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Walmart Batting

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Battling Wal-Mart by Neal Peirce The Wal-Mart Watch campaign, a labor-environmental group highly critical of America's mega-mega retailer, recently launched more than 1,000 events nationwide for its "Higher Expectations Week." "Wal-Mart: The High Cost of Low Price," a scathing documentary by independent filmmaker Robert Greenwald with a focus on Wal-Mart's business tactics and treatment of workers, began to play to audiences across the country. Wal-Mart is fighting its critics with waves of television ads celebrating happy workers and the company's gifts to local charities. But the action goes much further. Across state capitals, legislators are into spirited debates over whether Wal-Mart should be forced to pay adequate health benefits …show more content…

While Wal-Mart fights aggressively to stop any union organizing whatever, Costco has agreements with the Teamsters for 16 percent of its employees and has extended most of the benefits to its entire workforce. A BusinessWeek analysis shows Costco's average hourly wage is $15.97, far above the Wal-Mart (Sam's Club) $11.52 figure, even excluding the 25 percent of Wal-Mart workers who are low-paid part-timers. The yearly employer contributions to health care -- Costco, $5,735; Wal-Mart, $3,500. Of Costco employees, 82 percent are covered by the health plan; Wal-Mart, 47 percent. Employee turnover at Wal-Mart is three times higher than Costco's. And then comes the clincher, suggesting the low-road approach may not be so clever after all: Costco's profit per employee is $13,647; Wal-Mart's, $11,039. Paying good wages and benefits, says Costco CEO Jim Sinegal, "is not altruistic; this is good business." Still, if history is any measure, it will take energetic union organizing to force Wal-Mart to shift tactics -- perhaps a replay of 1937, when a courageous Detroit sit-in strike by young women at Woolworth's, the dominant retailer of the day, sparked a string of nationwide victories and substantial pay increases. Wal-Mart Watch, though it was founded by Andy Stern, head of the Service Workers International, isn't quite ready to leap into an organizing fight. But if and when it's ready, look for a struggling that shapes

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