With over $400 billion in sales and about 2.1 million employees, the company ranks third globally in the 2009 Fortune 500 rankings behind Royal Dutch Shell and Exxon Mobil.
In 2008, Wal-Mart's average full-time Associate, its most common position, earned $10.84 an hour (for a 34-hour week) or an annual income of $19,165, $2,000 below the federal poverty line for a family of four. According to the US Bureau of Labor Statistics (May 2, 2008), the average full-time Wal-Mart Associate last year earned 16% less than the average retail wage. At the same time, its CEO Lee Scott (January 2000 - January 2009) earned $29.7 million in total compensation.
On December 23, 2008, the company announced that it settled 63 wage and hour class action lawsuits, representing about 86% of the 73 total pending. Through evidence obtained and employee testimonies, these cases revealed company ruthlessness in keeping labor costs down and unions out.
Legal documents showed that managers are rewarded for forcing employees to work off-the-clock, skip meal and rest breaks, then manipulate time and wage records to cut costs. They also overwork minors and keep them during school hours. An internal July 2000 company audit revealed that these violations were longstanding. Company executives engaged in illegal activity and hid the evidence to avoid liability.
Under terms of the settlement, Wal-Mart agreed pay at least $352 million and perhaps as much as $640 million to present and former employees. According to Professor Paul Secunda of Marquette's School of Law, the company settled to avoid an even worse defeat, including what unionization might cost.
On October 23, 2003 in a 21-state raid, Immigration and Customs Enforcement (ICE) agents arrested more than 250 undocumented workers at 61 Wal-Mart stores. As cleaning crews and janitors, they were forced to work seven days a week under harsh conditions at below minimum wage rates, no overtime, and according to one employee "no benefits, no health insurance, no nothing."
Stephen Lendman is a Research Associate of the Centre for Research on Globalization. He lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.
Also visit his blog site at sjlendman.blogspot.com and listen to The Global Research News Hour on RepublicBroadcasting.org Monday - Friday at 10AM US Central time for cutting-edge discussions with distinguished guests on world and national issues. All programs are archived for easy listening.
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