Wal-Mart

Change to Win unions are standing up to Wal-Mart in our Wal-Mart Campaign.

Basic Stats

  • Wal-Mart is the second largest corporation in the world behind Exxon/Mobil. 
  • It had more than $315 billion in sales in 2005.1
  • The company made $11.3 billion in net profit in 2004. It more than doubled its sales and profit between 2000 and 2005.2
  • Wal-Mart is the largest private sector employer in the U.S. with more than 1.3 million employees at nearly 3,700 stores.3

Count #1: Creating Poverty-Level Jobs

  • Wal-Mart sales associates earned on average $8.23 per hour and worked only 32 hours a week in 2003, adding up to annual wages of $13,861.4
  • Cashiers earned approximately $7.92 per hour and worked 29 hours a week in 2003. This brings in annual wages of only $11,948.5
  • According to Wal-Mart, the average hourly wage for regular full-time associates is $10.11.6
  • This wage is 34% lower than the national housing wage of $15.37, the amount of money one needs to earn to afford to rent a two-bedroom apartment. 7This wage is barely more than the income needed to keep a family of four above the federal poverty line: $20,000, or an average of $9.62 an hour.8

Count #2: Corporate Excess and Greed

  • Four of the world's top 20 billionaires are Walton family members, each with a net worth of about $15.8 billion.<sup>9</sup>
  • Wal-Mart CEO H. Lee Scott made $17.5 million in total compensation in 2004. 10 His compensation amounted to $48,000 a day. So in one day of work Scott makes three times the amount that a typical Wal-Mart employee makes in a year.

Count #3: Contributing to the U.S. Health Care Crisis

  • Wal-Mart's health insurance only covers 43% of its employees.<sup>11</sup>
  • On average, large firms (200 or more workers) cover approximately 68% of their employees.<sup>12</sup>
  • Wal-Mart's most affordable individual plan charges premiums of $22 a month ($11 in some areas); but it carries with it a $1,000 deductible for individuals, a $3,000 deductible for family members with a separate $1,000 per person hospital deductible, and a $300 per person prescription drug deductible.<sup>13</sup>
  • At these deductible levels, a person earning Wal-Mart's average hourly wage for a full-time worker would have to spend between 7% and 25% of his total annual income just to cover his premiums and medical deductibles.<sup>14</sup>
  • The cost of premiums for Wal-Mart family health insurance has risen 117% since 2000. 15 In comparison, average premiums for family coverage in the United States have increased by 59% since 2000.<sup>16</sup>
  • Wal-Mart admits that public health care assistance is a "better value" for its employees than its own plans. President and CEO Lee Scott said, "In some of our states, the public (health insurance) program may actually be a better value - with relatively high income limits to qualify, and low premiums."<sup>17</sup>
  • Wal-Mart employees must wait longer than the average worker to gain access to plans:
    • Part-time employees must wait two years before they are allowed to enroll and are not eligible to purchase family health care coverage.<sup>18</sup>
    • Full-time hourly employees must wait 6 months before enrolling in Wal-Mart's health insurance plan.<sup>19</sup>
    • By comparison, the average national wait time for new employees to become eligible for enrollment in company provided health care plans is 1.6 months.<sup>20</sup>

Count #4: Creating Insecure Retirements

  • Neither of Wal-Mart's two retirement plans guarantees workers a fixed monthly pension benefit.
  • In an Enron-like move Wal-Mart has shifted risks to employees by concentrating the plan's investment in its own stock. In 2003, 67% of the plan's combined assets were invested in Wal-Mart stock. Meanwhile, from January 2000 to January 2005, the average adjusted share price of Wal-Mart's stock lost more than a fifth of its value.<sup>21</sup>
  • By being concentrated in one security, employees' retirement plans are subject to the whims of one stock rather than having the safety of a diversified portfolio.

Count #5: Breaking U.S. Laws

  • Since 1995, the U.S. government has issued at least 60 complaints against Wal-Mart for violations of the National Labor Relations Act.<sup>22</sup>
  • Wal-Mart's labor law violations range from illegally firing workers who attempt to organize a union to unlawful surveillance, threats, and intimidation of employees who dare to speak out.<sup>23</sup>

Endnotes

  1. Wal-Mart 2005 10K.
  2. Wal-Mart Annual Reports, 1999-2005.
  3. Wal-Mart Annual Report 2005.
  4. Anthony Bianco and Wendy Zellner, "Is Wal-Mart Too Powerful?" Business Week, Oct. 10, 2003.
  5. Dr. Richard Drogin, "Statistical Analysis of Gender Patterns in Wal-Mart's Workforce," 2003.
  6. Wal-Martfacts.com; accessed April 21, 2006.
  7. National Low Income Housing Coalition, "Out of Reach 2005."
  8. "2006 Federal Poverty Guidelines," Federal Register, Vol. 71, No. 15, Jan. 24, 2006, pp. 3848-3849.
  9. Forbes, "Billionaires: The Richest People in the World," Mar. 27, 2006.
  10. Wal-Mart proxy statement, April 15, 2005.
  11. www.walmartfacts.com/docs/1625_jan2006healthcarebackgrounders_576890240; accessed Feb. 2006.
  12. Kaiser Family Foundation & Health Research and Educational Trust, "Employer Health Benefits: 2004 Annual Survey," 2004.
  13. Wal-Mart 2006 Associate Guide.
  14. Wal-Mart 2006 Associate Guide and United Food and Commercial Workers analysis.
  15. United Food and Commercial Workers analysis of annual Wal-Mart Associate Guides.
  16. Kaiser Family Foundation & Health Research and Educational Trust, "Employer Health Benefits: 2004 Annual Survey," 2004.
  17. Susan Bucher, "Wal-Mart: the $288 billion welfare queen," Tallahassee Democrat, April 19, 2005.
  18. Wal-Mart 2005 Associate Guide.
  19. Wal-Mart 2005 Associate Guide.
  20. Kaiser Family Foundation & Health Research and Educational Trust, "Employer Health Benefits: 2004 Annual Survey," 2004.
  21. http://www.wakeupwalmart.com/facts/; accessed on April 21, 2006.
  22. International Confederation of Free Trade Unions (ICFTU), "Internationally Recognised Core Labour Standards in the United States: Report for the WTO General Council Review of the Trade Policies of the United States," Jan. 14-16, 2004.
  23. "Everyday Low Wages: The Hidden Price We All Pay for Wal-Mart," A Report by the Democratic Staff of the Committee on Education and the Workforce, U.S. House of Representatives, Feb. 16, 2004.