The Unions versus Wal-Mart

www.aflcio.com; www.seiu.org; www.walmartwatch.com; www.walmartfact.com

Sometimes we hear about the potential for war somewhere but thankfully opposing sides work to diffuse the conflict. No such luck when it comes to organized labor and Wal-Mart. According to Lee Scott, Wal-Mart's CEO, union leadership has declared war on the company. Joe Hansen, president of the United Food and Commercial Workers Union (UCFW), does not deny it.

Wal-Mart is the nation's largest employer, and not a single one of its 4,000 stores or 1.4 million workers (or associates, as Wal-Mart calls them) is unionized. The unions claim Wal-Mart employees have to be organized because the economic power of Wal-Mart affects not just Wal-Mart workers but all workers' standard of living. Stewart Acuff, organizing director of the AFL-CIO, states, "Wal-Mart is a third-party negotiator at every bargaining table whether we like it or not." Therefore, organized labor's war against Wal-Mart is by far the best known and financed of all union efforts. Labor vows it will continue, with new tactics.

After losing a bitter organizing campaign in Las Vegas, the UCFW decided to abandon its strategy of trying to organize Wal-Mart workers store by store. Instead the union, with the help and support of fellow unions and activist groups, formed the Center for Community and Corporate Ethics (CCCE). Its purpose is to organize and build a nationwide grassroots campaign to battle Wal-Mart's efforts at expansion as well as force the company to improve its benefits and treatment of employees. The "Community Fights" campaign encourages communities to stand up and stop Wal-Mart expansion. The union offers strategies, tactics, and tools communities need to lead a successful campaign. Thus far, residents from Englewood, California to New York City have united to stop Wal-Mart from expanding in their area. Venture, California is the latest city to bring voters a ballot initiative to block the construction of a Wal-Mart.

The UCFW also sponsors an expansive media campaign called "Wake Up Wal-Mart," intended to build public opinion supporting the union's position against the company. The Service Employees International Union (SEIU) invites visitors to become active in the union's organizing efforts through the campaign "Wal-Mart Watch" and its website www.walmartwatch.com. The unions support a "handshake with Sam," an online petition drive demanding better treatment and health care for Wal-Mart workers. The SEIU has also developed a video series on You Tube that it says will tell the true story of Wal-Mart. Its first video, "Are You Living Better Yet," is now available for viewing.

Wal-Mart, of course, has put up a counter offensive. The company advertises its positive corporate goodwill and citizenship on local and national media and has several websites of its own, such as www.walmartfacts.com that represent the views of working families who support the company. Wal-Mart argues it does offer health insurance through health savings accounts (HSAs) for as little as $11 per month for new workers and for a dollar-for-dollar match for existing employees. The company claims that unions dislike HSAs because the individual workers, not the union, control their accounts. Wal-Mart also touts the 4 percent match it offers employees on its 401(k) plans.

Wal-Mart defends its treatment of workers, saying "the heartbeat of the company is its associates; to mistreat them would be against our founder's creed and just plain bad business." It claims the real reason unions want to organize Wal-Mart employees is not to help them but to make them pay dues. Company executives note the UFCW has watched its financial assets fall 28 percent since 2005. Wal-Mart has increased its spending on national advertising to counter union criticisms with the theme that Wal-Mart is "good for America."

This conflict promises to be long and hard-fought. CEO Scott claims the unions either want to unionize all Wal-Mart workers or make the company go away; he says neither will happen. The unions say the future of working people is at stake and they have no plans to walk away from the fight. The battle lines are drawn, and it looks like there is little chance for peace.

1			How important is public opinion and the state of the economy in a labor battle between Wal-Mart and organized labor?
2			Visit the websites mentioned in the case and decide which side of the labor dispute you support. How did you make your decision?
3			Why do you think Wal-Mart is so heavily opposed to unionization of its stores?