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Price Check
KXAN-TV (TX)
April 28, 2006
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Every time you go shopping, you could
be getting overcharged and not even know it. Electronic checkout
scanners are not always accurate. KXAN NBC Austin decided to put them to
the test. Our Chris Willis went shopping with a hidden camera and found
out you could be getting ripped off.
The checkout scanner is a device that
makes your life easier, but at what price?
"Sometimes, there's actually a price
tag on the item, and then of course, there's the scanned price," Better
Business Bureau Vice President Erin Jones said.
Trillions are spent each year in
retail stores. Electronic scanners tally most of that money.
So the question is: do you trust them
with your money? Maybe you shouldn't.
Thanks to budget cuts from the 2003
Legislature, nobody is keeping regular tabs on the accuracy of checkout
scanners.
We found that people are getting
ripped off.
So we decided to check them for you.
We took our undercover cameras to big box retailers and grocery stores
in Central Texas.
What we found may surprise you because
if we're being taken, the odds are so are you.
Clearance items can really cost you.
"On sale" can really mean a sneaky full price. You're about to see who's
watching out for your bottom line.
Stephen Pahl is the Regulatory
Programs Branch Chief for the Department of Agriculture.
"The scanner itself doesn't cause the
inaccuracy because it's just a device that scans something, and it spits
out the price it has scanned," Pahl said.
It's his job to make sure you're
paying the right price, but lawmakers cut his random scanner checks.
The agency now acts only when a
consumer complains.
"A program that we have to, you know,
deter those that may be a little unscrupulous," Pahl said.
Store managers don't usually allow our
cameras to come in and check things out so we used a hidden camera and
went shopping.
The first stop is the Wal-Mart on 183
and I-35. We went straight to the clearance rack, which is supposedly
where the best deals are, right?
We pulled a child's sweater set off
the rack, which was marked $9. On the big clearance aisle, we found a
halogen flood light for $3.
We also found a baseball batting glove
in the 50-cents clearance bin. We ended up paying more than 20 times
that price for the batting glove.
"Consumers may not be double-checking
their receipts," Pahl said.
But if you do double-check your
receipts, you could catch the blatant mistakes. We checked our receipts,
and we found mistakes.
Of the 18 items we purchased at the
Wal-Mart on 183 and I-35, three were scanned incorrectly, but the
overcharge was enormous.
The sweater set scanned at $13 -- an
overcharge of $4.
The halogen flood light scanned at
$7.47. That's an overcharge of $4.47.
Our deal of the day turned into the
biggest rip-off. The batting glove in the 50-cent clearance bin scanned
at $12.46. That's nearly 23 times the sale price. It's an overcharge of
$11.96.
Our 18 items totaled $70.62, which if
the scanner was accurate, should've been $50.19. It was an overcharge of
$20.43.
"There are many different places where
pricing is shown," Jones said.
The Better Business Bureau says
they're not flooded with scanner complaints because they believe
consumers don't even know they're being overcharged.
"In Texas, they have about an
85-percent accuracy rate," Pahl said.
It was better, but still inaccurate
when we took our hidden cameras to the grocery store.
We looked for items specifically
marked "on sale" at the Fiesta on I-35. Of the 12 items we purchased,
one was incorrect.
The Zip Lock bags marked "on sale" at
$2.49 scanned at $2.69.
It was a 20-cent difference. If it
happened to us, it likely happened to the thousands of other shoppers
that day, and that can add up to huge profits for them and money out of
your pocket.
"We just don't tolerate that here in
Texas, so it's a zero tolerance in Texas," Pahl said.
It's fair to mention, we also went to
Randalls, H-E-B and Target.
Their scanners got it right.
Wal-Mart sent us this statement, "We
stock hundreds of thousand of items and can make more than 5,000 price
changes per week. We strive for 100 percent price accuracy. We do audit
our stores to make sure our pricing is as accurate as possible."
This is a problem you, the consumer,
have complete control over. Check your receipt. Match it with the sale
prices.
If you are overcharged, you can call
1-800-TELL-TDA . They move quickly and will get out to check the
scanners immediately.
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Wal-Mart
turning up heat on reluctant politicians
By Emily Kaiser
Reuters
April 27
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EVERGREEN PARK, Ill., - One block
outside Chicago's city limits stands a new Wal-Mart store that may be
the retailer's most powerful weapon in a long-running effort to quell
big-city opposition to its expansion.
Stung by resistance to new stores in
Chicago, New York and Los Angeles, Wal-Mart Stores Inc. <WMT.N> is
countering with a stern message for city leaders -- turn us down and
we'll go to neighboring suburbs, taking jobs and tax revenue with us.
In Evergreen Park, just outside
Chicago, Wal-Mart boasts that 25,000 people applied for 325 available
jobs. The few who were hired call themselves "The Chosen Ones."
Nearly all the applicants listed
Chicago home addresses -- much to the dismay of Chicago Alderman Howard
Brookins Jr., who lobbied unsuccessfully for a Wal-Mart store in his
nearby South Side district. The Evergreen Park location opened just 18
months after Chicago rejected the South Side store.
"We are losing a whole hell of a lot
of revenue, and there is no answer to that," said Brookins, who recently
visited the Evergreen Park store and estimated that three-quarters of
the cars parked in the lot had City of Chicago stickers, indicating they
belonged to city residents.
"It would be one thing if, when
Chicago said no, people from Chicago weren't shopping at those stores,"
he said. "If you can't stop them (from shopping there) then the best
thing to do is at least keep some of that tax base in Chicago."
Analysts say the Evergreen Park store
could be the most important location in Wal-Mart's 3,800-store U.S.
chain if it makes city leaders think twice about rejecting Wal-Mart.
"It accomplishes two great things --
it develops a very profitable store, and it sends a strong message to
other cities as to what Wal-Mart's approach is going to be if they
decide to be obstinate," said Darrell Rigby, head of the global retail
practice for consultants Bain & Co.
Wal-Mart is nearing saturation in the
smaller markets where it got its start, so growth increasingly depends
on gaining access to urban areas.
But moving into big cities puts the
retailer face-to-face with its biggest critics, which include labor
unions, anti-sprawl groups and environmentalists who contend that Wal-Marts
drive local competitors out of business, depress wages and benefits
across the retail sector, and damage the environment.
Some on Wall Street have called on
Wal-Mart to slow down from its typical 8 percent annual square-footage
growth, noting that the return on investment has been falling in the
United States. Wal-Mart insists that returns are improving now, and it
has more than 1,000 new stores in the pipeline.
JOBS AND TAXES
Wal-Mart CEO Lee Scott has taken every
opportunity to tout the Evergreen Park store, where he said sales were
"exceeding our wildest expectations."
At the National Governors Association
meeting in February, Scott hammered home the jobs message in a speech to
state leaders, who have not always welcomed Wal-Mart with open arms.
He said the retailer wanted to build a
store on Chicago's underdeveloped South Side, "but the local aldermen
would have none of it. So Evergreen Park, just outside the city limits,
welcomed us in."
He mentioned the 25,000 applicants and
added: "Those men and women needed jobs. And they wanted Wal-Mart jobs."
The message appears to have gotten
through.
Arkansas Gov. Mike Huckabee, a
Wal-Mart proponent and chairman of the governors association, said he
has spoken to several of his peers who had reservations about Wal-Mart,
but were reluctant to oppose the retailer for fear of losing out on the
jobs and tax revenue.
Wal-Mart is the largest U.S.
private-sector employer with more than 1.3 million workers, which gives
it plenty of political clout. But it has also come under fire because
thousands of its employees receive government-funded Medicaid, putting
major strain on state budgets.
Indeed, opponents say that much of the
tax benefit from Wal-Mart stores is used up by the Medicaid expenses and
costs for increased policing to address shoplifting and other crimes.
They also point to economic studies that show Wal-Mart stores actually
reduce retail employment because some competitors go out of business.
NEXT STOP: NEW YORK
Evergreen Park Mayor James Sexton said
his village and school districts expect to receive $1.5 million this
year from sales and property taxes, making Wal-Mart the largest single
revenue source. He said security issues had been "nil" so far, and did
not require additional police.
"We're loving it," he said. "There was
some hesitation because of the union issues, but we had an agreement
with Wal-Mart from the beginning that it would be built from bottom to
top with local union trade people, and they upheld their promise on
that."
His village also requested and
received a red brick exterior, instead of the typical blue-and-gray
painted box. He said the store, which is smaller than the massive
Wal-Mart supercenters that carry a full line of groceries, was expected
to generate $70 million in sales this year.
Wal-Mart does not disclose sales data
for individual stores, but based on last year's store count and revenue,
the average store generated about $65.8 million in sales. The majority
of those stores were the larger supercenters, however.
A similar strategy is playing out in
other cities too. Wal-Mart highlights an Oakland, California, store
where 15,000 people applied for a few hundred jobs. The store is across
the bay from San Francisco, another pocket of Wal-Mart opposition.
In New York, Wal-Mart is getting ready
to open a store in suburban White Plains. New York City recently passed
an ordinance that would force Wal-Mart to pay more for health care, and
the retailer's efforts to build a store in the borough of Queens were
thwarted.
Wal-Mart spokesman Philip Serghini
said the White Plains store was not designed to make an impression in
New York City leaders, but would no doubt draw city residents. Some
3,000 people have applied for 350 jobs, he said.
© Reuters 2006. All rights reserved.
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Union Leaders Target Wal-Mart
By Joe Napsha
Pittsburgh Tribune-Review
April 27, 2006
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The nation's largest employers --
particularly Wal-Mart Stores --- should pay higher wages and offer
workers affordable health-care benefits without shifting that burden to
taxpayers, union leaders told supporters at a Pittsburgh rally
Wednesday. "Workers are rallying to urge Wal-Mart to start ... treating
their employees with respect and dignity. Despite $11 billion in profits
last year, Wal-Mart has 1.3 million people, and over 57 percent are not
offered affordable health care," Ron Lenhart, president of the United
Food and Commercial Workers Union Local 23 in Canonsburg, told about 80
union members and activists during a lunchtime rally at Mellon Square,
Downtown.
Wal-Mart workers who rely upon
state-supported health insurance programs are costing American taxpayers
about $1.4 billion every year, Lenhart claimed. The nation's largest
retailer is not alone in shifting health-care costs to the taxpayers
because other large corporations are doing it, he said.
Although Wal-Mart has responded to
critics by providing more health-care insurance plans for its employees,
Lenhart said "the new health plan simply makes more eligible employees
that can't afford their health care."
In response, Wal-Mart issued a
statement yesterday, saying it has expanded its $11 per month
health-care plan. Half of its work force will be eligible by Jan. 1,
2007, said Kelly Hobbs, a Wal-Mart spokeswoman. Seventy-five percent of
its workers already are covered by private insurance, whether it is
through Wal-Mart, a spouse, or their parents' plan, Hobbs said.
"America's working families must be
mystified by any group that would rally against an $11 per month health
plan, $3 prescription drug co-pays and expanded health coverage for
children," the Bentonville, Ark.,-based chain said.
The 30-minute rally was sponsored by
Change to Win, a coalition of seven international unions, six of which
split from the AFL-CIO during the past year. It is one of about 40
rallies that the union coalition is planned nationwide during its "Make
Work Pay" campaign.
The rally was followed with a Downtown
petition drive that gathered more than 650 signatures in support of
state legislation that would require large companies -- those with more
than 10,000 employees in Pennsylvania -- to pay at least 9 percent of
their payroll on health insurance.
The Pennsylvania HealthCare
Accessibility and Insurance Responsibility Act, known as the "fair
share" health-care bill, was introduced in the state House on April 3
and was referred to the insurance committee, which has yet to schedule
hearings.
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Unions Protest Wal-Mart
Health Care
Associated Press
2006-04-27
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Unions representing six million
workers rallied Wednesday in 35 cities from New York to Los Angeles to
protest what they called inadequate health-care coverage by Wal-Mart
Stores Inc., the nation's largest employer.
In Atlanta, about 50 to 60 people
gathered in a church. In Denver, about 200 people turned out. Only 14
showed up in El Paso, Texas, where organizers said they were unable to
get a city permit for a larger demonstration. In Cleveland, WKYC TV
reported dozens of protesters. Organizers said the totals were over 350
in Los Angeles and Portland, Ore., and around 100 in Pittsburgh.
The Change to Win labor federation of
seven unions, which broke away from the AFL-CIO last year to form the
nation's second largest labor group, said Wal-Mart epitomizes a business
model of low pay and benefits that harm the middle class. The AFL-CIO
has about eight million members.
"You can't really talk about these
issues without talking about Wal-Mart. Wal-Mart drags everybody down,
but they are not the only bad actor out there," said Carole Florman,
spokeswoman for Change to Win.
It is the federation's first national
rally targeting Bentonville, Ark.-based Wal-Mart and part of a broader
campaign called "Make work pay" aimed at raising living standards for
workers, she said.
Wal-Mart called the rallies a
political stunt that ignored the fact that it created 225,000 U.S. jobs
last year and provides career opportunities and above-average pay and
benefits for the retail sector. It also says it saves its customers,
including working families, about $2,300 a year.
"We are an economic engine. Wal-Mart
is good for the communities we serve," said company spokesman Dan
Fogleman. He added that Wal-Mart recently announced it would help small
businesses grow around 50 stores it plans in blighted urban areas.
The rallies were organized together
with WakeUpWalMart.com, a political campaign group started a year ago by
the United Food and Commercial Workers union to pressure the retailer to
raise pay and benefits and improve working conditions. The UFCW is part
of Change to Win.
Paul Blank, campaign director for
WakeUpWalMart.com, targeted Wal-Mart's health-care insurance, which he
said failed to cover 57 percent of its work force, or 775,000 employees.
That estimate is based on earlier Wal-Mart numbers, the group said.
Wal-Mart's own latest count from
February was that 615,000 employees, or 46 percent, were enrolled in
company health plans as of January.
The unions also cited an internal
Wal-Mart memo, which became public last fall, that said 46 percent of
the children of Wal-Mart workers were uninsured or on public health
care.
Wal-Mart has defended its health care
coverage and twice since October has announced improvements, including
shorter eligibility periods for part-time workers, coverage for their
children, lower premiums between $11 and $23 a month and reducing
prescription co-pays to $3 from $10.
The announcements reflect growing
outside pressure on the company, which was exhibited in the state of
Maryland recently. There, the state's legislature passed a law that
requires companies with more than 10,000 Maryland employees to spend at
least 8 percent of their payroll on employee health care or pay the
difference into the state's Medicaid fund.
The Change to Win federation is made
up of the carpenters' union, the laborers' union, the service employees,
the Teamsters, United Farm Workers, UFCW and UNITE Here.
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What's Online
Maybe the Heirs Aren't Apparent
By DAN MITCHELL
April 29, 2006
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THE watchdog group Public Citizen (citizen.org)
and the advocacy group United for a Fair Economy (faireconomy.org)
issued a report this week saying that 18 superwealthy families are
largely responsible for financing the lobbying campaign aimed at
repealing the estate tax; the Senate is scheduled to take up repeal next
month.
The families, worth $185.5 billion,
have financed and coordinated the campaign and have, until now, managed
to hide their participation behind the trade associations and business
groups they have formed to represent their interests, Public Citizen
reported. The families include those behind some of the nation's biggest
and best-known companies, like Wal-Mart, E.& J. Gallo Winery, Nordstrom
and Koch Industries.
In a news release presenting the
58-page report, available on its Web site, Public Citizen pulls no
punches. "This report exposes one of the biggest con jobs in recent
history," Joan Claybrook, president of Public Citizen, said in the
release. "This long-running, secretive campaign funded by some of the
country's wealthiest families has relied on deception to bamboozle the
public not only about who must pay the estate tax, but about how
repealing it will affect the country."
Several liberal blogs played the
report like a snare drum. A Daily Kos blogger, Chris Kromm, thinks it is
just the kind of issue that liberal politicians should use to appeal to
Middle America. "This is a perfect issue for Southern progressives," he
writes. "Half of the superrich families are based in or have close ties
to the South."
Conservative bloggers have largely
ignored the report — according to search results on technorati.com —
though opponents of the estate tax have offered retorts in the comments
sections of several blogs. "So what?" asks someone on the TaxProf Blog.
"Or is the thesis that only wealthy liberals like Soros and Peter Lewis
are allowed to participate in politics in the United States?"
THE BEST REVENGE Down several steps
from the superrich dwell those whose finances are judged more by yearly
income and spending than by wealth. These are people who "live well,"
according to Forbes.com. And they spend at least $277,342 a year in
Chicago. In New York City, a family of four isn't living well unless it
spends $483,775. In Wichita, Kan., it's $189,305.
Forbes lists several criteria for good
living through spending, including: owning a BMW and a Lexus; private
schools; regular meals at upscale restaurants; a weekend home; and three
vacations a year with stays at places like the Ritz.
"We are not talking about great
riches," Forbes.com explains. "There are millions of Americans who work
hard to be able to afford the best for their families — and themselves —
but who don't entertain notions of owning private jets, sprawling
country estates or closets full of the latest fashions. Their goals are
more grounded: a good education for their children, a nice house, a
weekend place, the occasional trip, a night out once a week and a little
money in the bank.
For a little perspective, Forbes.com
offers this: "Of course, these numbers are estimates. You certainly can
live for less — or for far more. Take a two-week rental instead of
buying a summer home, send your children to public schools or dine at
home every night, and you will need to earn less money."
Copyright 2006 The New York Times
Company
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Young Faces
Critics Over Backing of Wal-Mart
By Marilyn Geewax
Atlanta Journal-Constitution
April 25, 2006
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WASHINGTON — The Rev. Joseph Lowery
and dozens of other civil rights and religious leaders are signing a
letter that condemns former Atlanta Mayor Andrew Young for his work
defending Wal-Mart Stores Inc. The letter, which could still undergo
some minor changes before being released today, said Wal-Mart has a
"history of breaking child labor laws" and engages in "unethical"
business practices. The company now is using Young "to try to turn our
eyes from the truth," it says.
Young, in his own letter to church
officials released Monday, praised Wal-Mart for allowing poor people to
be able to buy "low-cost fruits, vegetables, vitamins, medicines and
clothing."
Since February, Young has been serving
as chairman of the steering committee for Working Families for Wal-Mart,
a group that defends Wal-Mart's business practices.
The letter invokes the name of the
Rev. Martin Luther King Jr., the revered civil rights leader who worked
closely with Young during the height of the movement in the 1960s.
"Dr. King would have disagreed with
Mr. Young on this issue — King sided with the poor," says a passage from
the Rev. Jeremiah Wright, pastor of Trinity United Church of Christ in
Chicago. "Young is taking a stand against the poor and is siding with
the filthy rich who are oppressing the poor."
Young himself is a minister with the
United Church of Christ, whose officials initiated the letter, according
to Ron Stief, who heads the church's Justice and Witness Ministries.
Stief said Monday the final version of
the letter would be sent to Young this morning. It will be released to
the media later in the day.
John Thomas, general minister and
president of the United Church of Christ, has already sent a private
letter to Young, Stief said.
The church cannot order Young to
change his position on Wal-Mart. Stief said the purpose of both the
private and public letters is to ask Young: "What are you doing
defending a company that has done more to hurt working people than any
other company?"
Among those who signed the letter were
Lowery, another Atlanta-based minister and civil-rights-era leader.
Stief said the final version of the letter will have about 50 names
attached, including a number of clergy members from the United Church of
Christ, the United Methodist Church, the Catholic Church, the Episcopal
Church, Jewish groups and others.
The letter quotes Lowery, former head
of the Southern Christian Leadership Conference, saying he is
"disappointed" that Young "has chosen to defend the wayward ways of
Wal-Mart."
Working Families for Wal-Mart was
launched with Wal-Mart's funding in December. Last week in Rogers, Ark.,
just a few miles from Wal-Mart's headquarters, Young chaired the first
meeting of 10 members of the group's steering committee, made up of
business and community leaders who support Wal-Mart.
Young's consulting firm has a contract
for an undisclosed sum with the group. His responsibilities include
writing opinion articles and speaking with reporters about Wal-Mart's
positive impacts on low-income people.
On Monday, committee spokesman Kevin
Sheridan released a letter that Young already had composed and is
planning to send to officials of the United Church of Christ to explain
his position. Quoting from the gospel of Matthew, Young points out that
Jesus Christ admonished his followers to feed the hungry. Young said
that has always been his goal as well.
He said that while Wal-Mart may be
"far from perfect," it has provided low-priced goods and foods for poor
people. He said Wal-Mart critics are misguided. "After failing to get
the government to address a social safety net, they are criticizing
Wal-Mart for failing to provide it," he wrote.
Besides being an ordained minister,
Young is a civil rights leader and former congressman, United Nations
ambassador and Atlanta mayor.
After last week's steering committee
meeting, Young released a statement noting that Wal-Mart plans "to build
more than 50 stores in struggling urban areas, expecting to create up to
25,000 jobs in areas desperately needing employment."
"Even as a lifelong Democrat and union
supporter, I have to say it's time for Washington, D.C., union leaders
to let working families decide where to shop and work," he said in his
statement.
A copy of the letter to Young was
provided by Wal-Mart Watch, a union-supported group that pushes Wal-Mart
to change its business practices. Spokesman Nu Wexler said that William
Jarvis Johnson, Wal-Mart Watch's director of Faith Based Outreach, is
among those signing the letter.
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Faith
Leaders' Letter Condemns Young for Wal-Mart Role
By Errin Haines
Associated Press
April 25, 2006
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ATLANTA - Dozens of faith leaders from
across the country have signed a letter condemning former civil rights
leader Andrew Young for representing Wal-Mart, saying his role with the
company contradicts the philosophy of his close friend and comrade,
Martin Luther King, Jr. "It is imperative that those of us who worked
closely with Dr. King and who have followed in his footsteps tread
carefully as we ponder our actions when interacting with Wal-Mart
Stores, Inc. and taking into account its harmful effects in our
communities," reads the letter, signed by nearly 60 members of various
religious groups, including the United Church of Christ.
Young, himself a minister, was
ordained under the denomination and is a lifelong member of the church.
Among those opposing his alliance with Wal-Mart is the Rev. Joseph
Lowery, who served alongside Young and King in the Southern Christian
Leadership Conference during the civil rights movement.
"I am disappointed that he has chosen
to defend the wayward ways of Wal-Mart," Lowery is quoted as saying in
the letter. "I thought that he was seeking to help them change and
become a positive force, not to justify their negatives with 'voodoo'
economic theories and excuse their practices which swell the ranks of
the working poor here and abroad."
Young has come under fire recently
from Lowery and others in the civil rights community after his company,
GoodWorks International, was hired earlier this year by Working Families
for Wal-Mart to promote the world's largest retailer. Young's company,
which he has headed since 1997, works with corporations and governments
to foster economic development in Africa and the Caribbean.
He has said his role in civil rights
has changed from marching and protesting to championing economic
opportunity. Before starting GoodWorks, Young was a two-term mayor of
Atlanta, congressman and United Nations ambassador. He helped bring the
1996 Summer Olympic Games to Atlanta, along with millions of dollars and
thousands of jobs.
Young was not immediately available
for comment, but GoodWorks spokeswoman Magdalene Womack said Tuesday
afternoon the company had received the letter, which was sent via fax to
GoodWorks offices in Atlanta, Washington and New York.
"We will address it in writing,"
Womack said.
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Wal-Mart seeks
to 'organize' labor its own way
But some employees
are irked that the plan could 'turn their lives upside down' if it
replaces steady shifts with rotating schedules.
By Parija Bhatnagar,
CNNMoney.com
April 25, 2006
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NEW YORK (CNNMoney.com) - A group of
Wal-Mart employees from Pensacola, Florida say their lives will be
turned "upside down" if the retailer implements a new scheduling policy
that would require workers to adapt to shift rotations instead of
maintaining long-term steady shifts.
At issue is the concept of flexible
scheduling, which Wal-Mart (Research) has been testing in a few of its
stores over the past year, although the company says it hasn't tested
that schedule in Pensacola.
In an anonymous letter to CNNMoney.com,
the Wal-Mart workers said such a "flip-flop open-availability" system
would "create chaos and instability" in workers' lives.
"While working an ever-changing
Wal-Mart schedule, how can one arrange day care for young children? The
scheduling will make continuing education extremely difficult," the
letter said.
However, industry experts say many
retailers over the years have migrated to flexible hours scheduling
because of its inherent benefits to both employees and customers.
The workers allege that the policy is
designed to force higher-paid full-time workers to reduce their status
to part-time, or quit (and be replaced with part-time workers), since
this would save Wal-Mart "enormous amounts of money from reduced
salaries and benefits paid."
Moreover, the letter claims that work
schedules will be computer-generated based on each department's sales.
Sales will determine the number of associates and hours assigned to each
department, and the schedule associates work. The only set schedules are
apparently for department managers and "stocking teams."
When asked by CNNMoney.com about the
employees' letter,Wal-Mart spokesman Dan Fogleman saidemployees in
Pensacola are not currently affected by the pilot tests. "The current
staff scheduling system has been in place there for over 10 years."
He also denied that Wal-Mart was
testing "open availability," in any of its stores. "We're definitely not
testing open availability. We do solicit input from associates about
when they are available. So if someone is taking a class, they can tell
their manager about it and the schedule can be adjusted to accommodate
them," he said.
However, the company is making changes
at the Pensacola store so it will have more sales staff on evenings and
weekends. "The reality of retail is that the busiest times are evenings
and weekends in this market," Fogleman said. "We're trying to develop an
optimal schedule that would best serve our customers. In order to ensure
there are appropriate number of employees to serve those customers,
we're asking associates that work daytime schedules to be more
flexible."
Battling turnover trauma As the
nation's biggest private employer with 1.3 million workers, Wal-Mart
suffers one of the highest worker turnover rates in the industry, said
Burt Flickinger, managing director with retail consulting firm Strategic
Resources Group, who cited his firm's own research.
Flickinger said Wal-Mart is cutting
hours for full-time employees and looking to hire more part-time workers
in a bid to trim both operating and healthcare costs - which can help
the bottom line but can also cut the other way, since high turnover and
lower staffing can mean lost sales, especially on busy weekends.
According to Wal-Mart executives, 75
percent of the company's workers in the United States are employed full
time, although that number has been trending down gradually.
"For busy parents who stock up on baby
food and other items, if they can't easily find it in Wal-Mart, they
don't have time to go back. They'll just go to the competition," said
Flickinger, noting that Saturday and Sunday account for about 40 percent
of Wal-Mart sales each week. "It's critical for Wal-Mart stores to be
fully stocked and have experienced staff on weekends," he said.
Wal-Mart spokesman Marty Heirs
acknowledged the high turnover and said Wal-Mart was taking steps to
address it.
"Most retailers have very high
turnover rates, but we would like to keep our associates," Heirs said.
"We're already doing a few things like reducing the waiting time for
employees to quali |