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May 06, 2005more walton empire shiti know i'm just goin round and round here but i can't stop its like the gillions of hacked up clip-ings of john lenon on that wacho that shot him's toilet seat ================================================== With most of Wal-Mart's workers earning less than $19,000 a year a number of community groups and lawmakers have recently teamed up with labor unions in mounting an intensive campaign aimed at prodding Wal-Mart into paying its 1.3 million employees higher wages "Wal-Mart is doing the polar opposite of Henry Ford Wal-Mart brags about how its low prices help poor Americans but its low wages are helping increase the number of Americans in poverty. Is It a Living? retailers with narrow profit margins face a different competitive situation and cannot afford to be as generous to their workers as automakers and other capital-intensive companies. Many of those assailing Wal-Mart argue that the company can and should, pay its workers at least $2 more an hour and add $1 or $2 an hour beyond that to improve its health benefits A Harvard Business School study found that Wal-Mart paid $3,500 a year for each employee for health care while the typical American corporation paid $5,600. If Wal-Mart spent $3.50 an hour more for wages and benefits of its full-time employees that would cost the company about $6.5 billion a year At less than 3 percent of its sales in the United States critics say Wal-Mart could absorb these costs by slightly raising its prices or accepting somewhat lower profits Wal-Mart had a profit margin on sales last year of around 3.5 percent. ( $10 billion in profit on about $288 billion in sales) Wal-Mart argues that, as retailing companies go it treats its workers better than average It says 74 percent of its employees work full time compared with fewer than 40 percent at many other retailers But critics note that a leading competitor Costco, pays $16 an hour - 65 percent more than the average wage at Wal-Mart stores and 33 percent more than the $12 average at its Sam's Club stores At Costco, 82 percent of the workers are covered by company health insurance compared with 48 percent at Wal-Mart "Retail has always paid poorly and it probably always will," "Wal-Mart has a responsibility to serve their customers to give them a good product and to their shareholders They don't have a responsibility to society to pay a higher wage than the law says you have to pay." "Wal-Mart's turnover will be close to half a million workers this year, " "By paying higher wages Wal-Mart will make its employees happier and will reduce turnover A lot of its new workers don't know where to stock things Higher wages will mean more productivity per person and that should help raise profits." A new group of Wal-Mart critics ran a full-page advertisement on April 20 contending that the company's low pay had forced tens of thousands of its workers to resort to food stamps and Medicaid costing taxpayers billions of dollars in a book to be published this fall a group of scholars will argue that Wal-Mart Stores having replaced General Motors as the nation's largest company has an obligation to treat its employees better. Among workers at Wal-Mart's 3,700 stores across the United States the debate is also heating up. Labor groups and their allies are focusing on Wal-Mart because they say that the campaign will not just benefit its workers but also reduce the existing pressure on unionized competitors to reduce their own wages and benefits. "Wal-Mart should pay people at a minimum enough to go above the U.S. poverty line," "A company this big and this wealthy has the ability to pay higher wages." Wal-Mart says its full-time workers average $9.68 an hour and with many of them working 35 hours a week their annual pay comes to around $17,600 . That is below the $19,157 poverty line for a family of four but above the $15,219 line for a family of three. Wal-Mart critics often note that corporations like Ford and G.M. led a race to the top, providing high wages and generous benefits that other companies emulated. They ask whyPosted by herb jr. jr. at May 6, 2005 02:01 PM Comments
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