Wal-Mart
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This document is a compilation of articles from Los Angeles Times and has been created for research purpose.
Articles:
An Empire Built on Bargains Remakes the Working World
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Scouring the Globe to Give Shoppers an $8.63 Polo Shirt
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Audit Stance Generates Controversy
Grocery Unions Battle to Stop Invasion of the Giant Stores
Selling Eel and Chicken Feet — Plus M&Ms and Sony TVs
An Empire Built on Bargains Remakes the Working World
Wal-Mart is so powerful that it moves the economies of entire countries, bringing profit and pain. The prices cant be beat, but the wages can.
By Abigail Goldman and Nancy Cleeland
Times staff writers
November 23, 2003
LAS VEGAS — Chastity Ferguson kept watch over four sleepy children late one Friday as she flipped a pack of corn dogs into a cart at her new favorite grocery store: Wal-Mart.
The Wal-Mart Supercenter, a pink stucco box twice as big as a Home Depot, combines a full-scale supermarket with the usual discount mega-store. For the 26-year-old Ferguson, the draw is simple.
“You cant beat the prices,” said the hotel cashier, who makes $400 a week. “I come here because its cheap.”
Across town, another mother also is familiar with the Supercenters low prices. Kelly Gray, the chief breadwinner for five children, lost her job as a Raleys grocery clerk last December after Wal-Mart expanded into the supermarket business here. California-based Raleys closed all 18 of its stores in the area, laying off 1,400 workers.
Gray earned $14.68 an hour with a pension and family health insurance. Wal-Mart grocery workers typically make less than $9 an hour.
“Its like somebody came and broke into your home and took something huge and important away from you,” said the 36-year-old. “I was scared. I cried. I shook.”
Wal-Mart gives. And Wal-Mart takes away.
From a small-town five-and-dime, Wal-Mart Stores Inc. has grown over 50 years to become the worlds largest corporation and a global economic force.
It posted $245 billion in sales in its most recent fiscal year — nearly twice as much as General Electric Co. and almost eight times as much as Microsoft Corp. It is the nations largest seller of toys, furniture, jewelry, dog food and scores of other consumer products. It is the largest grocer in the United States.
Wal-Marts decisions influence wages and working conditions across a wide swath of the world economy, from the shopping centers of Las Vegas to the factories of Honduras and South Asia. Its business is so vital to developing countries that some send emissaries to the corporate headquarters in Bentonville, Ark., almost as if Wal-Mart were a sovereign nation.
The company has prospered by elevating one goal above all others: cutting prices relentlessly. U.S. economists say its tightfistedness has not only boosted its own bottom line, but also helped hold down the inflation rate for the entire country. Consumers reap the benefits every time they push a cart through Wal-Marts checkout lines.
Yet Wal-Marts astonishing success exacts a heavy price.
By squeezing suppliers to cut wholesale costs, the company has hastened the flight of U.S. manufacturing jobs overseas. By scouring the globe for the cheapest goods, it has driven factory jobs from one poor nation to another.
Wal-Marts penny-pinching extends to its own 1.2 million U.S. employees, none of them unionized. By the companys own admission, a full-time worker might not be able to support a family on a Wal-Mart paycheck.
Then there are casualties like Kelly Gray. As Wal-Mart expands rapidly into groceries, it is causing upheaval in yet another corner of the economy. When a Supercenter moves into town, competitors often are wiped out, taking high-paying union jobs with them.
Wal-Marts plans to enter the grocery business in California early next year have thrown the states supermarket industry into turmoil. Fearful of Wal-Marts ability to undercut them on price, the Ralphs, Vons and Albertsons chains have sought concessions from their unionized workers in Southern and Central California, leading to a work stoppage now entering its seventh week.
Half a century ago, the nations largest and most emulated employer was General Motors Corp. “Today,” said Nelson Lichtenstein, a history professor at UC Santa Barbara, “for better or worse, its Wal-Mart.”
GM brought prosperity to factory towns and made American workers the envy of the world. With a high-wage union job, an assembly-line worker could afford a house, a decent car, maybe even a boat by the lake.
There was a bit of truth, Lichtenstein said, to the famous assertion by Charles Wilson, General Motors chief from 1941 to 1953, that what was good for GM was good for the country.
With Wal-Mart, the calculus is considerably more complex.
POCKETBOOK APPEAL: Glenn and Debbie Miraflor shop at a Wal-Mart in Las Vegas. Glenn, a member of Ironworkers Local 416, dislikes the retailers antiunion stance but asks, “Where else are you going to find a computer for $498?” (photo: Genaro Molina/Los Angeles Times)
We Have Split Brains
Glenn Miraflor used to chide his wife for shopping at Wal-Mart.
As a member of Ironworkers Local 416, the 50-year-old father of four is well aware of the retailers anti-union stance. But when the familys credit card debt topped $10,000, Wal-Marts deals suddenly looked irresistible.
“Where else are you going to find a computer for $498?” he asked, looking for a PC with his wife, Debbie, at the Supercenter