Walmart, a boomerang

Walmart, a boomerang:

The Neo-Industrial Revolution

Walmart is of great controversies all over the world, and we can easily feel the heat when we type in ‘Walmart’ in Google or Youtube. Some nearly worship Walmart as their saviour for bringing in a lot of industries and giving great positive impact to many communities, while others are infuriated by the brutality of the company. In some of Youtube videos, Walmart employees express their anger by fierce demonstrations and creating provocative videos criticizing Walmart. The truth is, both sides are right; Walmart serves a function of a boomerang, as it seems to benefit citizens, but then people soon realize that Walmart creates a viscious cycle.

At first, after watching a Youtube video < When Walmart Comes to Town: ASuccess Story >, I was persuaded to believe that Walmart actually improves the lives of people for a moment. The video showed the complaints that the citizens of Chicago were making on lack of places to buy fresh vegetables and other materials. People were shouting, "We want Walmart so that we can have something more than some dollar stores…", and they were actually demonstrating to demand the establishment of Walmart in their town. In 2006, Chicago finally got what it wanted, and Walmart successfully fulfilled the needs of town people right away. First of all, Walmart boosted employment rate in Chicago. According to the video, statistics showed that 726 jobs were created, 298 were lost, as a result gaining 428 jobs total after the bringing in Walmart. Not only that, but also, since Walmart came in, it brought in 22 new businesses to the area, including the Bank of America, Chase bank, CVS, and Menards. As more and more businesses were coming in, Chicago kept on moving towards more economic development, also creating new streets and leading more population to Chicago. All of these make it seem plausible to support Walmart chains, as these things actually happened.

Now here’s the reality; after such seemingly-positive effects on a society, Walmart in turn exacerbates people’s lives and infuriates the employees by horrible treatments. According to a news article from REUTERS, called < Wal-Marttrims some U.S. health coverage >, Wal-MartStores Incorporation decided to no longer offer health insurance to newpart-time U.S. employees who work fewer than 24 hours a week and charge workerswho use tobacco more for coverage as healthcare costs rise. Most American businesses provide healthcare system for their employees, especially huge retailers with global chain system. Plus, the system is vital for most people, particularly those who work in Walmart, with such poor income and having nowhere else to go to earn money. Walmart simply reduces funds that are put into health care system only to produce more yields, but in the employees’ perspective, just a small reduction of funds will greatly deteriorate people’s lives.

Walmart’s atrocious acts are not only about health care systems; in fact, there exists other companies that do the same things. In an article < Wal-Mart: Merchantof Shame >, National Organization for Women (NOW) received complaints regarding workplace environment and employment practices, which include the following: sex discrimination in pay,promotion and compensation, wage abuse, exclusion of contraceptive coverage ininsurance plans, violations of child labor laws and the Americans withDisabilities Act, and discrimination on the basis of sexual orientation. Reacting to Walmart’s discrimination against women, Dukes filed a lawsuit on behalf of 1.5 million women employees, basing on extensive public records filed against Wal-Mart. However, the Judge of the case took Walmart’s side. Justice Antonin Scalia wrote, "Even ifevery single one of these accounts is true, that would not demonstrate that theentire company 'operate[s] under a general policy of discrimination …Respondents have identified no 'specific employment practice'--much less onethat ties all their 1.5 million claims together. Merely showing that Wal-Mart'spolicy of discretion has produced an overall sex-based disparity does notsuffice." Now we know that Wal-Mart is actually a bad company that disguises itself as a ‘revolutionary retailer’, and also came to know that Wal-Mart power is already so prevalent all over the world that even government compromises to Wal-Mart. This situation is similar to what’s happening in Korea, Samsung group ruling over the Korean government.

To sum up, Walmart seems to bring in a lot of things and give positive impact to many communities, but viewing Walmart in long term, the situation goes back to the original state, if not worse. In this way, I would describe Wal-Mart as industrialization, since industrialization also seemed to greatly improve the lives of people with no negative impact at all, but then people understood later that there are even more disadvantages than benefits. And also, as my title indicates: A BOOMERANG.

< Sources >

 “When Walmart Comes to Town: A Success Story”, Youtube, <http://www.youtube.com/watch?v=qdtcBiaflUQ&feature=player_embedded>

“Wal-Mart trims some U.S. health coverage”, REUTERS, Jessica Wohl  <http://www.reuters.com/article/2011/10/21/us-walmart-idUSTRE79K43Z20111021>

“Wal-Mart: Merchant of Shame”, National Organization for Women (NOW), <http://www.now.org/issues/wfw/wal-mart.html>

Sources I chose for my essay

POSITIVE IMPACT:

This video states that a lot of people from some communities actually wanted Walmart and are satisfied with what it brought with its emergence; huge industries, great increase of employment rate and activating the whole neighboring town overall.

NEGATIVE IMPACT #1:

News Article from REUTERS, < Wal-Mart trims some U.S. health coverage >

(Reuters) - Wal-Mart Stores Inc will no longer offer health insurance to new part-time U.S. employees who work fewer than 24 hours a week and will charge workers who use tobacco more for coverage as healthcare costs rise, the company said on Friday.

Wal-Mart, the largest U.S. retailer and the nation's largest private employer, is also slashing the amount that it puts in employees' healthcare expense accounts by 50 percent.

The changes, which affect U.S. associates who work for Walmart and Sam's Club, are being explained during the current fall enrollment period before they take effect in January.

Preventive care such as annual checkups remains fully covered. Wal-Mart will now provide $250 for associates to use for healthcare expenses that are not covered, down from $500, and will provide $500 for families, down from $1,000.

Those who use tobacco products will also pay more, with rates varying by the type of plan someone chooses.

"The current healthcare system is unsustainable for everyone and like other businesses we've had to make choices we wish we didn't have to make," said Wal-Mart spokesman Greg Rossiter. "Our country needs to find a way to reduce the cost of healthcare, particularly in this economy."

Wal-Mart said that it will continue to pay the majority of costs for its employees' healthcare.

Not all of the company's 1.4 million U.S. employees sign up for its healthcare plans. Wal-Mart said it currently insures more than 1 million people, including workers' family members.

Wal-Mart is not alone in looking for ways to cut spending on healthcare. Starting next year, Wells Fargo & Co will ask employees to fund their own medical expense accounts or choose to pay higher insurance premiums and have the company fund them, following the lead of companies such as General Electric that offer account-based healthcare plans.

A study last month by the Kaiser Family Foundation found that the average annual premium for family coverage through an employer increased 9 percent to $15,073 in 2011 from the year before. Since 2000, premiums have risen 134 percent.

Employers pay nearly three-quarters of that premium, a rate that has held fairly steady for the last 10 years, according to the foundation's data.

A Mercer survey found that health benefits costs on average will rise 5.4 percent in 2012, the smallest increase since 1997, because employers have been so aggressive about cutting these expenses.

WAL-MART'S CHANGING PLANS

At Wal-Mart, part-time associates become eligible for healthcare coverage after working for the chain for one year.

One of Wal-Mart's basic plans for an associate costs $15 per two-week pay period, or just over $1 per day. A tobacco user will now be charged an additional $10 per pay period.

Associates will use an honor system to say whether they use tobacco products.

Wal-Mart has offered part-time workers the option of signing up for healthcare coverage since 1996, regardless of how many hours per week worked. Now, part-time associates who work less than an average of 24 hours per week will no longer be eligible for the company's health insurance plans.

Those who were already eligible may still participate, even if they work fewer than 24 hours per week.

The changes were met with disappointment from some who have spoken out against Wal-Mart in the past.

"(Wal-Mart) may get away with these attacks on workers' rights in other parts of the country, but we won't stand for it in New York City," said New York City Council Speaker Christine Quinn, who has pushed to keep the chain out of New York City.

Those who work about 24 hours to 33 hours a week can still sign up for coverage for themselves and for their children.

Wal-Mart has not said what percentage of its U.S. associates work fewer than 24 hours a week. Those who work 34 hours a week or more are considered full-time associates.

Changes to the company's healthcare plans were first reported by the New York Times.

Shares of Wal-Mart were up 1.1 percent at $56.98 in afternoon trading on Friday.

(Corrects to show that part-time employees become eligible for healthcare coverage after working for one year, paragraph 13; also adds dropped word "in" to quote in paragraph 19, adds "of" instead of "on" in paragraph 19)

(Reporting by Maneesha Tiwari in Bangalore and Jessica Wohl in Chicago. Additional reporting by Rick Rothacker in Charlotte, North Carolina; Editing by Steve Orlofsky)

NEGATIVE IMPACT #2:

Wal-Mart: Merchant of Shame

Background: In the years leading up to naming Wal-Mart a Merchant of Shame, NOW leaders and members received numerous complaints regarding workplace environment and employment practices at the chain's retail stores and distribution centers, as well as its regional and corporate offices. NOW reviewed the extensive public record on cases filed against Wal-Mart and found the allegations disturbing. These included sex discrimination in pay, promotion and compensation, wage abuse, exclusion of contraceptive coverage in insurance plans, violations of child labor laws and the Americans with Disabilities Act, and discrimination on the basis of sexual orientation. Cases have also been filed regarding firing pro-union workers, eliminating jobs once workers joined unions, and discouraging workers from unionizing.In 2002, the National Organization for Women named Wal-Mart a Merchant of Shame as part of its Women Friendly Workplace Campaign. Wal-Mart's dismal record contradicts the worker-friendly image it projects to the public. Join NOW in its campaign to demand changes in Wal-Mart's unfair practices.

In the wake of Wal-Mart v. Dukes -- the largest class action lawsuit in U.S. history, filed on behalf of 1.5 million women employees who were discriminated against while working for the retail giant -- NOW will continue to fight to bring justice to these women. The Supreme Court heard the case, which included 120 affidavits relating to 235 stores, and ruled that "[e]ven if every single one of these accounts is true, that would not demonstrate that the entire company 'operate[s] under a general policy of discrimination.'" Essentially, the Roberts Court declared Wal-Mart too big to sue and women as a group not worthy of class action status.

NOW is partnering with United Food and Commercial Workers (UFCW) and other leaders from the women's movement and labor movement to support the Making Change at Wal-Mart Campaign, which aims to transform the nation's largest employer into a good employer. Read on for more about NOW's efforts to get Wal-Mart to clean up its act.

Wal-Mart v. Dukes: A Failure of the Supreme Court

October 5, 2011

Wal-Mart v. Dukes was the largest class action lawsuit ever filed in the U.S., representing as many as 1.5 million women associates who were systematically discriminated against by the retail giant on the basis of sex in determining pay and promotions.

In a 5-4 Supreme Court opinion revoking the right of underpaid women associates to sue as a class, the Roberts Court declared Wal-Mart too big to sue and claimed a lack of commonality among the plaintiffs.

The facts pose no question as to whether Wal-Mart discriminates against women. An analysis conducted for the lawsuit showed that women employees were paid five to 15 percent less than men in similar positions, even after taking into account factors including seniority and performance.

Justice Antonin Scalia wrote, "Even if every single one of these accounts is true, that would not demonstrate that the entire company 'operate[s] under a general policy of discrimination … Respondents have identified no 'specific employment practice'--much less one that ties all their 1.5 million claims together. Merely showing that Wal-Mart's policy of discretion has produced an overall sex-based disparity does not suffice."

Penning the minority opinion, Justice Ruth Bader Ginsburg wrote, "Wal-Mart's delegation of discretion over pay and promotions is a policy uniform throughout all stores … A system of delegated discretion … is a practice actionable … when it produces discriminatory outcomes."

In the wake of Wal-Mart v. Dukes, NOW calls on women's rights activists and supporters around the country to support legislative and worker-led remedies that will support justice for women associates:

First, holding Congress accountable to passing a Paycheck Fairness Act, which will provide more effective remedies to victims of sex-based wage discrimination.

Second, supporting unions and in particular the associate-led Organization United for Respect at Wal-Mart (OUR Wal-Mart). Women workers in unions earn 11.2 percent more, or $2.00 more per hour, than non-union women workers, and the gender wage gap is smaller in unionized workplaces.

NOW also reaffirms Wal-Mart as a "Merchant of Shame" as part of its Women-Friendly Workplace Campaign. NOW chapters continue to lead countless community demonstrations at Wal-Mart stores around the country to educate shoppers about Wal-Mart's exploitation of women.