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walmart subsidy watch.org

WALMART ALERT


Wal-Mart's Healthcare Cost To Taxpayers By State


wakeupwalmart.com

 
walmartwatch.com

sprawl-busters.com

walmartworkersrights.org

warnwalmart.org

walmartwork.org

walmartsurvivors.com

indiafdiwatch.org

lawmall.com/wal-mart

livingeconomies.org

amiba.net

newrules.org

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VIDEOS


Wal-Mart: The High Cost of Low Prices

(walmartmovie.com)

Independent America:
The Two Lane Search
for Mom & Pop
(independentamerica.net)

Big Box Mart
(jibjab.com

Garth Brooks Parody (walmartworkersrights.org)

"Is Wal-Mart Good for America?"
Frontline, PBS Video,
www.pbs.org

The Labor Video Project Fighting Wal-Martization

«
BOOKS

The Case Against Wal-Mart
By Al Norman Raphel Marketing ruth@raphael.com:

Wal-Mart: The Face Of Twenty-First Century Capitalism
Edited By Nelson Lichtenstein
The New Press www.thenewpress.com

The Great Risk Shift:
The Assault on American Jobs, Families, Health Care and Retirement
By Jacob S. Hacker
Oxford University Press www.oup.com

War On The Middle Class:
How the Government, Big Business, and Special Interest Groups Are Waging War on the American Dream and How to Fight Back
By Lou Dobbs Viking,
a member of Penguin Group www.penguin.com

Momentum: Igniting Social Change in the Connected Age
By Allison H. Fine Jossey-Bass www.joseybass.com:

Big-Box Swindle:
The True Cost of Mega-Retailers and the Fight for America's Independent Businesses
By Stacy Mitchell,
www.beacon.org
 www.newrules.org

Wal-Mart: The Face Of the Twenty-First-Century Capitalism Edited by Nelson Lichtenstein 
by The New Press www.thenewpress.com

The Bully Of Bentonville
How the high cost of Wal-Mart's Everyday Low Prices is Hurting America
By Anthony Bianco
by Doubleday  specialmarkets@randomhouse.com

How Wal-Mart Is Destroying America (and the World),
By Bill Quinn,
www.tenspeed.com

The United States of
Wal-Mart,
By John Dicker,
www.penguin.com

 Slam-Dunking Wal-Mart,
By Al Norman,
www.sprawl-busters.com

Nickel and Dimed,
By Barbara Ehrenreich, 
www.henryholt.com

Death By Discount,
By Mary Vermillion, 
www.maryvermillion.com

The Wal-Mart Effect
By Charles Fishman www.penguin.com

Megamall On The Hudson
By David Porter and
Chester L. Mirsky
www.trafford.com

«
STUDIES

Big Box Backlash
«
Alachua County Commission
«
Trip Generation Characteristics of Free-Standing Discount Supercenters
«
Shameless: How
Wal-Mart Bullies Its Way Into Communities Across America Study

«
What Do We Know About Wal-Mart? 
«
The Wal-Mart Game
«
The Shils Report
«
PBS Frontline Report
Is WalMart Good For America?

«
Bakersfield Ruling
«
Bakersfield Report
«
momandpopnyc.com
momandpopnyc.blogspot
«
UC Berkeley Labor Center
The Hidden Cost of WalMart Jobs

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Northern California Big Box Studies 
«
Radio Broadcast
Past Radio Shows
«
The EEOC will hold the companies like Wal-Mart accountable for violating
the Americans With Disability Act. 

read more

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«CURRENT ARTICLES

 Article Date Published Newsource
RWDSU President Slams Wal-Mart Hypocrisy Jun 27, 2008 Earth Times
Study: Bennington Wal-Mart would hurt other businesses Jun 26, 2008 By AP,
Rutland Herald
Wal-Mart sued by customer in premises liability complaint Jun 25, 2008 By Steve Gonzalez,
The Madison St. Clair Record
Anadarko family sues Wal-Mart for developing child porn Jun 25, 2008 KSWO
August hearing set for former Wal-Mart executive Jun 24, 2008 Associated Press
Wal-Mart spin is thick with lies Jun 24, 2008 By David Fick,
Hi Desert Star

Naked Truth Investing: Wal-Mart customers 'save money' and 'live better' while Wal-Mart employees pay more for their 401(k) plan and retire broke

Jun 24, 2008 By Daniel Solin ,
Blogging Stocks
Size of Northcross Wal-Mart Drastically Reduced Jun 24, 2008 Austin Business Journal
Whole Foods and Wal-Mart Execs Agree: We’re Not Green Jun 23, 2008 By Lisa Everitt ,
B Net
Local News for Northwest Arkansas Jun 23, 2008 By Kimberly Morrison,
The Morning News
Mother's Lawsuit Blames Wal-Mart for Premature Birth Jun 21, 2008 FoxNews.com
Like Clock Work: Wal-Mart Faces 80 Class Actions, Most from Off-The-Clock Allegations Jun 21, 2008 By Kimberly Morrison,
The Morning News
Wal-Mart plans IT back office in Bangalore Jun 20, 2008 By Boby Kurian
& PP Thimmaya,
Economic Times
SmartCare closes 15 Wal-Mart med clinics, Jun 20, 2008 By Joyzelle Davis
Rocky Mountain News
Companies deny breaking pledges Jun 19, 2008 By He Huifeng ,
So China Morning Post
Woman sues after Wal-Mart worker fell off ladder and hit her Jun 19, 2008 By Cara Bailey,
The West Virginia Record
Wal-Mart Recalls More 'Hip Charm' Key Chains Jun 19, 2008 Consumer Affairs
Moms Win Battle Against Wal-Mart Jun 19, 2008 WESH
Adidas Poised to Win $1.60 a Share on Wal-Mart Copycat Sneaker Jun 17, 2008 By Erik Larson,
Bloomberg
Wal-Mart cuts capital expenditure forecast Jun 17, 2008 By Nicole Maestri,
Reuters
Wal-Mart lowers 2009 capital spending forecast Jun 17, 2008 Mae Anderson
Associated Press
Wal-Mart readies for overseas expansion Jun 17, 2008 By Elizabeth Rigby
and Jonathan Birchall
Financial Times
Police investigate sale of tigers in Wal-Mart parking lot Jun 15, 2008 By Ryan Holeywell,
The Monitor
Wal-Mart Supercenter a badly done deal Jun 14, 2008 By David Fick ,
Hi Desert Star
Dubai World subsidiary gets Wal-Mart firm Jun 14, 2008 The Times and Democrat
Wal-Mart opponents collect enough signatures for ballot measure Jun 13, 2008 By Donald Murphy,
San Luis Obispo County Tribune
Recall effort hit with order Jun 13, 2008 By Danny Bernardini
Woman wins Wal-Mart lawsuit Jun 12, 2008 By Aimee Green,
The Oregonian
Wal-Mart opponents say supercenter would harm North Tonawanda Jun 12, 2008 By Bill Michelmore,
News Niagra Bureau
Oakley bans supercenters Jun 12, 2008 By David Goll ,
East Bay Business News
Brookfield Wal-Mart overcharges for sales tax Jun 12, 2008 Kirksdale Daily Express
Wal-Mart, Toys R Us to remove products with BPA Jun 11, 2008 By James Bernstein,
Newsday
Logan woman says she was wrongly fired by Wal-Mart Jun 11, 2008 By Cara Bailey,
The West Virginia Record
TSU student jailed on bogus Wal-Mart forgery charge Jun 11, 2008 By Jeremy Desel ,
khou
EPA fines Springs company Jun 10, 2008 By R. SCOTT RAPPOLD,
Colorado Springs Gazette
Wal-Mart will pay $250,000 to disabled woman it fired Jun 10, 2008 By Laura McCandlish ,
The Baltimore Sun
Wal-Mart Supercenter has opposition in West Dundee Jun 10, 2008 By Robert Channick ,
Chicago Tribune

No smiley faces at Levy Wal-Mart

Jun 10, 2008 By DJ Smith ,
Dogtown Wire

Wal-Mart sued for improperly assembled bicycle

Jun 10, 2008 By Ann Knef ,
The Madison Record
Wal-Mart Wars: Too high a price to pay Jun 8, 2008 By Elise Schmitz,
Milwuakee Journal Sentinel
Wal-Mart Reaches Out to Candidates, Congress Jun 7, 2008 By GARY MCWILLIAMS
and ANN ZIMMERMAN,
Wall Street Journal
Ex-exec Coughlin accuses Wal-Mart of 'witch hunt' Jun 6, 2008 Associated Press
Group defers Wal-Mart decision Jun 6, 2008 By Chris Rhatigan,
Iowa City Press-Citizen
Walmart.com shoppers beware Jun 6, 2008 By Deborah Gage ,
San Francisco Chronicle
Wal-Mart: from zero to hero? Jun 6, 2008 By James Thompson ,
The Independent
Muskego group plans recalls over Wal-Mart Jun 6, 2008 By Emilie Rusch,
Milwuakee Journal Sentinel
Ontario Wal-Mart plans still tied up in court Jun 6, 2008 By Andrea Bennett,
San Bernadino County
Wal-Mart benefits from new merchandising focus Jun 6, 2008 By CHUCK BARTELS and
ANNE D'INNOCENZIO
Associated Press
Wal-Mart keeps low-price mantra going at meeting Jun 6, 2008 By ANNE D'INNOCENZIO
AND CHUCK BARTELS
Associated Press
Wal-Mart To The Rescue Jun 6, 2008 Tim Pollak
and Marc Babej
Wal-Mart's international business borrows from US Jun 6, 2008 By ANNE D'INNOCENZIO
Retail giant to slow growth Jun 5, 2008 By Josh Dulaney,
San Bernardino County
Proposed Wal-Mart for Soledad slammed Jun 5, 2008 By Claudia Meléndez Salinas,
Monterey County Herald
Two Proposed Wal-Mart Sites Find Opposition Jun 5, 2008 WISN Milwuakee
Ontario Wal-Mart plans still tied up in court Jun 5, 2008 By Andrea Bennett,
The Sun
Wal-Mart's Detractors Come In From the Cold Jun 5, 2008 By Michael Barbaro,
The New York Times J
Wal-Mart opponents speak up in W. Dundee Jun 4, 2008 By Larissa Chinwah,
Daily Herald
Sandbags and Machine Guns At Wal-Mart Jun 4, 2008 By Al Norman,
The Huffington Post
Yahoo in deal to sell online advertising for Wal-Mart Jun 4, 2008 Associated Press
Wal-Mart enters online classified advertising Jun 3, 2008 Associated Press
Wal-Mart Sets Out To Kill The Newspaper Industry Jun 3, 2008 By Douglas A. McIntyre,
24/7 Wall Street

Candlsense warmers pose fire hazard

Jun 3, 2008 The Morning Call
Accused Wal-Mart Shooter's Case Continued Jun 2, 2008 By Heather King,
WITN News
Shareholders rap Wal-Mart on labour policy Jun 1, 2008 By Hugh Wheelan,
The Observer
Wal-Mart: A Year In Review Jun 1, 2008 The Morning News
RWDSU President Slams Wal-Mart Hypocrisy

Earth Times
June 27th, 2008
                 
 [back to top]

The president of the Retail, Wholesale and Department Store Union today blasted the announcement by Wal-Mart that it would notify its employees about the Earned Income Tax Credit (EITC) and challenged the giant retailer to take similar steps to notify workers of their legal right to organize for union representation.

RWDSU President Stuart Appelbaum, whose union has led efforts to prevent Wal-Mart from opening in New York City, said that "rather than encourage employees to sign up for a tax credit for low income workers, Wal-Mart ought to respect the right of workers to a union contract and middle-class wages."

"If hypocrisy was an Olympic sport Wal-Mart would hold the record for gold medals," Appelbaum said, adding that the company, whose revenues now top $300 billion, has "ruthlessly fought every effort by workers to organize."

Pointing out that Wal-Mart officials said they would inform workers about the EITC through its internal Web site, messages on pay stubs, and notices in store break rooms, Appelbaum said the retail giant should use the same means to inform its employees of their legal right to organize for union representation.

"Since none of Wal-Mart's executives seem to understand that workers actually have the legal right to organize I'm more than happy to send them a copy of the law," Appelbaum said.

With more than 100,000 members working in the retail sector and other industries, the RWDSU is an affiliate of the United Food and Commercial Workers union.

 [back to top]


Study: Bennington Wal-Mart would hurt other businesses

By AP,
Rutland Herald
June 26th, 2008                 
[back to top]

Doubling the size of Bennington’s Wal-Mart store would provide short-term growth of about 75 new retail jobs, but would trigger-long term job losses at it hurt local businesses, a new economic study has found.

Economic consultants Kavet, Rockler & Associates said construction costs on the expansion project would be about $16 million, and that sales would be expected to more than double, to about $48 million in the first year of the bigger Wal-Mart’s operations.

But it said, “Most of the expanded store’s growth will come at the expense of existing stores in the served market area, with some impact on downtown but even more on commercial areas north of the town center.

On the jobs front, the report said, “In 2009, operation of the expanded store will generate a total of about 78 jobs, mostly in the retail trade sector. Total county employment impacts over the longer term, however, shrink to zero by 2013 and ultimately decline by about 35 jobs,” the report states.

The report estimates that 10 to 15 percent of the existing downtown businesses are likely to be hurt by the Wal-Mart expansion, including those selling clothing, beauty and hair products, sporting goods, electronics, eye wear and home and hardware goods. It added that empty storefronts may remain so for longer periods.

The Wal-Mart expansion, proposed by store owner BLS Bennington, LLC, would roughly double the current store’s size to 112,000 feet. It has been hotly debated in town for years.

The town passed a cap on the size of retail stores at 75,000 feet, only to have residents overturn it in a special election in April of 2005.

The town granted permits for the project in January of 2006; it’s now before the District 8 Environmental Commission.

 [back to top]


Wal-Mart sued by customer in premises liability complaint

By Steve Gonzalez,
The Madison St. Clair Record
June 25th, 2008                                     
[back to top]

A woman who was injured at the Highland Wal-Mart filed a personal injury suit against the retailer in Madison County Circuit Court June 23, alleging the property was not kept in a reasonably safe condition. Maureen Neal claims she was at the Wal-Mart on Nov. 5, 2007, for the purpose of assisting one of her students in unloading merchandise from a Wal-Mart trailer when one of the trailer doors swung closed on her leg and foot without warning. Neal claims Wal-Mart owed her a duty to exercise ordinary care to see that its property was reasonably safe for the use of those lawfully on the property. Despite that duty, Neal alleges Wal-Mart was negligent by failing to properly secure the trailer doors and failed to warn or otherwise notify her that the trailer doors were not secured. She claims the incident has caused and will continue to cause her to incur medical expenses, lose income, sustain pain and suffering and suffer from a disability. Represented by Joseph Hillebrand of Kassly, Bone English & Hillebrand in Belleville, Neal is seeking a judgment in excess of $100,000, plus costs. The case has been assigned to Circuit Judge Daniel Stack.

 [back to top]


Anadarko family sues Wal-Mart for developing child porn

KSWO
June 25th, 2008                       
[back to top]

Anadarko_The man accused of a horrible case of child abuse, child pornography, and incest, will likely spend the rest of his life in prison for the crimes, and the victims' family wants one of the world's largest corporations to pay for not reporting his disgusting actions. The victims' family says the Wal-Mart store in Anadarko developed hundreds, possibly thousands, of child pornography photos of the victims before ever calling police. The two victims from Anadarko are sisters - 13 and 17 years old - and earlier this year their great uncle pled guilty to abusing and taking pornographic photos of them. Police learned about Robert Strange's horrible crimes after receiving a phone call in February from the Wal-Mart photo lab in Anadarko. The lab reported pornographic photos of the two victims, and it was later reported that they were not the first photos of that nature Strange had taken. "We found out that Wal-Mart, for a period of several years, had been developing the child pornography," says the victims' attorney, David Butler. Butler says Wal-Mart broke Oklahoma laws regarding child pornography. "If they see anything they even question to be child abuse or pornography, they're required to report that immediately to law enforcement," he says. "Obviously, that didn't happen in this case because it had been going on for two or three years." Butler says that Robert Strange may be one of his best witnesses, since he admits he took the photos and had Wal-Mart print them. "If it had been reported the first time it was brought in there, he could have been arrested the first time, and these girls would not have had to undergone the abuse they suffered for several more years," says Butler. Butler admits that taking on one of the world's largest corporate giants will be an uphill battle, but he says the two victims deserve it. "They have unlimited resources, and you know you're in for a fight, but we believe it's a valid fight, and we're willing to go the distance for our clients." The lawsuit is filed in Caddo County, and although Butler would not say just how much money the family is seeking, he says it's more than $10,000. 7News contacted Wal-Mart's legal department, and a spokeswoman there said that they have not received a copy of the lawsuit yet. However, they are beginning to research the matter after learning of the story.

[back to top]


August hearing set for former Wal-Mart executive

Associated Press
06.24.08                                       
[back to top]

BENTONVILLE, Ark. - A hearing is set for Aug. 22 over whether convicted former Wal-Mart executive Tom Coughlin is entitled to his retirement package valued at up to $15 million.

Coughlin, who was convicted of embezzling from the world's largest retailer, filed a counterclaim against Wal-Mart (nyse: WMT - news - people ), accusing the company of conducting a "witch hunt" against him. Coughlin, the former vice chairman of Wal-Mart Stores Inc., was sentenced to 27 months of home detention, plus 1,500 hours of community service. He also had to pay $400,000 in restitution.

In a response to Coughlin's counterclaim, Wal-Mart says the former executive is not entitled to his retirement package because he defrauded the company. Coughlin pleaded guilty in 2006 to five counts of wire fraud and one count of tax evasion.

The Bentonville-based retailer also denied Coughlin's claims that Wal-Mart committed a tort of outrage, causing him mental anguish.

Copyright 2008 Associated Press. All rights reserved

 [back to top]


Wal-Mart spin is thick with lies

By David Fick,
Hi Desert Star
June 24th, 2008                     
[back to top]

“Wal-Mart benefits people, environment” was the title of Mr. John Mendez’s Guest Soapbox Saturday.

Mr. Mendez, a senior manager of public affairs for Wal-Mart, starts his spin early with a fantasy engagement with me. I’ve heard enough “that’s a good question” to know what follows is usually not a good answer.

“As Mr. Fick stated,” he begins, and then proceeds to say things I never stated, showing his well-worn craft that makes him the big bucks.

Mr. Mendez states a new store is needed “because Yucca Valley’s population has increased almost two-thirds since the early 1990s.” Yet Wal-Mart’s own environmental impact report analysis says the 1990 YV population was 16,403 and 2005 YV population 19,726. That’s a 19 percent increase, hardly two-thirds!

Don’t people ever read these EIRs?

Also from the Wal-Mart EIR: “Utilizing employment factors … the proposed project is anticipated to generate approximately 589 jobs.” But Mr. Mendez in his Soapbox is, once again, saying something different, that Wal-Mart Supercenter plans to employ about 410 people (260 current, 150 new). That’s 410, not 589, underpaid, off-the-clock and videotaped people working for that big global company in Arkansas. What’s the truth here?

There’s a lot of tall-talking about Wal-Mart Supercenter and that’s all it is. Some dismiss it as spin, exaggerations or even falsehoods, but they do their job. Wal-Mart spends millions per day on public relations to impress people and send the profits along to Arkansas.

MBCA benefits people and the environment of the Morongo Basin without the lies and money. Instead, we fight with heart and truthful information.

Hope to see you tonight at Yucca Valley Community Center, before 6 pm.

David Fick
Morongo Basin Conservation Association

 [back to top]


Naked Truth Investing: Wal-Mart customers 'save money' and 'live better' while Wal-Mart employees pay more for their 401(k) plan and retire broke

By Daniel Solin ,
Blogging Stocks
June 24th, 2008                           
[back to top]

This is the part of a new series of columns called "The Naked Truth," by retirement expert Dan Solin. Please bring him your questions, in the comments box, and he will answer as many as he can. Wal-Mart (NYSE: WMT) is the world's largest company with over $380 billion in revenues. It's success is based on it ability to squeeze vendors to the breaking point. The largest manufacturers are no match for this retail giant. Wal-Mart's 401(k) plan has over $9.5 billion in assets. Its modestly paid employees count on this plan to fund their retirement. A recent class action lawsuit makes allegations which, if true, will cause many of these employees to be great disappointed. The suit alleges that Wal-Mart's 401(k) plan pays "retail" for its mutual funds, instead of the institutional rate for the same funds. Institutional funds require a minimum investment ranging from $100,000 up to $1 million. Clearly, not a big hurdle for Wal-Mart's mega 401(k) plan. The difference in cost between retail and institutional funds is significant. The average annual expense ratio for retail equity mutual funds is around 1.50%. The same expense ratio for an institutional fund is around 0.50%. A 1% difference in costs doesn't seem like much but it can add up. On an initial investment of $50,000, it could cost investors as much as $19,000 over 20 years, assuming an 8% rate of return. The failure to insist on lower cost institutional funds is not the only problem with Wal-Mart's 401(k) plan. It is populated with high expense ratio, actively managed funds, despite the fact that lower cost, actively manged funds, with similar benchmarks and better performance, are available from fund families like Vanguard. Yet even these obvious deficiencies still don't address the primary problem with the plan. Why are actively managed funds included at all? The plan should consist solely of low-cost, broadly diversified, domestic and international stock and bond index funds, and target retirement funds, made up of low-cost index funds. The complaint alleges that, if Wal-Mart had followed this practice, the plan would have increased in value by an additional $140 million for the six-year period ending January 31, 2007. Has Wal-Mart lost its negotiating mojo? Or has it succumbed to a flawed 401(k) system that places the interests of employers, brokers, consultants and the mutual fund industry above those of its employees? Dan Solin is the author of The Smartest Investment Book You'll Ever Read (Perigee Books 2006) and The Smartest 401(k) Book You'll Ever Read (Perigee Books, June 24, 2008). Visit his website at Smartestinvestmentbook.com

 [back to top]


Size of Northcross Wal-Mart Drastically Reduced

Austin Business Journal
June 24th, 2008                        
[back to top]

Wal-Mart plans to cut the size of its controversial store at Northcross Mall almost in half.

The retail giant already had city approval to build a 192,000-square-foot store on the site at Burnet Road and Anderson Lane. But now Wal-Mart says it will reduce the store's footprint to 99,000 square feet as part of a nationwide reevaluation of its new stores.

The planned store will now be just one story instead of two and will have surface parking in lieu of a garage. Groceries will remain part of the merchandise mix but a garden center and auto shop will be eliminated in the new plan, a spokesperson says. The design aesthetic of the building will remain largely intact. Construction has not yet begun on the store since developer Lincoln Property Co. has been concentrating its attention on another portion of the site.

Since the plan was unveiled in late 2006, Lincoln Property Co., the group redeveloping the aging mall, and Wal-Mart have drawn fire from area residents who said the store would create tremendous traffic problems in the area among other issues. Several lawsuits were filed but none was successful in stopping the development.

Lisa Elledge, senior manager of public affairs and government relations for Wal-Mart says the company is currently working to complete the modifications to the store. She says once Wal-Mart and the developer "have finalized the site plan...the parties intend to provide more details to the city of Austin and the surrounding neighborhoods."

Responsible Growth for Northcross, a group of area residents and business owners that formed to oppose the Wal-Mart plan, said the scaled back store is a better fit for the neighborhood. RG4N had been planning to appeal its lost lawsuit decision, but the group now says that won't be necessary.

"We still think a mixed-use development is the ideal (use) for that location, but at least their new plan is something that can work without hurting the surrounding neighborhoods and small businesses," says Hope Morrison, RG4N's president.

[back to top]


Whole Foods and Wal-Mart Execs Agree: We’re Not Green

By Lisa Everitt ,
B Net
June 23rd, 2008                              
[back to top]

Put a Wal-Mart guy and a Whole Foods guy on the same stage to talk sustainability at a conference in Boulder, and what happens? Interesting things.

Fresh from their morning yoga and organic luncheon, a not particularly friendly audience of execs and marketers heard Wal-Mart senior director of corporate responsibility Rand Waddoups say: “Wal-Mart is not a green company.” Countered Michael Besancon, southwest regional president for Whole Foods Market: “If Wal-Mart is not a green company, then Whole Foods is not a green company. We do a lot of green things, and we have green intentions, but we don’t believe that we are, and we try not to say that we are.” Later in the discussion, asked by eco-journalist Simran Sethi whether Wal-Mart sells products containing genetically modified organisms, Waddoups answered, “Everybody is.”

Sethi started to pursue the point but Besancon interrupted. “We are too,” he said. “We sell GM foods. We can’t source corn and soy in every product… we can’t control everything manufacturers do.” Because of this, consumers as well as retailers must push for transparency of the supply chain, Waddoups said. Added Besancon: “The more questions you ask, the more answers you get that you don’t want to hear.”

Sustainability, Besancon added, creates a great deal of tension between the three legs of the “triple bottom line”: People, planet, and profits. Replacing plastic bags, which cost a penny each, with paper bags, which cost as much as 17 cents each, is not a zero-sum move.

Waddoups was the salty snack buyer at Wal-Mart, sharing a cubicle with the water buyer, when the company responded to Hurricane Katrina more quickly and effectively than the government did — starting with 18-wheelers full of bottled water. That showed him — and the rest of management — that the world’s largest company could be a potent power for good. “We’re trying to be as good as we were during Hurricane Katrina all the time,” he said. “What’s happening now with the climate is like Hurricane Katrina in slow motion.” Besancon, who went to work at a southern California health food store 38 years ago, noted that Waddoups started corporate and adopted a sustainable viewpoint, whereas “I started out as a hippie and became a hard-assed businessman.” From my notebook:

•Food price inflation is the most challenging aspect of the current economic environment for Whole Foods. Having been able to take advantage of “incredible price elasticity” on high-end foods, the company now has to add value to support its higher prices, such as the “Whole Trade” certification. Asked to go beyond what’s already required by Fair Trade and Rainforest Alliance, vendors have complained but more than 70 are participating in the new program, Besancon said.

•While Wal-Mart asks its 60,000 vendors to support sustainability measures, the company has found that operational changes are much easier to manage. “We (once) thought of energy expense as a noncontrollable expense,” Waddoups said, citing a supercenter in Las Vegas that cut energy expenses 45 percent in two years.

•Sometimes a sustainability change is a win-win-win. Wal-Mart now sells Radio Flyer tricycles out of the box, “because who needs a box?” Waddoups said. Because selling it without a box meant it had to be easier to assemble, it’s also easier to display, so “sales are great on it.” Reducing waste has always been a cultural value at Wal-Mart. “Sam Walton was the master of getting rid of waste,” Waddoups said.

•If last year was the year of the compact fluorescent, and this year is the year to bring your own bag and stop drinking bottled water, what happens next? “Spoilage,” said Besancon. “We discovered we were throwing a lot of stuff out.” In his four-state, 38-store region, Whole Foods composted 15 million pounds of trash last year that would have gone into landfills — “and that’s after food banks” take anything that’s still edible.

•While Waddoups is one of a three-person corporate responsibility team, Wal-Mart established sustainability captains at 40,000 stores. Each employee has a “Personal Sustainability Project” that ranges from quitting smoking (20,000 people) to making all Wal-Mart seafood compliant with Marine Stewardship Council guidelines (fish buyer Peter Redmond). “Sustainability is about individual choices in the aggregate,” Waddoups noted — and Wal-Mart CEO Lee Scott has told associates that sustainability will be key to getting promoted.

•Michael Pollan’s accusation of “industrial organics” in “The Omnivore’s Dilemma” was a wake-up call for Whole Foods, Besancon said. While he supports buying local and is conscious of food security, his overriding goal for nearly 40 years has been to remove synthetic chemicals from agriculture “and the reason we support industrial organic is because that’s how it gets done. It wasn’t going to get done one little farm at a time.” When he heard that Wal-Mart was the No. 1 seller of organic produce and organic cotton clothing, “I said, damn, my life has been successful. I won.”

•Whole Foods and three personal care manufacturers (Avalon Natural Products, Nutri Biotics? and Beaumont Products) were sued June 12 by California Attorney General Jerry Brown for selling products that contain a potential carcinogen, 1,4-dioxane. “What the hell’s up with Jerry?” Besancon asked. “Why in the hell doesn’t he sue Revlon? I don’t get it.”

[back to top]


Local News for Northwest Arkansas

By Kimberly Morrison,
The Morning News
June 23rd, 2008                          
[back to top]

Wal-Mart Stores Inc. in 2007 continued to slip down a list of corporate reputation rankings, according to a survey.

The Bentonville-based retailer ranked No. 44 on the Harris Interactive report, which ranks the reputations of the country's 60 "most visible" companies based on consumer perception surveys.

It was the third consecutive year Wal-Mart's score on the list declined.

Wal-Mart's slipped score was the also the third largest rating change, trailing behind Bank of America and Halliburton Co., which saw more significant declines in reputation scores.

Wal-Mart has similarly dropped down Fortune Magazine's list of America's most admired companies.

Wal-Mart in 2003 and 2004 was America's No. 1 most admired company on Fortune Magazine's list, but fell to No. 12 in 2005. The retailer in 2007 dropped to No. 19.

Wal-Mart isn't too concerned with reports on its reputation.

"At a time when the public and Wal-Mart customers specifically are being pressed financially to make ends meet, we think the ultimate measure of reputation is sales," said Greg Rossiter, a Wal-Mart spokesman. "Our sales over the last several months demonstrate pretty clearly that the public trusts Wal-Mart to help them save money to live better."

The retailer has in recent years set out to be a better corporate citizen by incorporating health care and environmental sustainability initiatives into its business. But it may take time for the public to shift their perceptions of the retailer, said Sam Waltz, the director of Sam Waltz & Associates and a specialist in corporate reputational management.

"When there's acute reputational damage that becomes chronic reputational damage, it becomes a very difficult thing to regain positive attributes," Waltz said.

"In other words, it can take some time to get public credit for the good work Wal-Mart is doing now. It could take months and years because there's people who look at them with a political paradigm and just do not want to give them credit."

Nearly half of the American public surveyed said that companies need to address global social issues such as poverty, hunger and disease. Yet treatment of employees, including labor practices and human rights, continued to be a the most important measurement in evaluating a company, according to the report.

Harris Interactive, a Rochester, New York-based market research company, surveyed more than 20,000 people and asked them to rate on a point scale a company's reputation on 20 attributes like vision and leadership, emotional appeal, financial performance and social responsibility.

Each survey participant is asked to rate one randomly selected company from the 60 included and each is given the option to rate a second company.

About 535 people rate each company.

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Mother's Lawsuit Blames Wal-Mart for Premature Birth

FoxNews.com
June 21st, 2008                          
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HAGERSTOWN, Md. — A Hagerstown woman who filed suit against Wal-Mart is asking for damages for herself and her son, who, she says, was born prematurely after she fell in a store.

Radhia Haj-Mabrouk contends in the suit filed Tuesday in Washington County Circuit Court that she slipped on water on the floor in the Wal-Mart on Garden Groh Boulevard in August 2005, fell and was hurt.

Haj-Mabrouk was pregnant then and her son was delivered by emergency C-section later that day, the suit says.Haj-Mabrouk is seeking $1 million on her behalf and $2 million on behalf of her son, Lofti Haj-Mabrouk, according to the lawsuit.

A Wal-Mart spokeswoman said Friday that Wal-Mart had not yet been served with the lawsuit.

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Like Clock Work: Wal-Mart Faces 80 Class Actions, Most from Off-The-Clock Allegations

By Kimberly Morrison,
The Morning News
June 21st, 2008                               
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Wal-Mart has worked overtime to show its kinder, gentler side, but accusations of workplace misdeeds are surfacing in a slew of class-action lawsuits that continue to challenge the retailers new image.

There are at least 80 class-action lawsuits in 41 states pending against the Bentonville-based retailer, 76 of which stem from wage and off-the-clock issues, according to Wal-Mart's 10K filing with the Securities and Exchange Commission.

There are more cases against the Bentonville-based retailer than those disclosed in Wal-Mart's federal filings. Companies are not required to disclose all legal proceedings, just those that may result in "material" financial losses, or more than 10 percent of the current assets of the company.

Among the lawsuits facing Wal-Mart, The Morning News examined five cases. The cases represent potentially the largest judgments or potential financial impact, or the highest number of plaintiffs.

Dukes v. Wal-Mart is a standout. It's being called a landmark case in employment discrimination. The suit's 1.6 million plaintiffs, representing all of Wal-Mart's female employees, makes it the largest sex-bias case in U.S. legal history.

"The company can not reasonably estimate the possible loss or range of loss that may arise from these lawsuits," Wal-Mart stated in its federal filing with the SEC.

There are, however, a few suits from which the retailer might expect to take a blow.

Wal-Mart is facing a $198 million lunch tab from Savaglio v. Wal-Mart, a class-action lawsuit in which employees said they were not provided meal and rest breaks in accordance with California state law.

A similar case in Pennsylvania involved complaints of missed meal and rest breaks and other failures to pay employees for all time worked. That case -- Braun/Hummel v. Wal-Mart -- resulted in a judgment against Wal-Mart of nearly $188 million.

Wal-Mart has consistently denied wrongdoing in these and other cases.

Both Savaglio and Braun/Hummel cases are tied up in appeals, delaying the payout to 301,000 current and former employees that make up the two lawsuits.

It also means the retailer hasn't yet footed the combined $251 million bill.

But can any of these lawsuits financially threaten a retailer that made $12.8 billion in net income in its more recent fiscal year?

"It's not like they wouldn't be able to pay the light bill if they had a billion dollar settlement," said Patricia Edwards, fund manager with San Francisco-based Wentworth, Hauser and Violic. "It wouldn't be good, don't get me wrong. But the low point in cash last year at quarter end was just short of $5 billion."

Edwards said Wal-Mart reserves cash for potential future lawsuit payouts so there would be a reduced impact on shareholders in the event of such a case. With Wal-Mart's ability to absorb some of the impact, a billion dollar payout may show up in earnings as a loss of 5 cents per share, Edwards said.

There's also consolation, Edwards said, that there doesn't seem to be a lot of new cases in the pipeline, an indication that Wal-Mart may have changed its ways.

"If you're dealing with things that happened three to five years ago and you've changed and are not doing those things anymore, then you have to look at the company on a go-forward basis rather than what's happened before," Edwards said.

But the ghosts of Wal-Mart have yet to haunt the retailer.

The following are summaries and updates of the largest cases facing Wal-Mart.

DUKES V. WAL-MART

Among all the cases facing Wal-Mart, this one is the mother lode.

Dukes v. Wal-Mart represents a whopping 1.6 million female employees and alleges Wal-Mart systematically discriminated against women in promotions, pay, training and job assignments.

"Wal-Mart has strong equal employment opportunity policies, and fosters female leadership both among its associates and in the larger business world," Daphne Moore, Wal-Mart spokeswoman, said in an e-mail statement. "Wal-Mart has consistently maintained that class certification is inappropriate because the alleged experiences of the six women who brought this suit are not representative of our female associates."

The case was brought on behalf of all past and present female employees in the company's U.S. retail stores and warehouse clubs since 1998. Six women, including two who still work at Wal-Mart stores, originally filed the suit in 2001.

Wal-Mart in December lost its second bid to have a federal appeals court in San Francisco reconsider a lower-court decision to grant class-action status.

Wal-Mart is still fighting the court's decision.

A three-judge panel of the federal appeals court split 2-to-1 in the decision to uphold the class-action status. The retailer on Jan. 8 filed a petition for "rehearing en banc," or, by the full 15-judge panel.

Both sides are waiting on the Ninth Circuit to set a briefing schedule so they can respond to arguments.

After briefing, the court could still take several months to resolve the panel and "en banc" reviews, said Brad Seligman of Berkeley, Calif.-based The Impact Fund and lead attorney for the eight firms representing the plaintiffs.

"At root, this is not a novel case," Seligman said. "It is a very straightforward case about whether Wal-Mart is paying women less than men and not promoting them as often as they should."

The plaintiffs seek, among other things, injunctive relief, front pay, back pay, punitive damages, and attorney's fees. And the final tally on that, should the plaintiffs win their case, could amount to more than a billion dollars.

"Based on the analysis we presented to the court in 2003, it didn't take any mental gymnastics to get to the billion dollar range," Seligman said. "I'm sure it's more now."

HALE V. WAL-MART

A case that began in 2002 with five former employees in Missouri has since swelled to more than 200,000.

The plaintiffs, who worked for the company's stores and discount warehouses between 1996 and 2003, allege systematic understaffing and overtime limits were enforced through the retailer's corporate policies and a bonus incentive plan for managers based on strict payroll and staffing controls. The understaffing caused employees to miss breaks and work off the clock without compensation, the plaintiffs allege.

The Missouri Court of Appeals last June upheld the suits' class-action status, originally granted in 2005. A trial has been set for April 6, 2009.

It will be a trial nine years in the making since plaintiffs first filed the suit. But it's time that Steve Long, lead trial attorney with Denver-based Shughart, Thomson & Kilroy and one of the 12 attorneys representing the plaintiffs, said was well-spent.

"I think the Missouri courts took a long time to make sure they got it right and making sure this was a proper class action," Long said. "Hopefully it will allow us to avoid a lot of post-trial issues because so much has been decided already."

Long has gone up against Wal-Mart before. Colorado-based attorneys Gerald Bader and Franklin Azar tapped Long for help representing Wal-Mart workers in Colorado in a similar off-the-clock lawsuit. That case reportedly settled for $50 million.

Long's career in business litigation spans more than 30 years and 60 jury trials, but said facing off with Wal-Mart is a daunting task.

"Wal-Mart is a formidable defendant," Long said. "They fight very hard for what they believe, and they fight very hard to protect the way they practice their business in order to preserve their profits. Since they make a lot of money, they can fight very hard."

BRAUN/HUMMEL v. WAL-MART

The class-action lawsuit initially filed by Michelle Braun in 2002 was soon followed by another lawsuit filed by Dolores Hummel in 2004. The litigants proceeded separately until the estimated 186,000 plaintiffs were consolidated for trial in September 2006, according to court documents.

The plaintiffs alleged that they were forced to miss rest breaks and work off the clock from March 1998 through May 2006.

A three-month, 32-day trial ended in a jury siding with the plaintiffs, and found that Wal-Mart failed to pay workers for all the work they performed and refused to allow workers to take their paid mandatory rest breaks.

The jury awarded damages of $78.8 million.

A Pennsylvania judge later awarded $62.3 million in damages, $10.2 million in interest and $36.5 million in attorney's fees for the five firms representing the plaintiffs.

The final judgment was $187.6 million.

"The company believes it has substantial factual and legal defenses to the claims at issue," Wal-Mart said in its federal filing. The company filed a notice of appeal in December.

SAVAGLIO V. WAL-MART

The largest verdict to date against the retailer is Savaglio v. Wal-Mart, which also grabbed the No. 10 spot on The National Law Journal's list of top verdicts from 2005.

The allegations in this case are like the others -- they were not provided meal and rest breaks in accordance with state law. In California, employees working more than 6 hours receive a 30-minute meal break or an additional hour pay. Wal-Mart, the workers allege, did neither.

The 2005 jury trial of the case resulted in a verdict of $57 million in statutory penalties and $115 million in punitive damages. The judge later in 2006 awarded the plaintiffs an additional $26 million in costs and attorney's fees.

Wal-Mart stated in its federal filing that "the company believes it has substantial factual and legal defenses to the claims at issue."

The retailer in January filed its notice of appeal.

"We won and Wal-Mart has appealed virtually everything under the sun," said Michael Christian, attorney with Minneapolis-based Zelle, Hofmann, Voelbel & Gette LLP. "Nothing happens during the pendancy of that appeal. The briefing will be completed within the next months and at that point, the court will likely set an oral argument for some point in the fall."

Christian is still working with the case, but has since moved to Zelle Hofmann from San Francisco-based The Furth Firm, which maintains control of the case.

BRAUN v. WAL-MART

A verdict is waiting in the wings for a Minnesota class-action suit representing 56,000 Wal-Mart and Sam's Club employees.

The trial began in January. Over the next two and a half months of trial, attorneys for the plaintiffs argued that Wal-Mart owes employees more than $50 million for unpaid work, including 8 million missed meal and rest breaks, and falsified time cards.

Wal-Mart attorneys have denied the allegations.

"Wal-Mart did not force anybody to do anything," company attorney Neal Manne said as the trial concluded April 1.

Plaintiffs claimed stores were understaffed and managers were pressured to meet store performance goals. They allege that store managers falsified timecards and asked employees to work before clocking in and after clocking out.

Debbie Simpson, a former employee and original plaintiff in the suit, testified she missed breaks because there was too much work and no one was available to cover for her. She eventually resigned from her position as a department manager.

"Wal-Mart is chronically understaffed and we have a significant amount of evidence showing that -- not just ours, but Wal-Mart's own records," said Justin Perl, who leads the case for Minneapolis-based Maslon, Edleman, Borman & Brond LLP. "Wal-Mart is now contending that its own time records are inaccurate."

The workers are seeking back pay to 1998 and as much as $1,000 per violation.

Judge Robert King Jr. said he would issue a decision on liability, back pay and willfulness by July 1. A jury trial would decide damages in a second trial to start Oct. 20, should King rule in favor of Wal-Mart's employees.

BEYOND THE FIVE

Wal-Mart has argued in the cases that circumstances are individual and not representative of worker's conditions at its stores, and has vigorously challenged the class-action certifications for every case.

"Wal-Mart is committed to treating its associates fairly and in accordance with the law," Moore said in an e-mail statement. "It is our policy to pay every associate for every hour worked, and any manager who violates that policy is subject to discipline, up to and including termination. The great majority of courts across the nation have ruled that cases like this are not properly suited for treatment as class actions because every individual's circumstances are unique."

Wal-Mart additionally stated in its March 31 federal filing with the SEC that class certification has yet to be addressed in a majority of cases, but where it has, the company's tally goes like this -- certification was denied in nine cases, granted in 11 cases, conditionally granted in three cases, denied in nine cases and in two cases, certification was granted, but the case was subsequently dismissed.

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Wal-Mart plans IT back office in Bangalore

By Boby Kurian
& PP Thimmaya,
Economic Times
June 20th, 2008                               
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BANGALORE: A new address may be added to Bangalore’s already-crowded IT landscape. Wal-Mart, the world’s biggest retailer, is mulling a captive IT/ITeS unit in India’s tech capital, with the potential to create several hundred jobs, sources said.

The $388-billion retail giant, based in Bentonville in the US, has outsourcing ties with IT vendors like Infosys and has done a recce for developing a captive shared service centre to cater to multiple functions in its worldwide operations. Besides IT development and maintenance, a shared service centre supports different parts of a global enterprise such as HR, finance and accounting.

Sources said Wal-Mart looked at a few potential locations before more or less zeroing in on Bangalore. While a definite call on the captive unit is still pending, Wal-Mart is believed to have scouted for senior tech personnel to take the idea forward.

“Wal-Mart is expanding its IT resources globally, including India, to support its growing international business and operations in India. However, we have made no further announcements to that growth. We currently have no plans for a captive development centre in India,” a Wal-Mart spokesperson said. Wal-Mart’s information systems division is centralised at Bentonville, with a large pool of Indian techies on board. But going forward, the retail behemoth may be looking at developing IT hubs globally to bolster its round-the-clock support services.

In February this year, the retailer said it was expanding IT staffing in India through outsourcing deals with unidentified vendors. The press statement at the time mentioned that Wal-Mart was expanding outsourcing even as it created several hundred new jobs in Northwest Arkansas in the US. Some observers said Wal-Mart may firm up plans only after the US presidential elections later this year as the flight of jobs abroad continues to be a sensitive issue in America. Interestingly, the development comes when there’s a raging but inconclusive debate about the long-term viability of captive IT units on concerns of escalating costs.

But several global retailers like Tesco, Target and Supervalu have set up captive support centres in Bangalore in the last 3-4 years. A source said Wal-Mart may kick off the captive centre with a small operation and may even rope in a dedicated third-party vendor to start with a small basket of offerings. But Wal-Mart’s global peers have set up their own captives due to the fact that no large Indian IT/ITeS player has the capability to provide end-to-end services in the dynamic and complex world of retailing.

UK’s Tesco, the world’s third-largest retailer behind Wal-Mart and Carrefour, set up a captive centre nearly four years ago, and currently employs over 2,700 people. Tesco Hindustan Service Centre caters to the entire IT life-cycle management of the parent’s global retail operations, besides support businesses and finance services like payroll and pension management as well as store design support. In fact, the Hindustan Service Centre played a crucial supportive role in Tesco’s recent high-profile foray into the US market pitting it against Wal-Mart on the latter’s home turf.

At the same time, India’s outsourcing majors have been deepening their retail vertical offerings, with Infosys counting Wal-Mart and Tesco among its clients while TCS does work for Home Depot. Most frontline IT companies have projected a substantial ramp-up in their retail vertical, with the rapidly-expanding domestic retail sector showing huge potential.

Wal-Mart has entered into a joint venture with the Sunil Mittal-led Bharti Group for cash & carry operations while Carrefour and Tesco are rumoured to be in advanced discussions with local suitors for similar tie-ups.

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SmartCare closes 15 Wal-Mart med clinics,

By Joyzelle Davis
Rocky Mountain News
June 20th, 2008                          
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SmartCare Family Medical Centers on Friday unexpectedly shut its 15 in-store health clinics located in Wal-Mart stores throughout Colorado.

Wal-Mart had no prior notice, company spokesman William Wertz said.

SmartCare's public relations agency issued a statement confirming the closures and referred questions to the company's Texas headquarters, which didn't return a call.

The in-store clinics treated common medical problems like strep throat and ear infections for a $65 flat fee. The clinics, staffed with nurse practitioners, were open from early morning to late evening seven days a week for walk-in appointments.

Several other operators of in-store health care clinics, including New York-based CheckUps, have closed sites amid high operating costs. Last month, CVS/Caremark, the parent of MinuteClinic, said it was curbing growth plans and might shutter some locations.

Wal-Mart contracts with a number of clinic operators nationwide and remains committed to the idea, Wertz said.

It's too soon to tell what Wal-Mart will do with the SmartCare clinic locations, he said, but the store might consider a partnership with local medical centers or other providers.

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Companies deny breaking pledges

By He Huifeng ,
South China Morning Post
June 19th, 2008                                 
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