Wal-Mart Gets a Makeover So It Can Fight Economic Recovery

'Twas the night before Christmas when Wal-Mart told the world it decided to settle 63 lawsuits to the tune of as much as $640 million; most of those lawsuits alleged that Wal-Mart "underpaid its employees."

So what prompted the usually greedy Grinch to give more than half a billion dollars to its employees? It must've been a passing wind of Christmas Cheer, right? No.

The Wall Street Journal says one reason Wal-Mart paid out $640 million is because the world's largest retailer wants to improve its image ahead of its fight against the Employee Free Choice Act.  Wal-Mart appears to be afraid of that legislation because it would give employees the free choice to join unions and negotiate for better wages, benefits, and retirement security - something Wal-Mart employees certainly don't have now.

Here's what the Wall Street Journal said about the settlements:

But there may be something else going on. Remember the Employee Free Choice Act? [...]

Paul M. Secunda, an associate professor at Marquette University Law School, suggested Wal-Mart wanted to settle the lawsuits not just to avoid potentially more costly defeats in the courtroom, but to resolve issues that might be used to argue for passage of the Employee Free Choice Act. The legislation, expected to be considered by Congress next year, is fiercely opposed by Wal-Mart because the company worries it will make it easier for workers to unionize.

Wal-Mart is familiar with fighting the Employee Free Choice Act.  FEC complaints were filed against the company in August alleging that Wal-Mart told its employees to vote against Democrats such as now President-elect Barack Obama because of their support of the Employee Free Choice Act.  And current Wal-Mart CEO Lee Scott told reporters this fall why he's against the Employee Free Choice Act.  From the WSJ:

Card check is about power. Management has it, workers don't, and business doesn't want that to change. Consider the remarks made by Wal-Mart CEO Lee Scott at an analyst meeting on Oct. 28, when he was asked about the possible coming of [the Employee Free Choice Act]: "We like driving the car and we're not going to give the steering wheel to anybody but us."

But we will no longer get to enjoy the presence of Mr. Scott after February, as he is stepping down from leading the company in a surprise move announced just a month ago.  Long-time Wal-Mart operative Mike Duke will take over, giving Wal-Mart a fresh face to lead the company in 2009.  (And don't forget the company's brand new logo - goodbye smiley face, hello sunshine!)

Wal-Mart is evidently trying to spin a itself a new image before it faces President-elect Obama and our new Congress to fight this important piece of an economic recovery program.

The Employee Free Choice Act can help raise wages and extend health insurance and retirement security to millions of people.  The New York Times, in an editorial this morning supporting the Employee Free Choice Act, said the Employee Free Choice Act is "vital legislation":

The measure is vital legislation and should not be postponed. Even modest increases in the share of the unionized labor force push wages upward, because nonunion workplaces must keep up with unionized ones that collectively bargain for increases. By giving employees a bigger say in compensation issues, unions also help to establish corporate norms, the absence of which has contributed to unjustifiable disparities between executive pay and rank-and-file pay. [...]

There is a strong argument that the slack labor market of a recession actually makes unions all the more important. Without a united front, workers will have even less bargaining power in the recession than they had during the growth years of this decade, when they largely failed to get raises even as productivity and profits soared. If pay continues to lag, it will only prolong the downturn by inhibiting spending.

So now we have the world's largest employer fighting a "vital" piece of an economic recovery program, just to keep its employees making $10.32/hr - while its current CEO makes in excess of $16,000/hr. 

Even with CEO Lee Scott, $640 million in settlements, and the infamous Smiley logo going out the door with 2008, there's not enough lipstick sold at every Wal-Mart in the world to make this pig pretty.

Please join our campaign for the Employee Free Choice Act to help millions of working people in these tough economic times.

Follow Michael Whitney on Twitter: www.twitter.com/michaelwhitney

Comments

[RightWingMarine]

Since the EFCA will allow people to sign a petition to form a union instead of a secret ballot won't that lead to at least the risk of union intimidation of workers? Is it not possible that a union rep would tell someone to sign the petition or else their home would burn down?

[watchTVgetSTUPID]

WAlMart supports their Chinese suppliers in Court even when they are breaking the law. They spend the money to participate as "Amicus". WalMart and their suppliers are Traitors to America

[watchTVgetSTUPID]

I noticed WalMart has increased the differential price between their brand and competing brands like Del Monte. They did this by jacking up the price of the competing brands by another 20%. They will continue to squeeze all the competition including the suppliers until they have an unstoppable monopoly.

Then watch prices and profits soar

[benwha]

Del Monte's profit margins are over 14% compared to Walmarts at under 6%. Perhaps Del Monte could stand to become more competitive themselves???

[EinChicago]

Not to argue in defense of Wal-Mart, but why is it Huff Po has an article every day bashing their anti-union stancewhile having an article excusing or ignoring the same slimey tactics when used by Toyota? Keep up teh good work with articles like this, but let's also shine the same light on the sleazebags over at Honda, Toyota, Nissan, BMW and VW doing the exact same thing and paying off southern senators to act as their front.

[Truby]

If this company was really about helping us live better it would not have become the largest retailer in the world. This is just the best profit machine out there. No morals, no ideals, just profits.

[johncando]

do you read what you are saying,WalMart has given you China and cheep products to become this big. America has done the same to Honda Toyota and bashed unions for years because of their ability to give hard working Americans, what in fact we have earned .it is the Government that has failed to keep America viable ,by surpressing wages of the minimal! look now to Washington state and request all states get this wage and then stop the bitching about Unions .The fat cats in the senit and other seats sure get what ever is requested every year,it is no wonder the old guys dye holding onto their seat.

[jeffrey678]

The Democrats may not have the backbone to fight for working people. Especially the Country Club Senate.

[swiss-ski]

Wal Mart indeed needs a makeover. Let's start with those so-called lower prices for the "junk" you sell
from China, including the food products. Sam Walton is spinning in his grave because of the way you
un-educated clowns are running Wal-Mart. DISGRACEFUL!