WalMart, The Most Profitable Corporation in America, The Good, The Bad, and the Ugly Gets Uglier

Everyone knows WalMart, everyone in American has probably shopped at one. Everyone in America has an opinon regarding WalMart Not everyone knows the facts!

I am not going to put any of my own words in this hub until the end.

FACTS ON WAL MART---

The retail giant has close to two million employees worldwide and has faced a number of lawsuits in regards to its workers. Issues including low wages, poor working conditions, inadequate health care, as well as the company's strong anti-union policies. Critics point to a high turnover rate as sign of an unhappy workforce. Nearly 70% of WalMart employees leave in the first year.Despite the turnover rate the company still is able to affect unemployment rates. A study by Oklahoma State University states, "Wal-Mart is found to have substantially lowered the relative unemployment rates of blacks in those counties where it is present, but to have had only a limited impact on relative incomes after the influences of other variables were taken into account"

WalMart reported full time hourly associates received an average of $10 an hour, working 34 hours a week, an employee earns $17,874 per year which is 20% less than the average retail worker.WalMart managers are judged based on their ability to control payroll. Wal-Mart founder Sam Walton said, "I pay low wages. I can take advantage of that. We're going to be successful, but the basis is a very low-wage, low-benefit model of employment."

A survey by the state of Georgia's subsidized healthcare system, PeachCare, found that Wal-Mart was the largest private employer of parents of children enrolled in its program. A study at the University of California, Berkeley clained Wal-Mart's low wages and benefits are insuffient leading to California taxpayers paying $86 million a year to Walmart employees.

A lawsuit in Missouri asserted 160,000 to 200,000 people who were forced to work off-the-clock, denied overtime pay, or were not allowed to take rest and lunch breaks. The retail giant was ordered to pay $50 million to settle a suit that claimed 69,000 employees in Colorado had been forced to work off-the-clock.The company also faced lawsuits in other states, including Pennsylvania, Oregon, and Minnesota. Law suits were also filed on behalf of full-time Wal-Mart pharmacists whose base salaries and working hours were reduced as sales declined, resulting in the pharmacists being treated like hourly employees.

Duke vs. Wal-Mart, a discrimination case on behalf of 1.5 million current and former female employees of Wal-Mart’s 3,400 stores across the United States. Dr. Bliebly who evaluated WalMart’s employment policies said "against what social science research shows to be factors that create and sustain bias and those that minimize bias, the men and women not being created equal in the workforce is what Wal-Mart is doing and they should not be doing so.

200 workers on the morning shift at a Wal-Mart Super Center in Hialeah Gardens, Florida walked out in protest against new store policies, shouting "We want justice" and criticizing the company's recent policies as "inhuman." Reasons for the revolt were the cut back of full-time hours, a new attendance policy, and pay caps that the company imposed compelling workers to be available to work any shift and shifts would be assigned by computers at corporate headquarters. Wal-Mart quickly held talks with the workers.

An internal WalMart audit in July 2000 examined one week's time-clock records for 25,000 employees. According to the Times, the audit, "pointed to extensive violations of child-labor laws and state regulations requiring time for breaks and meals," including 1,371 instances of minors working too late, during school hours, or for too many hours in a day, 60,767 missed breaks and 15,705 lost meal times. WalMart vice president of communications responded that company auditors had determined the methodology used was flawed.

WalMart has been accused of allowing illegal immigrants to work in its stores. Federal investigators have stated Wal-Mart executives knew that contractors were using illegal immigrants as they had been helping the federal government with an investigation for the previous three years. Federal Agents raided 61 WalMart stores in 21 in "Operation Rollback," resulting in the arrests of 250 nightshift janitors who were undocumented. A grand jury convened to consider charging Wal-Mart executives with labor racketeering crimes for knowingly allowing illegal immigrants to work at their stores. Wal-Mart blamed the contractors, but federal investigators point to wiretapped conversations showing that executives knew some workers did not have the right papers. Raids in 1998 and 2001 and 2003 resulted in the arrests of 100 workers without documentation located at WalMart stores around the country.

Wal-Mart's health insurance covered 44% or approximately 572,000 of its 1.6 million U.S. workers. Wal-Mart rival, Costco, insures approximately 96% of its eligible workers. WalMart spends on average of $3,500 per employee, 27% less than the retail-industry average of $4,800. When asked why so many WalMart workers choose to enroll in state health care plans instead of Wal-Mart's, CEO at the time, Lee Scott responded, "The public program may actually be a better value, with relatively high income limits to qualify, and low premiums."

A WalMart internal memo sent to the Board of Directors advised trimming over $1 billion in health care expenses by 2011 through measures such as attracting a younger, the memo suggested giving sedentary Wal-Mart staffers more physically demanding tasks, such as cart-gathering, and eliminating full-time positions in favor of hiring part-time employees who would be ineligible for health insurance, which violated the Americans with Disabilities Act of 1990. The memo also accused WalMart's lower paid employees of abusing emergency room visits, "possibly due to their prior experience with programs such as Medicaid," such visits may actually be due to the reduced ability of underinsured people to make timely appointments to see a regular physician. Critics point to this internal memo as evidence that Wal-Mart purports to be generous with its employee benefits, in reality the company is seeks to cut such benefits and discourages supposedly unhealthy people from working at Wal-Mart.

Mauldin v. Wal-Mart Stores, Inc. , was filed against the big box store citing the company's denial of health insurance coverage for prescription contraceptives. The lawsuit was certified for class action status, but later dropped once Wal-Mart agreed to change its health insurance policies.

WalMart sued a former employee to recover the money it spent for her health care after she was brain-damaged in a car accident. Wal-Mart sued the employee after she received a settlement, after a wave of bad publicity, the retail giant dropped the suit.

These are all criticism's coming from non-union related sources. These are just a few instances of grievances and complaints about WalMart and it's shady employer-employee relations. Instances similar to those listed above have occured at least once in every state in the continental states. Hawaii is the only one I have found no information on.WalMart is not what Sam Walton had envision it to be, and since his passing complaints regarding employee benefits, pay, and issues with management and changes in company policies have tripled. The turn over rate at WalMart is now the highest in the retail industry.

Wally World has been criticized for its policies against labor unions. Critics blame workers' reluctance to join the labor union on anti-union tactics such as managerial surveillance and pre-emptive closures of stores or departments. WalMart states it's not anti-union but rather pro-associate. Sam Walton resisted a unionization push by the Retail Clerks International Union in two Missouri towns by hiring a professional union buster to educate workers on the negative aspects of unions. The union busters also took steps to show Walmart workers on how the company had their best interests in mind, encouraging them to air concerns with managers and implementing a profit-sharing program. Wal-Mart also hired a consulting firm, Alpha Associates to develop a union avoidance program. In Jacksonville, Texas meat workers voted to unionize and Wal-Mart eliminated in-house meat-cutting jobs. Wal-Mart claimed that the closing of in-store meat packaging had been planned. The National Labor Relations Board judge ordered WalMart to restore the meat department, completely and to recognize and bargain with the union.

In 2005, WalMart executive Tom Coughlin was forced to resign from its Board of Directors, facing charges of embezzlement. Coughlin claimed the money was used for anti-union project involving cash bribes paid to the United Food and Commercial Workers Union in exchange for a list of names of Wal-Mart employees that had signed union cards. He claimed that the money was paid to him, by Wal-Mart, as compensation for his anti-union efforts. A U.S. attorney stated that no evidence was found to back up Coughlin's claims, and WalMart continues to deny the existence of the anti-union program, even though Coughlin restated those claims to reporters after his sentencing.

WalMart also had run-ins with the German Ver.di labor union. Those issues, along with cultural differences and low performing stores, led Wal-Mart to pull out of the German market entirely. Wal-Mart has allowed workers at all of its Chinese stores to become members the state-sanctioned All-China Federation of Trade Unions (ACFTU). The ACFTU is the only trade union in China and as a tool of the government, has been seen as not acting in the best interest of its workers, bowing to the government pressure on industry growth and not defending workers' rights.

Mark Kastel of The Cornucopia Institute says in critisism of WalMart that its practices regarding the sourcing of foods worldwide from "factory farms". Mr. Kastel says"There is no action we take, as consumers, that has a more profound impact on the environment than our choice of food, and WalMart's dependence on imports and unsustainable factory farming is highly destructive."

A Superstore opened in 2004 in Mexico, 2 miles away from the historic Teotihuacan archaeological site and Pyramid of the Moon. WalMart's proposal received protest and media attention as the location wasn't supported by Mexico's National Anthropology Institute, the United Nations, and the Paris-based International Council on Monuments and Sites. Local merchants, helped by environmental groups and anti-globalization groups opposed the construction, and poet Homero Aridjis joined the protest calling the opening  supremely symbolic and "like planting the staff of globalization in the heart of ancient Mexico." Archaeologists oversaw construction and discovered a small clay and stone altar along with some other artifacts where the store's parking lot is now located.

WalMart proposed constructing a store off Charlotte Pike near Nashville, Tennessee. The building site was home to both Native American burial grounds and a Civil War battle site. Protests developed by Native Americans and Civil War interest groups, but the store was constructed after moving graves and some modifications of the site. Civil War relics were  discovered at the site leading the developers to donate land and permitting access to the Civil War historic site.The Indian burials were removed and re-buried.

Developers tore down the long-closed Dixmont State Hospital in Pennsylvania near with plans to build a shopping complex anchored by a WalMart. While there were initially no general objections to WalMart itself, many residents didn't want to see Dixmont torn down. While the land was being excavated after the complex was torn down to create a plateau for the WalMart to sit on, a landslide covered Route 65 and the railroad tracks between the PA 65 and Ohio River, shutting down both routes for weeks. WalMart stabilized the landslide, but residents argued they did so that it could continue with work to build the store, but WalMart backed out allowing the land to return to nature.

Unions created organizations and websites to influence public opinion against WalMart, such as Wake Up Wal-Mart (United Food and Commercial Workers) and Wal-Mart Watch (Service Employees International Union). WalMart in return launched Working Families for Wal-Mart to counter criticism from the unions. Additional efforts to counter the criticism included launching  public relations campaigns through its public relations website, and several television commercials. The company retained the public relations firm Edelman to address the press and respond to media reports, started interacting directly with bloggers by sending them news and suggesting postings, and sometimes inviting them to visit Walmart corporate headquarters

This information is disturbing from my point of view. How can any company come in and ruin sacred or protected land for the sake of generating more wealth? This is purely an example of greed and total disregard for what is valued and important to the communities involved. Not only does Walmart display a lack of consideration for 'historic' and sacred land it shows they care not for the communities they serve and only look towards profit for the corporation, no matter the loss the communities have to face. I know some of you will say WalMart is good because they are anti-union and so on, but there are many reasons beyond that which make WalMart 'Too Big". They now have their hands in on every angle of the retail business, their hands are in our politicians pockets who are writing up legislation which will benefit WalMart and not of the entrepreneurial spirit that built this country of ours. The people that shop at WalMart are contributing to a monopoly of sorts and all should be encouraged to cut-back on their spending at the retail giant. They are even trying the cell phone business now, there are plenty of good cell phone companies already and are attempting to create agricultural  caps and legislation to keep their cost of purchasing food items to a minimum which would result in farmers loss of income. WalMart wants their greedy little paws in on everything, including you.

- June 8, 2009
Angry consumers have filed a class action against Wal-Mart, alleging that refunds from the leading retailer don't include the full amount paid in sales tax.Lead plaintiff John Whitwell of Maryville, IL, bought a Blu-ray disc machine at a Wal-Mart store in Collinsville, IL, for a total of $214.04; he later returned it to a store in Glen Carbon, IL and only received $211.56 back. According to the complaint, "Upon information and belief WalMart returned the lesser amount because the applicable tax rate at the Glen Carbon, Illinois store is 6.85 percent," lower than the 8.1 percent rate in Collinsville. The complaint alleges that the failure to provide a full refund, including sales tax, is a breach of contract. WalMart promises a "refund of all amounts paid by the purchaser if merchandise is returned to it within the prescribed time period. "WalMart cannot duck the obligation by making exception when items are bought at one store and then returned at another location. WalMart also refuses to follow the practice when the situation is reversed, if an item is returned to a store with a higher sales tax than the one at which it was purchased, WalMart will not return the additional tax money with the refund.Read more: http://consumeraffairs.com/news04/2009/06/walmart_taxes.html#ixzz16wmOPK8l

The company's founding family has is fighting to pass income tax changes and other legislation that could preserve its grip on the country's biggest business and the family's $84 billion fortune. They spent $3.2 million on lobbying, conservative causes and candidates for last year's federal elections. That's more than double what it spent in the previous two elections combined. "To see the wealthiest family in America weighing in is scary," says Chuck Collins, co-founder of Responsible Wealth, a non-profit group that tracks the super-rich. The Waltons declined to discuss their political activities but a USA TODAY review of public documents reveals the family emerging as a political juggernaut on tax issues, extending WalMart's manipulation over our economy and society even more.

Helen, Alice, and sons Jim, John and Rob, own nearly 40% of Wal-Mart. The children got their shares when the company started, allowing the family to defer billions in estate taxes at Walton's death. The political rise began in 1999, when Walton Enterprises hired one of Washington's top lobbyist-law firms, Patton Boggs, to represent it before Congress. Through last year it's paid the firm $1 million,according to public documents. Walton Enterprises controls the family's WalMart stock and interests in newspapers and other businesses. Patton Boggs, which has ties to the Bush administration, has led efforts seeking permanent repeal of the estate tax. The firm is only one of WalMart's six lobbying firms. This isn't the first time WalMart has tried to legally define away it's obligations. In its early days, it tried arguing that it had no obligation to pay its employees minimum-wage. http://firstmention.com/walmart.aspx

A report states WalMart saves $3 million annually from challenging property tax bills, a small sum compared with the company’s revenue, nearly $1 billion a day. David E. Brunori, a professor at George Washington University and contributing editor of the journal State Tax Notes, said that any major employer was more likely than a homeowner or small business to benefit from “a bias by property tax officials who want to cut them some slack.”

Hernando County Florida spent more than $100,000 fighting WalMart’s request to exclude sales taxes from the value of its shelving and other fixtures, said its lawyer, Gaylord Wood of Bunnell, Fla. The State Supreme Court last year ruled against WalMart.

WalMart sought to reduce the assessment of a distribution center in Clarksville, Ark., to $23 million from $33 million in 2003. “Wal-Mart showed up with their property-tax executive, three lawyers and a couple of accountants,” Mr. Hurst said. He added that he had been acquainted with Sam Walton, founder of WalMart, and claimed “I am sure he would not approve of trying to reduce the money that goes for our kids’ schools.” WalMart based in Arkansas, sued Mr. Hurst and lost.

Some WalMart stores are built in part with sales taxes the company collects from customers and then retains, an increasingly common technique of local economic development. The company makes widespread use of tax-exempt bonds and in which a local government acquires land for the company, leasing it to WalMart at below-market rates.

Walmart took advantage of a provision in Oregon's BusinessEnergy Tax Credit allowing third parties with no ties to greenpower industry to buy credits at a discount and reduce their state income tax bill. State records show Walmart paid $23 million last year for the right to claim $33.6 million in energy tax credits. The cash went to seven projects, including two eastern Oregon wind farms and SolarWorld's manufacturing plant in Hillsboro. In return, Walmart profits $11 million on the and the amount of its tax reduction. The loser is Oregon's general fund which pays for public schools, prisons and health care programs, because the state is out the full $33.6 million in tax revenues.Walmart and others are making money on projects that were closed, went belly up or never produced the energy or energy savings they initially claimed.

The retail giant reported that its third-quarter revenue was $102 billion, up 2.6 percent over the 2009 period, and thanks to 10% growth in WalMart International revenue. Net income in the third quarter was $3.6 billion, up 10% from 2009. Third-quarter income was boosted by a $191 million tax benefit related to WalMart’s international operations.

In 2003, WalMart transferred ownership of its Ellicott City Maryland store to a Delaware registered affiliate. No money changed hands, legal records show. By moving property ownership across state lines, they created a tax-exempt "landlord" that can charge its stores rent and deduct the payments from WalMart's Maryland taxable income, reducing its Maryland tax. In North Carolina, tax collectors deemed this kind of strategy improper and recovered $25 million in penalties, interest and tax that WalMart had not paid over three years,according to legal documents. WalMart Real Estate Business Trust is organized as a real estate investment trust, which is crucial to the tax savings. REITs are exempt from income tax if most of their profits go back to shareholders, who in this case, is WalMart.  These Captive REITs are different than publicly traded real estate trusts, which are owned by numerous shareholders.

This list could go on to cover all 50 states in our United States as well as similar tactics WalMart is pursuing with international organizations such as the United Nations and foreign governments such as China and other developing nations.

WalMart also endorsed ObamaCare and its employer mandate. The U.S. Chamber of Commerce, the National Federation of Independent Business, and the National Retail Federation all opposed it. I believe there are polls showing that Americans don’t want ObamaCare either. It will raise costs, reduce jobs and accessibility, as well as explode the number of uninsured. It is bad enough that WalMart endorsed something so many see as a bad thing for the country, but even worse that it did so jointly with the corrupt Service Employees International Union (SEIU). In several parts of the country, SEIU was indistinguishable from the radical group ACORN before it had to disband. I find it funny most we are 'for' Wally's World are against the union and despise ACORN. We all are entitled to our opinions though. Some are just better informed and I hope you've found this information useful in decided where to spend your next shopping experience. I also hear that the retail giant's stores are filled with bad-mannered people and crowded and chaotic parking lots too! So why not go some where you may just enjoy your shopping experience a little more. Just a suggestion.

*Please read more and watch the video to become better informed on the ways WalMart plays both sides of the political table* at the link below---thanks for reading!*

I have decided to make a series of hubs on WalMart and it's effect on the economy, this has been the second in the series and more will follow. My intention is to point out that WalMart has grown into 'something' too large to be controlled by anything other than those who choose to shop there. Below are two comment sections, one for pro's and one for the con's of WalMart. All comments are welcome and will be used in upcoming hubs in this series. Read my first hub on WalMart and the comments to discover what sparked this idea.

My 'opinion' is that WalMart is not good for America in the way it once was. WalMart has left it's American Dream motto of it's founder Sam Walton and has moved on to global domination. My view is that WalMart has become it's own governing entity and is hurting our tax structure, our economy, the value of our dollar and has directly effected our job growth, the pay scale of the retail industry, and has driven manufacturing opportunities out of our country. The way WalMart has impacted our country will be recognized and I can guaranteethe results will favor the opinions I expressed in my first hub.Not because I am the one writing it, but because the facts will speak for themselves. The information is out there and I welcome all opposition to my opinions by providing any information that proves the information I present to be wrong. I may have an encyclopedia when this is finished, and welcome all contributions.