Wednesday, November 16, 2005

Wal-Mart

I just finished watching a documentary on Wal-Mart, Wal-Mart: The High Cost of Low Prices. I wouldn't call it "eye-opening," but it did reveal a number of very important facts and information, all of which was presented together. The movie was well-done as a whole, and lacked the obnoxious voiceover narration that made Farenheit 9/11 such a hackjob. It was mainly composed of interviews and news reports, with only the occasional numerical interspersals. I won't review the film, however, but merely mention some of the sections they had and discuss them.

The film discussed the common issue of Wal-Mart moving into a town and crushing all the local businesses. What angered those interviewed
(many of whom were former store owners) most was that Wal-Mart got generous subsidies from local towns in order to entice them to move in, while the "Mom n' Pop" stores supposedly so valued were never given any subsidy.

What infuriated me most was that Wal-Mart underpaid its workers, and then promoted government services such as welfare, medicaid, and WIC to workers to make up for the gaps between pay and expenses. The average Wal-Mart worker made a little over $13,000 dollars a year, leaving a lot of need for assitance. In total, Wal-Mart workers cost taxpayers $1.6 billion in 2004 in government assitance alone. Meanwhile, the company makes over $1 billion in profit per quarter. The gall of the company to do this is absurd. However, the government does nothing at all about it; big business at its finest, I guess.

Why do Wal-Mart workers make only $13,000 a year? Because of two reasons: Wal-Mart does not pay its workers for any work past their alloted hours, and Wal-Mart aggressively breaks any attempt at union activity.

Wal-Mart makes it a condition of hiring that workers will do whatever they are told to do, even if doing the task will exceed their alloted hours. Furthermore, they will not be paid for this extra work - only their intended work. Workers cannot argue with this provision because the economy is so poor that many of them have to take whatever they are given, even if they are being ripped off. In Texas alone, it is estimated Wal-Mart has cheated workers out of $150 million dollars in unpaid labor.

Secondly, Wal-Mart aggressively hunts down union sympathizers. If a worker is even suspected of supporting unions, they can be fired. Wal-Mart maintains a fleet of jets (at a multi-million dollar cost) to send anti-union representatives out to "trouble spots" where employees have attempted to unionize. Without the ability to collectively bargain, workers are forced to take whatever is given to them, and often forced to spy on one another.

There were a number of other very interesting and troubling points made, but these were what struck me most. I would recommend the movie to anyone, especially those who shop at "The Empire."

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