More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Al Norman

GET UPDATES FROM Al Norman
 

Occupy Wall-Mart: Save America. Live Better.

Posted: 12/05/11 11:53 AM ET

If there is a teaching moment for economic injustice -- Wal-Mart is it.

This enormous corporation has been built upon the backs of the 99% -- the 1.4 million American workers who have been exploited for 50 years to produce the richest family in the United States: the Walton heirs.

The encampments against corporate greed in the financial districts of America could just as well have appeared outside of Wal-Mart headquarters in Bentonville, Arkansas. There is no better example of corporate exploitation in the world.

Who are the Wal-Mart 99%? The temp workers at a Wal-Mart distribution center in Elwood, Illinois who are suing the corporation for 'wage theft.' The hundreds of thousands of female Wal-Mart 'associates' who filed the largest class action gender discrimination lawsuit in history. The Wal-Mart workers who traveled recently to Bentonville with a "Declaration of Respect" seeking affordable health care and predictable work schedules. The 2,500 Bangladeshi women at the Anowara Apparels factory who are paid less than two cents for each pair of Wal-Mart jeans they sew. These are the people who have created the Wal-Mart 1%.

One of Wal-Mart's best-known 1%ers is former CEO, H. Lee Scott, who retired in 2009 at age 62. Scott's compensation that year -- counting his salary, bonus, restricted stock awards, options awards, non-equity incentive plan compensation, change in pension value and nonqualified deferred compensation earnings -- came to $30.2 million, or roughly $14,464 an hour. If H. Lee Scott came to work at 9:00 AM on a Monday morning, by 10:15 AM he had earned as much as one of his workers on the sales floor would earn in a year.

Ironically, it was during H. Lee Scott's tenure that Wal-Mart developed a manual of Standards for Suppliers which insists that Wal-Mart's vendor factories should honor a workers' "Freedom of Association: they must not impose any punitive actions against workers in supporting a union such as threatening, fining, suspending or firing workers exercising those rights. Any action that suppresses freedom of association is prohibited..."

This is the same company that has been sued repeatedly for violations of labor laws, and which has aggressively fought local union organizing efforts in its American stores. "Theoretically, I understand the argument that unions try to make," Sam Walton wrote in his autobiography, "and that associates need someone to represent them... But historically, as unions have developed in this country, they have been mostly divisive. They have put management on one side of the fence, employees on the other, and themselves in the middle as almost a separate business, one that depends on division between the other two camps."

Walton's worry was that if there were divisiveness in the worker camp, it would "make it harder... to be competitive, and to gain market share." Everything came down to market share. He noted that any time workers were clamoring for a union, "it's because management has done a lousy job of managing and working with their people." He said if Wal-Mart management involved its workers, "you won't spend all your time and money hiring labor lawyers to fight the union."

Wal-Mart today clearly is doing a lousy job of involving its workers, because it has spent a fortune on union-busting law firms and consultants -- including a nation-wide "labor-relations" campaign to convince its 99% workforce to oppose the Employee Free Choice Act in Congress.

When Wal-Mart announced in October of 2011 a series of cutbacks in its employee health benefits, the 'worker camp' was caught by surprise. "Over the last few years, we've all seen our health care rates increase and it's probably not a surprise that this year will be no different," a Wal-Mart spokesman said. "We made the difficult decision to raise rates that will affect our associates' medical costs. The decisions made were not easy, but they strike a balance between managing costs and providing quality care and coverage." But the company's "difficult decision" was a lot easier to make, because the workers had no seat at the table. This is why workers in the "99% camp" are angry at the corporate power that affects their well-being. How are they supposed to "live better" when they have no say at all in their own working conditions?

The company's justification for this massive exploitation of workers is that it helps 99% of consumers to buy cheap foreign-made goods. Wal-Mart's future depends on the premise that the typical lower middle class consumer's belief in economic justice is no deeper than the dimensions of his or her own shopping cart. But the 99% consumers are beginning to realize that companies like Wal-Mart have played a major role in the loss of 6 million U.S. manufacturing jobs since 2000, and the huge trade deficit with China. Wal-Mart needs a ready supply of poverty-level workers to survive, and the shrinking middle class feeds that monster.

Over the years, there have been many attempts by Wal-Mart shareholders to force the company to do a better job of taking care of the 99% of the people who create the corporation's wealth. None of these shareholders resolutions were adopted, because Walton Enterprises owns 1.68 billion (43%) of the common shares of Wal-Mart stock. Voting members of Walton Enterprises include S. Robson Walton, Jim C. Walton, Alice L. Walton, and the John T. Walton Estate Trust--the family symbol of 1% America.

An encampment by the 99% is sorely needed in Bentonville, because democratization of Wal-Mart's workplace will never happen on its own. Chief among the reforms of this giant corporation would be:

  • Grant workers the right to freely associate and form unions
  • End lobbying against the Employee Free Choice Act
  • Link executive compensation to efforts to narrow the disparity between the wage of hourly workers and top management
  • Set procurement goals that proactively substitute American-made products for foreign imports, reducing reliance on outsourced goods.
  • Publish an annual report of political contributions and an accounting of Wal-Mart funds used for political contributions or expenditures.
  • Add at least 3 hourly employees to the board of directors of the corporation


The beauty of an Occupy Wall-Mart movement is its accessibility to grassroots America. Occupy could take place at any of the company's 4,400 retail stores in the U.S. The company is ripe for neighborhood efforts to trim corporate power, and assert the needs of the 99% who work or shop there.

In Wal-Mart's case, fighting for economic justice is as close as your next shopping trip.

Al Norman is the founder of Sprawl-Busters. He has been helping community groups fight big box sprawl since 1993. His most recent book is called "The Case Against Wal-Mart."

 
 
 
 
 
  • Comments
  • 209
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2 3 4  Next ›  Last »  (4 total)
09:59 PM on 12/07/2011
occupy the parking lot of wal-mart and boycott the store, demand just wages and the right to form a union.
photo
wtaylorhi
Web Entrepreneur
08:53 PM on 12/06/2011
I dislike Walmart! For all the reasons you pointed out plus some more. They definitely make enough money to pay their workers more than what they do.
photo
HUFFPOST SUPER USER
Jerry Bourbon
05:05 PM on 12/06/2011
19 MILLION people a day are occupying Wal Mart today. And every day.

Buying stuff...
photo
HUFFPOST SUPER USER
den1953
The best politicians are for free!
10:30 AM on 12/06/2011
What really needs to happen is have OWS contact the Chinese workers that are being exploited for cheap labor at the expense of WalMart and other Corporations in America for charging Americans more for the Chinese companies goods that go into the Corporations pocket rather then treat the workers in China equal!
01:00 AM on 12/06/2011
Walmart has a history of caring only about its bottom line. It projects a corporate image of altruism, while maintaining a less-than-stellar track record in the treatment of both its employees and the local community. This is evident in the recent sham where Walmart placed more restrictions on it employees' healthcare benefits, foisting the extra healthcare costs for Walmart employees on the taxpayers. Walmart makes billions of dollars in profit a year, so Walmart is more than capable of absorbing these extra healthcare costs.

If Walmart really wanted to change its spots, for the betterment of society, it surely could. Al’s idea for allowing the 99-percent to have a say at the table with the 1-percent who want to be more wealthy, would surely be a step in the right direction. Perhaps, we would see a shift towards more equitable corporate behavior.
12:06 AM on 12/06/2011
Soooooo, let me get this straight. What you are saying is that you and anyone else who wants to be delusional and agree with you, thinks that citizens have the right to dictate to a private corporation what to pay their executives, how to compensate their workers and all your other reforms you are demanding? Wow, did I just wake up from a nap and find myself in a different country? Come on, tell me you're just joking.

You also imply that everyone that has ever bought anything from WalMart is complicit in causing the loss of jobs and our poor economic conditions. Again, please tell me you're joking.

And one more thing. No one that works at WalMart is being held hostage at work. Seems to me that if they don't like the working conditions, that can find another place to work. I want to know who's FORCING the workers to work at WalMart?

And one more thing. Between WalMart's corporate giving and the Walton family members, more than $1 billion was given to charities in 2009. That doesn't sound like the Evil Empire to me. Just thought you'd like to know...
07:39 AM on 12/06/2011
Yes, you have woken up in another country.

The one you used to inhabit was BC---before the Occupation. The dominance of corporations over their workers, over the environment, over our politics, has to change

In the BC world, corporations did evil and tried to atone for it by loudly giving money to charity. But in the new Occupied Country, corporations are expected to good by their workers, period.
11:43 AM on 12/06/2011
The only Wal-Mart employees that should be sitting at the table with the Wal-Mart 1% are the ones who deserve a promotion for performing above and beyond expectations while on the job.
itolduso
lateral thinker
11:37 AM on 12/06/2011
Let me get this straight. You are saying you have no problem with a Mega-Corp dictating to it's suppliers that each year it must lower the costs of it's products - a downward pressure that forces many to introduce dangerous chemicals and materials in desperate attempts to meet their demands. You have no problem with a Mega-Corp given preferential incentives and tax breaks to open in your community, offer unfair competition to local small businesses, and pay it's workers so little that they qualify for medicaid and food stamps. Enjoy your cheap products - your whole community is paying for them.
11:36 PM on 12/05/2011
And you forgot that Wal-Mart goes into the street to round up customers at gunpoint every morning, and pushes them down the aisles forcing them to buy things they don't need, at twice the fair market value. Wal-Mart customers are the helpless victims of capitalist coercion of offering a lower price to people who don't know how much better it is to pay more for everything.

Look, if you want to find fault with Wal-Mart, try anti-trust issues. You can't blame anybody for giving people what they want.
04:32 PM on 12/06/2011
I most surely can blame corporations for exploiting their workers, their vendors, and the public---- flooding the market with inferior products, laying waste to our manufacturing sector, and leaving behind nothing but a residue of less-than-subsistence jobs that require public subsidies for health and earned income tax breaks. Blame the ostentatious wealth of the 1% for having aroused the anger of the 99%. People who cannot find decent paying jobs are key to Wal-Mart's future. These are the workers who out of desperation turn to poverty level jobs, and who are now talking back to the company and asking for a larger piece of the action. The cheap products that Wal-Mart stuffs into endcaps are just the shiny trinkets the merchant scatters about hoping to quiet the unrest and distract people from the grind of their own daily impoverishment.
04:57 PM on 12/06/2011
OK, let's hear it. What's your cause of action, or what is your legislative remedy?

Which "corporation" are you blaming? Or do you want to get more explicit? Or is it just fun to vent?

"Exploitation" is a matter of opinion. What I am saying here is that you have to recognize the complicity of the consumer, and your own benefit, and the benefit of others whose tastes are different than yours. Enough of your neighbors benefit from WalMart that you may well find yourself outvoted.

Envy is not a legal or moral cause. Do you think you have a basis for an anti-trust action?

What you can blame them for IMHO is poor management, and this is less directed at Wal-Mart than an amorphous problem - you have financial industries (and every organization has a financial aspect) that compete with each other, and lobby on behalf of their industry and individual benefit, rather than their general community; and politicians are also competitive, and are more worried about quarterly results than annual ones, and that also is an indirect result of anti-trust rules - the industry cannot sit down and divvy things up.

I suspect the most immediate solutions are to limit corporate rights in proportion to liability, and try to limit the influence of money and lobbying in politics. That is very hard, since it's really more a matter of balance.
11:04 PM on 12/05/2011
And somehow Alice Walton thinks that making her Crystal Bridges art museum free to the public will make up for cheating Walmart workers for decades...
This user has chosen to opt out of the Badges program
photo
SocratesSiddhartha
"Poverty is the worst form of violence." Gandhi
photo
HUFFPOST SUPER USER
seatheworld1
your duty is to accept me/my duty to tolerate you
09:05 PM on 12/05/2011
60 billion a month trade deficit with China, Thanks Wal Mart...Sam Walton is turning in his grave.
photo
HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
07:08 PM on 12/05/2011
People are occupying Wal-Mart, over 19 million per day.
Thanks to Wal-Mart, people have jobs to go to, they have money to buy products, cheap products from places like Wal-Mart. The people who manufacture products have jobs because Wal-Mart purchases them.
Shipping companies can hire sailors and build boats and containers thanks to Wal-Mart. Dock workers, truck drivers have more work because of the value Wal-Mart delivers.
The most economical place to buy prescription eyewear and generic medication is Walmart.
The largest buyer of farm produce in the world is Walmart. I buy things at Walmart because they are less expensive. I then have more money to invest, give to charity or save.
Walmart makes life better for everyone involved, they lower prices so your money will buy more.
People freely choose to buy from and work at Walmart. When another company can deliver goods at a better value, they will be free to choose them as well.
08:01 PM on 12/05/2011
Well said. I've yet to meet the Wal-Mart worker who is unhappy with the employer.
rixter1965
I'll respect your beliefs, but at least be consist
08:13 PM on 12/05/2011
Awesome. Proved the point of the article.

You have the ability to buy wherever and whenever you want. You also have the choice to do those things thinking about what that means. That's the whole point of economic freedom. So your receipt is a bit less and yet no worries about what that means. So much for the informed electorate and populace in which our Founders had such great faith.
photo
HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
10:05 PM on 12/05/2011
The receipt is less at Walmart most of the time, leaving you purchasing power. This freedom via efficiency now allows you to support anything you choose with the excess. You now have options to better society, invest in yourself, your fellow man, your home or community. the division of labor and capitalism is to be embraced, these are responsible for all prosperity and the health of the human race.
photo
GravitonX
10^300 bosons could care less.
06:36 PM on 12/05/2011
"Occupy Wall-Mart"

This is a perfect example of the movement completely losing control of it's message.
09:47 AM on 12/06/2011
Yup, that's what I was thinking, too.
06:35 PM on 12/05/2011
ROTFLMFAO!!!!!

It is apparent that Mr Norman has no clue about Walmart. My wife has worked there for over 4 years. She works part-time and gets between 30-36 hours/week. She makes over $10/hour, gets a $1/hour bonus for working Sundays, and got paid an extra 5 hours as a paid holiday for working Thanksgiving. She has gotten 5 raises in pay in the past 4 years. Which is 4 more raises than I have gotten working full time for the State of West Virginia for Human Resources. She is on my insurance. She pays into Walmart stock and pays into the 401(k), Just shut the frac up about Walmart.
08:01 PM on 12/05/2011
Don't spoil the narative with the facts.
05:53 PM on 12/05/2011
Buy less stuff, buy it at smaller stores where people are paid reasonably. Wal Mart is too big to hire managers who care about their workers, as Mr. Walton suggests would eliminate the need for unions.
This user has chosen to opt out of the Badges program
photo
ronkw
Wake up and smell the whiskey
05:32 PM on 12/05/2011
Author fails to mention and alternative.

What do you suggest the thousands/ millions of daily W-shoppers, that choose btw to shop there, what would you like to see in it's place. And who or what is going to build it?
06:54 PM on 12/05/2011
I have never shopped at Wal-Mart, so I know that there is life sans big box. In fact, I feel better for it, because I am not subsidizing their exploitation. Wal-Mart shoppers can gradually wean themselves of the addiction to Chinese imports. There are plenty of vendors that sell American made products---and there are plenty of local alternatives for groceries. Right now, Wal-Mart is counting on food sales to lift their stores, because much of the rest of their sales are flat. The "occupy" demands for economic justice means telling the corporation they need to aim higher to get your business. The business model they use is morally repugnant, and it will only be pressure from the outside---and from its own disgruntled workers---that changes the paradigm. Part of what has crippled our economy is the disinvestment in manufacturing caused by outsourcing to other countries. It's time for Wal-Mart to work aggressively to bring the dollars back home and create domestic jobs.
11:37 PM on 12/05/2011
Maybe you should try it, for the sake of the experience, eh?