Women, Labor Women, Labor Exploitation & Wal-MartExploitation & Wal-Mart

ThesisThesis

Wal-Mart's demoralizing labor law Wal-Mart's demoralizing labor law practices have developed an exploitation practices have developed an exploitation of its workforce, predominantly of its workforce, predominantly undermining women’s patriotic rights. undermining women’s patriotic rights.

Comparative AdvantageComparative Advantage “One Nation under Wal-Mart”“One Nation under Wal-Mart”

The famous Wal-Mart is ranked by its revenues as the The famous Wal-Mart is ranked by its revenues as the world's largest corporation. Wal-Mart started its world's largest corporation. Wal-Mart started its international expansion in 1991, when it opened a international expansion in 1991, when it opened a SAM’s Club discount market in a suburb of Mexico SAM’s Club discount market in a suburb of Mexico City. An international division was created in 1994.City. An international division was created in 1994.

Wal-Mart has 1.3 million workers world-wide. Of Wal-Mart has 1.3 million workers world-wide. Of these, 303,000 were outside the United States. these, 303,000 were outside the United States. (Union-Network) (Union-Network)

Compared to any other corporation, that is a Compared to any other corporation, that is a workforce larger than that of GM, Ford, GE, and IBM workforce larger than that of GM, Ford, GE, and IBM combined. combined.

Comparative Advantage Comparative Advantage contd…contd…

Taken from the McKinsey Global Institute, October Taken from the McKinsey Global Institute, October 2001, Wal-Mart has taken a huge lead in productivity 2001, Wal-Mart has taken a huge lead in productivity over its competitors, a lead of 44 percent in 1987, 48 over its competitors, a lead of 44 percent in 1987, 48 percent in 1995, and still 41 percent in 1999, even as percent in 1995, and still 41 percent in 1999, even as competitors began to copy Wal-Mart's strategy. competitors began to copy Wal-Mart's strategy.

The net income of Wal-Mart in the fiscal year ending The net income of Wal-Mart in the fiscal year ending in 2002 was 6.671 billion U.S. Dollars in 2002 was 6.671 billion U.S. Dollars (6,671,000,000 USD).(6,671,000,000 USD).

Graphical GrowthGraphical Growth

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(Union-Network)

At $258 billion in 2003, Wal-Mart's annual At $258 billion in 2003, Wal-Mart's annual revenues are 2 percent of US GDP, and eight revenues are 2 percent of US GDP, and eight times the size of Microsoft's.times the size of Microsoft's.

The company’s marketing concept is quite The company’s marketing concept is quite unique to that of its competitors which has unique to that of its competitors which has given somewhat of a dominant monopoly. The given somewhat of a dominant monopoly. The stores are strategically established in most stores are strategically established in most suburban areas, areas known as small-town suburban areas, areas known as small-town America. (Jerry Useem)America. (Jerry Useem)

Comparative Advantage Comparative Advantage contd…contd…

Labor EtiquetteLabor Etiquette “Mistreatment of men and especially women in the “Mistreatment of men and especially women in the work force of Wal-Mart could lead to the demise of work force of Wal-Mart could lead to the demise of

such a large corporation.”such a large corporation.”

The company has a distinctive strategy which The company has a distinctive strategy which caters to their ability to keep prices low that caters to their ability to keep prices low that depends not just on its productivity, but also depends not just on its productivity, but also on its ability to stabilize above all others, the on its ability to stabilize above all others, the company’s labor costs. (Featherstone 282)company’s labor costs. (Featherstone 282)

Labor Etiquette Labor Etiquette contd.contd.

Wal-Mart’s employment structure results in Wal-Mart’s employment structure results in most times, women being underpaid or over-most times, women being underpaid or over-worked for the tasks they were performing. worked for the tasks they were performing. Many of these workers are paid so little that Many of these workers are paid so little that they cannot even afford the health benefits and they cannot even afford the health benefits and premiums, and at most times don’t work at premiums, and at most times don’t work at Wal-Mart long enough to qualify. Wal-Mart long enough to qualify. (Greenhouse) (Greenhouse)

Wal-Mart has also been known to make the most of there Wal-Mart has also been known to make the most of there general workforce, which maybe in some cases be referred to general workforce, which maybe in some cases be referred to as ‘taking advantage’ of its employees. Wal-Mart’s as ‘taking advantage’ of its employees. Wal-Mart’s employees do not engage in any single, repetitive task. employees do not engage in any single, repetitive task. Instead their mode of work is determined by the flow of Instead their mode of work is determined by the flow of goods and customers entering the store. (Ehrenreich 221)goods and customers entering the store. (Ehrenreich 221)

The company purposely limits the total number of employees The company purposely limits the total number of employees of any particular fiscal period, resulting in having less to pay of any particular fiscal period, resulting in having less to pay overall as a part of wage expenses. In doing so the company overall as a part of wage expenses. In doing so the company ensures the growth of the labor budget to lag behind the ensures the growth of the labor budget to lag behind the growth equivalent in sales. This method of productivity growth equivalent in sales. This method of productivity ensures higher revenues over expenses at all times. (Ellen ensures higher revenues over expenses at all times. (Ellen Rosen)Rosen)

Labor Etiquette Labor Etiquette contd.contd.

Wal-Mart’s employment level increases at a slow rate Wal-Mart’s employment level increases at a slow rate while the flow of work constantly builds at a more while the flow of work constantly builds at a more productive rate. Each employee is then expected to be productive rate. Each employee is then expected to be more productive since work will always be available more productive since work will always be available due to the lack of employees. due to the lack of employees.

Harsh management introduce a concept called “time Harsh management introduce a concept called “time theft”. Basically, employees using the company’s theft”. Basically, employees using the company’s work time to ease-break or socialize and in some work time to ease-break or socialize and in some cases, even ‘loitering’ and conversing while doing cases, even ‘loitering’ and conversing while doing work, is considered stealing from the company’s work, is considered stealing from the company’s time. Reducing the social atmosphere of the work time. Reducing the social atmosphere of the work environment. (Ehrenreich 221) environment. (Ehrenreich 221)

Labor Etiquette Labor Etiquette contd.contd.

General Labor Force ExploitationGeneral Labor Force Exploitation“Wal-Mart's continued success relies upon the abuse “Wal-Mart's continued success relies upon the abuse

of it's workforce.”of it's workforce.”

The high employee turnover rate is attributed The high employee turnover rate is attributed to the fact that Wal-Mart employees are to the fact that Wal-Mart employees are unhappy since they work harder than other unhappy since they work harder than other retailing establishments.retailing establishments.

Wal-Mart intentionally under-staffs its stores Wal-Mart intentionally under-staffs its stores and expects productivity to remain at a certain and expects productivity to remain at a certain level, resulting in employees often level, resulting in employees often multitasking. (Simon Head)multitasking. (Simon Head)

General Labor Force ExploitationGeneral Labor Force Exploitation contd.contd.

Any activity that a worker does that is not Any activity that a worker does that is not related to their job is considered as paid time related to their job is considered as paid time stolen from the company and punishable by stolen from the company and punishable by the company.the company.

Wal-Mart denies pay for time worked off the Wal-Mart denies pay for time worked off the clock through meal times and rest breaks, as clock through meal times and rest breaks, as well as some overtime. (Simon Head)well as some overtime. (Simon Head)

Managers are not allowed to let their Managers are not allowed to let their employees work more than 50 hours per week, employees work more than 50 hours per week, a rule if broken results in job termination.a rule if broken results in job termination.

The managers also keeps their employees; that The managers also keeps their employees; that have the last shift before closing; locked in the have the last shift before closing; locked in the Wal-Mart stores until the managers have Wal-Mart stores until the managers have visited every department. (Jasmine Brooks)visited every department. (Jasmine Brooks)

General Labor Force ExploitationGeneral Labor Force Exploitation contd.contd.

Women’s Right Case StudiesWomen’s Right Case Studies“Dukes Case”“Dukes Case”

In 2000 a 54 yrs old woman named Betty In 2000 a 54 yrs old woman named Betty Dukes filed a sex discrimination dispute Dukes filed a sex discrimination dispute against Wal-Mart. against Wal-Mart.

Betty was denied training to advance to a Betty was denied training to advance to a higher position. higher position.

Case represents 1.6 million women that Case represents 1.6 million women that worked at Wal-Mart since Dec. 1998 former worked at Wal-Mart since Dec. 1998 former and current. (LEXIS-NEXIS)and current. (LEXIS-NEXIS)

Women’s Right Case Studies Women’s Right Case Studies contd.contd.

Lawsuit charged Wal-Mart with discriminating Lawsuit charged Wal-Mart with discriminating women in salary, promotion and job women in salary, promotion and job assignments.assignments.

Wal-Mart demoted Betty for appealing her Wal-Mart demoted Betty for appealing her advancement. advancement.

The judge affirmed for the Betty Dukes et al.The judge affirmed for the Betty Dukes et al.

72% of Wal-Mart staff are women. 72% of Wal-Mart staff are women. Women represent 1/3 of management jobs. Women represent 1/3 of management jobs.

Men have 90% of the store management Men have 90% of the store management positions. (SF Gate)positions. (SF Gate)

There is only one female in the corporate There is only one female in the corporate office.office.

Women get 37 cents less then Men having the Women get 37 cents less then Men having the same position. (SF Gate)same position. (SF Gate)

Women’s Right Case Studies Women’s Right Case Studies contd.contd.

In June 2005, the National Organization of In June 2005, the National Organization of Women launched a campaign to educate shoppers Women launched a campaign to educate shoppers about Wal-Mart’s exploitation of its women about Wal-Mart’s exploitation of its women employees. (Salon)employees. (Salon)

They have discrimination course that Managers They have discrimination course that Managers can attend to prevent further discrimination.can attend to prevent further discrimination.

Seminars encourage giving raises and promotions Seminars encourage giving raises and promotions to women that are hard workers. (Salon)to women that are hard workers. (Salon)

Women’s Right Case Studies Women’s Right Case Studies contd.contd.

Prevention of UnionsPrevention of Unions“Undermines employee rights in avoiding the “Undermines employee rights in avoiding the

involvement of preventative labor unions”involvement of preventative labor unions”

Wal-Mart wants to continue to pay sub-standard Wal-Mart wants to continue to pay sub-standard wages and deny workers properwages and deny workers propermedical insurance.medical insurance.

Wal-Mart has many "union busters" who illegally Wal-Mart has many "union busters" who illegally threaten workers in an attemptthreaten workers in an attemptto negatively control workers efforts to organize a to negatively control workers efforts to organize a union. (Jan Furstenborg)union. (Jan Furstenborg)

Wal-Mart managers are told to identify Wal-Mart managers are told to identify signs/symptoms of unionization withinsigns/symptoms of unionization withinthe company, however unions are needed to prevent the company, however unions are needed to prevent the mistreatment of employees, and to obtainthe mistreatment of employees, and to obtainthem fair living wages.them fair living wages.

Prevention of Unions Prevention of Unions contd.contd. Employees should have the right, but Wal-Mart denies the Employees should have the right, but Wal-Mart denies the

employees the rightemployees the rightto bargain collectively through representatives of their to bargain collectively through representatives of their own choosing, and toown choosing, and toengage in other concerted activities for the purpose of engage in other concerted activities for the purpose of collective bargainingcollective bargainingor other mutual aid and protection.or other mutual aid and protection.((Nation Labor Relations Act Nation Labor Relations Act ))

Wal-Mart has refused to accept the workers' choice for a Wal-Mart has refused to accept the workers' choice for a voice at work andvoice at work andthe NLRA has decided to prosecute Wal-Mart for refusing the NLRA has decided to prosecute Wal-Mart for refusing to bargain a unionto bargain a unioncontract with the workers.contract with the workers.

ConclusionConclusion“Buckle up Wal-Mart the ‘Seat-Belt’ law is now in “Buckle up Wal-Mart the ‘Seat-Belt’ law is now in

effect”effect” As an obsessively anti-union company at home and abroad, As an obsessively anti-union company at home and abroad,

Wal-Mart builds its competitive advantage on low wages, Wal-Mart builds its competitive advantage on low wages, poor benefits and a squeeze on producers. Through predatory poor benefits and a squeeze on producers. Through predatory pricing, it can force both large and small competitors out of pricing, it can force both large and small competitors out of business. World-wide, Wal-Mart is the most serious danger business. World-wide, Wal-Mart is the most serious danger for employment, wages and working conditions in for employment, wages and working conditions in commerce. (Union-Network)commerce. (Union-Network)

If Wal-Mart inconspicuous practices are continued, they If Wal-Mart inconspicuous practices are continued, they could possibly risk a dramatic downfall in their overall could possibly risk a dramatic downfall in their overall productivity through labor strikes and more lawsuits. productivity through labor strikes and more lawsuits.

The company thrives on its customer’s loyalty, disobeying The company thrives on its customer’s loyalty, disobeying their trust can be of detriment to their market especially with their trust can be of detriment to their market especially with a rise in merchandising competitions. a rise in merchandising competitions.

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Case Law. 8 Oct. 2005 Case Law. 8 Oct. 2005 <http://en.lexisnexis.org/lexnex/Dukes_vs._Wal-Mart>.<http://en.lexisnexis.org/lexnex/Dukes_vs._Wal-Mart>.

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Featherstone, Liza. Featherstone, Liza. Selling Women ShortSelling Women Short. 1stst ed. Vol. 1. Pittsburg: . 1stst ed. Vol. 1. Pittsburg: Basic Books, 2004. Basic Books, 2004. The Landmark Battle for Workers' Rights At Wal-The Landmark Battle for Workers' Rights At Wal-MartMart. 3 Oct. 2005 . 3 Oct. 2005 <http://www.perseusbooksgroup.com/basic/book_detail.jsp?<http://www.perseusbooksgroup.com/basic/book_detail.jsp?isbn=0465023150>. isbn=0465023150>.

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CommerceCommerce. Nov. 2002. Union Network International. 10 Oct. 2005 . Nov. 2002. Union Network International. 10 Oct. 2005 <http://www.union-network.org/unisite/sectors/commerce/multinati<http://www.union-network.org/unisite/sectors/commerce/multinationals/>. onals/>.

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Head, Simon. "Inside the Leviathan." Head, Simon. "Inside the Leviathan." The New York Review of The New York Review of BooksBooks 20th ser. 51 (2004). 3 Oct. 2005 20th ser. 51 (2004). 3 Oct. 2005 <http://www.nybooks.com/articles/17647>.<http://www.nybooks.com/articles/17647>.

Rosen, Ellen. Rosen, Ellen. Wal-Mart: Template for 21st Century Capitalism?Wal-Mart: Template for 21st Century Capitalism? Wal-Mart: The Face of 21st Century Capitalism, 12 Apr. 2004, Wal-Mart: The Face of 21st Century Capitalism, 12 Apr. 2004, University of California. 3 Oct. 2005 University of California. 3 Oct. 2005 <http://www.ihc.ucsb.edu/walmart/>. <http://www.ihc.ucsb.edu/walmart/>.

Useem, Jerry. "America's Most Admired Companies: One Nation Useem, Jerry. "America's Most Admired Companies: One Nation Under Wal-Mart." Under Wal-Mart." The Fortune 500 Largest US CorporationsThe Fortune 500 Largest US Corporations. 3 . 3 Mar. 2003. Fortune. 3 Oct. 2005 Mar. 2003. Fortune. 3 Oct. 2005 <http://www.fortune.com/fortune/mostadmired/articles/0,15114,423<http://www.fortune.com/fortune/mostadmired/articles/0,15114,423053,00.html>.053,00.html>.

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Works Cited Works Cited contd.contd.