Skip to Content, Navigation, or Footer.
The Eagle
Delivering American University's news and views since 1925
Friday, May 17, 2024
The Eagle

Wal-Mart challenged by union, Md. health care bill

The United Food and Commercial Workers International Union launched a grass-roots movement on April 5 to raise awareness about Wal-Mart's business practices, a senior adviser of the union said.

About 45,000 people have already joined the Internet-based campaign, said Chris Kofinis, senior adviser for the union.

Kofinis said this is the next phase of an effort the union is leading against Wal-Mart. On April 8, the UFCW called for the retailer to release all documents connected to accusations that Tom Coughlin, Wal-Mart's former vice chairman, took $100,000 to $500,000 through expense account abuses to use for anti-union activities, according to The Washington Post.

Wal-Mart has refused to turn over the documents, and the UFCW has filed unfair labor practice charges against the company, said Jim Papian, a spokesman for the union.

Christi Gallagher, a spokeswoman for Wal-Mart, said in an e-mail that the UFCW's claims are unfounded and unsubstantiated.

"It's the equivalent of throwing a 'Hail Mary' pass," she said. "The UFCW is simply going to file the wildest of charges and see if it gets any attention."

Though Wal-Mart is the world's largest retailer, its employees seek the most state-funded medical insurance, Papian said, which taxpayers pay for.

"We have a serious health-care crisis in this country," he said.

Maryland lawmakers approved legislation April 5 that would require organizations with more than 10,000 employees to use at least 8 percent of their payroll to pay for health benefits or put the money into the state's health program for the poor.

The bill specifically targets Wal-Mart and does not address making health care affordable to everyone, Gallagher said.

"This bill is not trying to solve health care problems for Marylanders - it is trying to help the union run and Maryland-based grocer Giant become more competitive and provide a stepping stone for UFCW's anti-Wal-Mart campaign," she said. Gallagher described this campaign as "full of mistruths when you consider the 15,000 good paying jobs Wal-Mart offers Maryland"

Howard Wachtel, an AU professor of economics, said 10 to 12 percent of payroll is the usual amout companies that size spend on employee health care.

"It would not affect very much their financial condition," he said. "It's more symbolic," showing that the state has expectations of large retailers.

If Wal-Mart opted to put the money in the state's program, it would probably be used for Medicaid funding, and not specifically for Wal-Mart employees, Wachtel said.

Barbara Bird, chairwoman of AU's management department in the Kogod School of Business, said the culture of Wal-Mart has changed since the company's founder, Sam Walton, died. The company's leaders have become more concerned with saving every penny possible to make a marginal profit than providing good wages and benefits for their employees, she said.

"They have to be a low-margin business because they squeeze their suppliers and squeeze their employees," Bird said.

Gallagher said the company monitors market prices to ensure the lowest prices possible.

"We feel that competition is healthy and always benefits the customer," she said.

Comparable stores are affected by Wal-Mart because they must closely match prices, regardless of whether they are unionized or not, Wachtel said.

It is not impossible for Wal-Mart to have positive relationships with unions because other businesses have good relations with unionized employees, Bird said. However, unions cost businesses money through contract negotiations and wage increases, she said, and businesses want a flexible work force.

For such a socially conscious campus like AU, issues like this are quick to lead to debate.

Anna Finn, a freshman in the College of Arts and Sciences, said she shops at Wal-Mart at least twice a week when she is home.

"They do offer the best price and a fairly high-quality product," she said.

Wal-Mart also hires the elderly and the mentally disabled, so the store does help communities, she said.

However, Finn said she thinks Wal-Mart creates "over-consumerism" in America by heavily advertising how much someone can buy at the store at low prices.

Jess Smouse, a sophomore in the School of International Service, said she rarely shops at Wal-Mart because its products are cheaply made.

"You can buy better-quality stuff in different areas if you know how to shop," she said.

Smouse said unfair treatment of women at Wal-Marts also influenced her decision to avoid shopping there whenever possible. However, she said she would shop there if it were the cheapest and closest store that had what she needed.


Section 202 host Gabrielle and friends go over some sports that aren’t in the sports media spotlight often, and review some sports based on their difficulty to play. 



Powered by Solutions by The State News
All Content © 2024 The Eagle, American Unversity Student Media