AFL-CIO website on Wal-Mart

by | Oct 6, 2004 | Uncategorized

In their continuing drum-beat against the “Wal-Martization” of America, the AFL-CIO has launched a new website called walmartcostsyou.com. It is the usual litany of complaints about the world’s largest employer, especially that it pays sub-standard (i.e. less than the monopoly rents negotiated with unionized competitors) wages and that many of its “full-time” workers earn poverty-level wages. The statistics are VERY suspect – their wage claims compare 2001 wage “data” (anecdotal) with 2002 or 2003 poverty data, use single wage-earner for a family of three statistics and then extrapolate their numbers assuming that all Wal-Mart workers are in this category, and assume that all workers only work the minimum number of hours to be classified as “full-time” under Wal-Mart’s benefit eligibility rules. They also neglect to analyze how many current Wal-Mart workers would not have ANY job if it weren’t for Wal-Mart (I bet their analysis of the public welfare numbers wouldn’t look so great if this was taken into account). Wal-Mart’s average wage approaches $9 per hour. This is for stocking shelves and running cash registers. I know that the work is hard (I’ve worked for minimum wage stocking shelves and running a cash register) and it is probably very difficult to raise a family working in an entry level position for Wal-Mart. But honestly, if you don’t want to apply yourself just a little to advance into a higher level position at Wal-Mart, or in some other company in your area, is that Wal-Mart’s fault? The idea that an entry-level job at Wal-Mart (or any other fast food joint, retail store, etc.) should provide a “living-wage” (whatever that is) or some minimum standard of living is such a Beaver Cleaver view of the world that it is comical. It’s Wal-Mart for God’s sake. What I think would be criminal is making working at Wal-Mart so great that people would be satisfied with just stocking shelves for a career. Selling the idea that running a register or stocking shelves should be a “middle class” job is exactly what is wrong with the labor movement. Instead unions should go full-bore into the skills training business (think University of Phoenix) offering Wal-Mart workers the chance to educate and better themselves and their families working at jobs that are more highly valued by the market. As more and more of these people move up in the workforce Wal-Mart will have no choice but to raise wages and benefits to attract workers it needs to compete. That is a strategy that helps everyone. But unions aren’t really interested in helping workers – they are interested in helping themselves. So instead they grandstand, gripe and bully in an attempt to protect their current markets (unionized grocers and retailers) and in the hope of expanding into new markets (Wal-Mart workers). They sponsor ballot initiatives to keep Wal-Mart out of communities. But the vision they are trying to sell is just not compelling – the vast majority of Wal-Mart workers aren’t sitting around dreaming of the day their entry-level job stocking shelves or running a cash register punches their “ticket” to the middle class. The average American wants to perform well, advance to the next level and improve themselves and their families – which is why they will keep shopping at Wal-Mart.

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