Wal-Mart: The High Cost of Low Price



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Topic: Politics > Politics-USA
User: "Tuttles Almanac"
Date: 18 Nov 2005 09:40:49 PM
Object: Wal-Mart: The High Cost of Low Price
A Debate: Does Wal-Mart Work or is it a High Cost for Low Price?
http://www.indybay.org/news/2005/11/1784404.php
On Thursday, more than 120 workers were arrested in a raid
by Immigration and Customs Enforcement agents in Butler Township
Pennsylvania.
The raid took place at the construction site of a million-square-foot
Wal-Mart distribution center.
Wal-Mart has blamed a subcontractor for hiring the undocumented workers.
But critics of Wal-Mart - the world's largest retailer -
say this is standard fare for a company that tries to cut corners
in order to lower its costs and expand its profit.
In March Wal-Mart agreed to pay an $11 million settlement after
immigration agents raided 60 stores and arrested 245 individuals
working illegally.
Last month the New York Times obtained an internal Wal-Mart memo that
proposed the company curtail spending on employee benefits while
minimizing damage to its public image.
The Times reports the recommendations include hiring more part-time
workers, reducing retirement contributions and discouraging unhealthy
people from applying for positions.
The memo also acknowledged the company is already in a delicate
position because 46 percent of the children of Wal-Mart employees
are uninsured on or Medicaid.
Wal-Mart's labor practices are also criticized in a new documentary
released this month titled "Wal-Mart: The High Cost of Low Price"
by Robert Greenwald.
To combat this wave of negative publicity, The New York Times reports
Wal-Mart has set up a public relations war room staffed with former
Republican and Democratic presidential advisers. The Times writes
"When small-business owners or union officials... criticize the
company, the war room swings into action with press releases,
phone calls to reporters and instant Web postings."
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