Food for Thought
Published on July 6, 2005 By Pam Johnson In Current Events
Wal-Mart
Food For Thought

I am a Wal-Mart shopper. Now that does not mean I approve of how they do business or run their organization. It means I like their prices.

The union’s of this country are continually attempting to get Wal-Mart’s employees to join at least one of the unions, however, to date this as not happened.

So here is the questions:

1. If a union or unions prevail will we see a large up swing in prices from Wal-Mart?

2. Will the people working for Wal-Mart be better off then they are now (think about this question in the form of more money made, and better benefits)?

3. How will this effect prices throughout the world where there are Wal-Mart stores?

4. How will this effect the stores operations? (In other words will it effect customer relations, the ability to have enough checkers at the checkout stands, will they be able to maintain having a greeter at the door, and will there be someone who can ensure that all charts are picked up in a timely manner, etc.)

5. Is there a chance that some stores will have to be closed because of the monies now going out to employees? (Think of this questions in the terms of stores being closed in rural areas, and how it could effect those areas.)

One thing to think about is that if Wal-Mart closes rural area stores what would be the effect on employment along with the buying power that Wal-Mart may have brought to these areas.

Pam

Comments
on Jul 06, 2005
"1. If a union or unions prevail will we see a large up swing in prices from Wal-Mart?"


I'd have to say yes, though probably not so much that it hurts business. They might soak up a bit of it in profits, but they are the largest employer in the US. You can't expect for that many employees to get that much added to their benefits and salaries without it being passed on to shoppers.

"2. Will the people working for Wal-Mart be better off then they are now (think about this question in the form of more money made, and better benefits)?"


Some. Whatever deal they hack out will probably exclude 'temp' work, which they'll expand, and the unions themselves will soak up a lot of it, crooked organizations as they are. They'll have more benefits offered, but they won't be any cheaper than the benefits most other people pay, so most of them probably won't take advantage of it.

" 3. How will this effect prices throughout the world where there are Wal-Mart stores?"


Not sure how Wal-Mart does business in any other nation, or if their agreements here will be valid there in terms of unions. I'd say any nation that is effected the way we would be would get a similar result.

"4. How will this effect the stores operations? (In other words will it effect customer relations, the ability to have enough checkers at the checkout stands, will they be able to maintain having a greeter at the door, and will there be someone who can ensure that all charts are picked up in a timely manner, etc.)"


If I had to guess I'd say that small town stores would no longer go 24 hours a day. The greeter is a permanent fixture, but expect them to be part-time or temp workers that are excuded. As with any unionized workplace, I wouldn't expect the quality of service to go up, not in the least.

"5. Is there a chance that some stores will have to be closed because of the monies now going out to employees? (Think of this questions in the terms of stores being closed in rural areas, and how it could effect those areas.)"


Absolutely, though I see it coming regardless. My own relatively small city has three wal-marts. I wouldn't imagine they don't make a ton of profit compared to their operating costs, and if they have to cut into their profits some stores wouldn't remain profitable. They won't operate in the red, that's for sure.

"One thing to think about is that if Wal-Mart closes rural area stores what would be the effect on employment along with the buying power that Wal-Mart may have brought to these areas."


It would be devestating for small towns wherein all the mom&pop stores were run out of business by wal-mart. All the small stores in the mini-malls occupied by wal-mart would suffer since the traffic would instantly dwindle to nothing. Add to that the many employed people who would no longer have a job. I don't know how some non-industrial suburb communities would survive it.
on Jul 06, 2005
Bakerstreet:

Some good insightful points. I live in a small rural area in Idaho, and the Wal-Mart store there in a sense didn't close any mom & pop business (there were none), but it brought in jobs and as you indicated it encured the area around it to grow (fast food, Video Stores, Etc.). This in a way helped a area that was considered depress to show a little grow (though it is still considered depressed).

Thanks, Pam
on Jul 06, 2005
Have you considered the unfairness of competition when other supermarkets and discount stores are unionized or are more generous in benefits? Did you know that most Walmart employment is part or full time for second income households and that the spouse working for another corporation includes his or her Walmart spouse in the company's family medical insurance? 
on Jul 06, 2005
This wasn't meant to be a slam on Wal-Mart, nor was it meant to be an article on whether Wal-Mart is doing something to other stores. What I am looking for is what you the public thank would happen if Wal-Mart employees decided to go union, and how it would effect those who shop Wal-Mart along with the surrounding communities.

Pam
on Jul 07, 2005

Actually, a couple of their stores were unionized, albeit in Canada, not the US.  After trying to negotiate with the unions for several months, WalMart simply closed the stores.

I would expect to see the same thing occur if other stores were unionized.

on Jul 07, 2005
For the record...as to WalMart's "buying power"...once they've run the mom & pops out of time, WalMart drives their prices UP...they base the prices at their stores on the prices of their competitors...no competitors means they ask what they want for the goods.

I detest WalMart's business practices, having seen them from the inside, but will defend their right to do business as they see fit. If the American consumer's too blind to see what WalMart's doing, despite a boatload of publicity as to their actions, then we really deserve to fall victim to our own greed (my opinion). As to unions, no company should be forced to accept unionization, and, in fact, unions have become as bad as the big businesses they once alleged to try to fight.
on Jul 07, 2005
but will defend their right to do business as they see fit
But you don't apply this to unions, rather you blast them.
on Jul 07, 2005
"1. If a union or unions prevail will we see a large up swing in prices from Wal-Mart?"


NO, a small rise maybe, but a large corp. like wal-mart can absorb quite a bit, remember when Sam Walton was still alive and Wal-mart had all the "American Made" items? They were purchased in such quantites that the price was kept down. They will whine but the prices will stay low.

"2. Will the people working for Wal-Mart be better off then they are now (think about this question in the form of more money made, and better benefits)?"



Some what, The benifits probably won't change much from what they are now, but many of the internal practices such as "coulseling"(Geting written up) an employ if they go one tick over 40 hours ( even with permission). Also like bakerstreet said they will attempt to hire more temp and part time workers that won't be covered by the union contract and lower level management will reach farther down than it does now. essentially making the actual union workforce at any given store only your core checkers and stockers.

" 3. How will this effect prices throughout the world where there are Wal-Mart stores?"


It won't effect them much ( see answer to question 1)

"4. How will this effect the stores operations? (In other words will it effect customer relations, the ability to have enough checkers at the checkout stands, will they be able to maintain having a greeter at the door, and will there be someone who can ensure that all charts are picked up in a timely manner, etc.)"



Important jobs will be handled by union and lower level management ( cashiers, stocking, ect...) Greeters and cartpushers will be part time non union. My guess is that person to person relations would be better, though things like the carts might be another story because they will use temps and part timers...

"5. Is there a chance that some stores will have to be closed because of the monies now going out to employees? (Think of this questions in the terms of stores being closed in rural areas, and how it could effect those areas.)"


Probably not, Walmart does a good job of choosing where and how many stores to build, like her in Springfield, MO we have at least seven in the area, however anytime you go by day or night there are always customers there.

"One thing to think about is that if Wal-Mart closes rural area stores what would be the effect on employment along with the buying power that Wal-Mart may have brought to these areas."


Think about this if the wages at small town walmarts go up then the buying power of those employee's goes up and the wages paid by neiboring businesses also is forced to go up therefore raising everyones buying power, and that is where everyone wins.

Unions Set wage standards, not the goverments min. wage. If the local union's wages or benifits go up then the other business have to follow to keep their employee's from leaving or forming a union themselves.




on Jul 07, 2005

Reply By: stevendedalus             Posted: Thursday, July 07, 2005


but will defend their right to do business as they see fit


But you don't apply this to unions, rather you blast them.

I dont begrudge them that. But I think they have become the cancer that is killing the host.

on Jul 07, 2005
stephen,

my antipathy to the unions is based on the fact that many businesses have been FORCED into negotiating with them, rather than being allowed to make the choice; as well as personal experience.

As I detailed before, I worked in the mines in Death Valley California. As union members, we made $9 an hour, in a state where minimum wage is $6.75, in the most dangerous industry overall, according to OSHA statistics. We were not given the opportunity to meet with union representatives prior to the approval of the collective bargaining agreement, and any information that was disseminated was done so by the shop steward IN SPANISH to the Mexican workers. When we asked him to repeat the information in English, he refused.

This union also protected the fact that the majority of the mine's employees were illegal, and that they were handling heavy explosives (yes, the information was reported to both the INS and the BATF...neither of them would send anyone out to investigate).

By the way, this was no rinky dink union...it was Teamsters.

So, no, I DON'T think that the unions should be afforded government protections...they simply are NOT working in the interests of their members.
on Jul 07, 2005
" But you don't apply this to unions, rather you blast them."


And rightly so. The unions are validated methods of extortion, forged by organized crime, and perfected by their new, corporate-lifestyle managers.

Unions are about unions, and if the worker benefits, that's good, too. In a free market economy, profit is the point. If you can't profit from your business, you move on and profit from one you can. There's no reason to sit around and not make money. Unions, though, like to lobby and legislate and socialize that decision making process, and not for the overall good, but to line their coffers.

It's funny how people get up in arms about the government seizing private property, but tolerate big brother choking businesses to death, basically making the owners managers for labor and beurocracy.