Wal-Mart defends controversial food drive for employees - TODAY.com
Was the drive misrepresented? The greater Walmart wage problems?
I know that there are several people on this board that strongly dislike Walmart. I am not claiming they are perfect, but I do disagree with them having to pay their employees vastly more than their competitors. I am coming at this from the perspective of someone who's parents both lost their job at the same time when the factory they worked at decided to move to China because it was cheaper to operate there. The soaring labour costs due to unions cost hundreds of jobs in a town that had very few jobs to begin with. Now I do think there should be a balance, but not extremes.
If Walmart paid their workers $25,000 a year and Kmart, Sears, and all their other competitors paid their workers $8 an hour, Walmart might be able to swallow the cost for a few years just on the profit that they have now. However, there would come a time that they would not be able to make up the difference. They simply would not be able to compete with such higher labor costs. The over 1 million workers would then be out of a job completely.
I am not saying that Walmart could not do better (They could), but that they can not be singled out to pay different wages than their competitors. It would drive them under and significantly hurt those employees they are trying to help.
A fund to help people who need it for whatever reason (house fire, medical problems, ect) is not limited to people who work low wage jobs. Those kinds of problems effect people of all income brackets.
In my opinion, a better solution is to leave those jobs their for people to gain job experience, learn, make money in between jobs and focus efforts on educating people and getting them in careers. Not to pay Walmart employees so much that A - Walmart will go out of business and B - The people who work there will never want to better themselves and move on to a better career.
Let's say the only people employed there are those you suggested - gaining job experience, learn, making money in between jobs - should a company who made $17 billion in profits last year be requesting those in the same situation help each other out? Just for the sake of argument, Walmart could easily provide every single employee with a turkey and all of the fixings* and it wouldn't even make a dent in their profits. At $100 each, that's what? $140 million? Yet they are asking their $8/hour employees to help out other $8/hour employees.
*The company I worked for when I was 23 gave all employees gift certificates to the local grocery store for that very reason. It was much appreciated and gave us the message that the owners of the company cared about their employees.
ETA: In all of the local requests for donations, the requests haven't come from a higher-up. It isn't the Cheif of Police asking people to donate. It's the colleagues asking each other to donate along with them.
That's what bothers me. It isn't a cashier taking up a donation for another cashier; it's people who are earning 7- or 8-figures asking those who are earning minimum wage to donate to each other.
Last edited by ethanwinfield; 11-18-2013 at 09:42 PM.
I agree with anyone who dislikes Walmart
Yep, better wage=different pool of employees to pick from and also more loyal employees. Costs a lot more to take in a new employee than to keep an existing one.
I love that co workers are helping each other out. It hurts my heart that they work for such a wealthy company that they have to do this.
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One of the biggest problems with Walmart is that in many places they successfully drive out their competition. They demand tax breaks from communities to build a store, which gives them an advantage over competitors, and they charge lower prices than competitors for a year or two because other Walmart stores can pick up the slack. Then after their competitors go out of business, they raise prices and lower wages, and everyone is SOL because there is nowhere else to shop, nowhere else to get a job, and the community has lost tax revenue. The *only* places where Walmart pays a living wage is in the larger metropolitan areas where they still have competition.
And again, this is a corporation that netted $17 BILLION last year. They can easily afford to pay a few thousand employees a few extra thousand dollars a year. Walmart employees 1.4 million people, let's say a whopping quarter of them are underpaid, which even being Walmart is grossly over-inflated. The difference between $8/hour and $25,000/year is $8,360. $8,360 times 350,000 employees is just under $3 billion, which still leaves Walmart with over $14 BILLION in profit.
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Wal-Mart Company Statistics | Statistic Brain
Walmart has 2 million employees world wide. If they increased each employees pay by $8,360 that would be $16,720,000,000 per year. That is more than the amount of Walmarts profit per year. Unless I am doing my math wrong (I am bad in that subject), or the amount of $8,360 is not correct (I did not check it myself) than it would not be sustainable to raise wages that much unless they rose prices accordingly.