said Steven Pipps.
Adrian Shopshire would like to see Wal-Mart use money in other places than lawyers or for advertising. “Wal-Mart in New York City is no different,” he said. “They provide non family sustaining jobs and never pay their fair share of health costs.”
LAANE has tried going the legal route and in some instances, they say they’ve met with strong opposition.
“Wal-Mart spent as much money as possible to have a Wal-Mart friendly council in Inglewood,” said California businessman Gil Matthieu, adding that Wal-Mart is heavily involved in the political process as they try to impact legislation that may not be favorable to them.
After repeated attempts, Wal-Mart officials declined com-ment but referred all queries to published statements of their efforts. This, despite earlier meetings with representatives who expressed a desire to be more responsive to the communities they serve.
Last week, Wal-Mart made headlines with the passing of Helen Robson Walton, widow of Wal-Mart Stores, Inc. foun-der Sam Walton, who died in her Bentonville home of natural causes, and the announcement that Wal-Mart intends to contract with local hospitals and other organizations to open up to 2,000 clinics in stores within the next seven years.
Speaking to the World Health Care Congress, Wal-Mart president and CEO Lee Scott said Wal-Mart hopes to “implement customer solutions to America’s health care crisis.”
“We think the clinics will be a great opportunity for our business. But most importantly, they are going to provide something our customers and communities desperately need – affordable access at the local level to quality health care,” Mr. Scott said.
In his speech, Mr. Lee announced that nearly $300 million is what customers saved since September of last year when they began making select generic drugs available for $4.
While he says Wal-Mart expects to have about 400 clinics in the next three years, there are currently 76 operating in 12 states and managed by local and regional hospitals.
“We know that customers like and want these clinics. At existing clinics in our stores, about 90 percent of patients report being satisfied or very satisfied. They appreciate the fast, easy and convenient experience,” Mr. Scott explained.
Healthcare is one of the primary concerns according to LAANE. The impact of the clinics, their placement and services provided will determine their success. Mr. Scott said company surveys in the “existing clinics revealed more than half of those who visited a clinic said they were uninsured.”
According to Father Pfleger, it would be a shame for Wal-Mart employees to be without benefits.
Cheryl can be reached at csmith@dallasweekly.com
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