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'''Wal-Mart Stores''' Inc. has more than 2500 stores in the U.S. and is the largest retailer in the world.[http://investor.walmartstores.com/phoenix.zhtml?c=112761&p=irol-irhome] The ''Arkansas News Bureau'' reported that Wal-Mart only opened its Washington D.C. office in 1999. According to Washington Representatives as of November 2005, Wal-Mart had eight in-house lobbyists at its D.C. office and employed 11 outside consulting firms for federal lobbying work.
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{{Show badges|AEX}}[[Image:Waltons_photo.jpg|thumb|200px|right|Jim, Alice and Rob Walton (L-R)]]'''Walmart''' is the world's largest retailer, according to ''Forbes'',<ref>''Forbes'', "[http://www.forbes.com/pictures/mlf45egejd/no-1-wal-mart-stores/ Global 2000: The World's Largest Retailers of 2014]", Accessed July 22, 2014.</ref> with 10,994 stores around the world in 2014, including more than 4,800 stores in the U.S.,<ref>Walmart Stores, "[http://cdn.corporate.walmart.com/29/ef/74d5962d4f91b89039f754797cc2/unit-counts-by-market-april-2014.pdf Walmart Unit Counts by Country]" Accessed July 22, 2014.</ref> though Walmart planned to close 154 U.S. and 115 global stores in 2016.<ref name="nytimes walmart to close"/> It is also the world's largest corporation in revenue<ref> ''Fortune Magazine'', "[http://fortune.com/global500/wal-mart-stores-1/ Global 500: 2014]", accessed July 22, 2014. </ref> and was the largest importer of goods to the United States as of 2013, according to the ''Journal of Commerce'',<ref>Marsha Salisbury, “[http://www.joc.com/international-trade-news/trade-data/united-states-trade-data/top-100-importers-2013.html Top 100 US Importers in 2013],” ''Journal of Commerce'', May 23, 2014.</ref> contributing significantly to the U.S. national trade deficit.  
  
== Wal-Mart Speak ==
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Estimates of the average hourly wage for Walmart associates vary, but several independent sources put it under $9.00 per hour. An independent study in 2011 found that the average Walmart associate made just $8.81 per hour<ref>Courtney Gross, “[http://www.gothamgazette.com/index.php/economy/694-is-wal-mart-worse Is Wal-Mart Worse?],” ''Gotham Gazette'', February 14, 2011 </ref> and a July 2014 report found that Walmart cashiers averaged $8.48/hour.<ref>Shelly Banjo, "[http://blogs.wsj.com/corporate-intelligence/2014/07/23/pay-at-wal-mart-low-at-the-checkout-but-high-in-the-managers-office/ Pay at Walmart: Low at the Check-out but High in the Manager's Office]" ''Wall Street Journal'', July 23, 2014.</ref> An April 2014 study by Americans for Tax Fairness estimated that subsidies and tax breaks for Walmart and the Walton family that owns the operation cost U.S. taxpayers $7.8 billion per year, including approximately $6.2 billion in assistance to Walmart workers due to low wages and benefits.<ref> Americans for Tax Fairness, "[http://www.americansfortaxfairness.org/walmart-on-tax-day/ Walmart on Tax Day: How Taxpayers Subsidize America's Biggest Employer and Richest Family]" Americans for Tax Fairness website, April 2014. </ref>
  
Wal-Mart, in common with many businesses, calls its employees "associates", considered by some to be an example of [[doublespeak]].
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Walmart is one of the "biggest and fastest growing" climate polluters in the nation, say experts at the Institute for Local Self Reliance. Between 2005, the year the company launched its “sustainability” campaign, and 2013, Walmart’s self-reported greenhouse gas emissions grew 14 percent.<ref>Stacy Mitchell, "[http://www.ilsr.org/wp-content/uploads/2013/10/ILSR-_Report_WalmartClimateChange.pdf Walmart’s Assault on the Climate]," Institute for Local Self Reliance, November 2013. </ref>
  
In company founder Sam Walton's autobiography ''Sam Walton: Made In America,'' Walton recalls that James Cash Penney referred to hourly employees as "associates," but the specific inspiration for Wal-Mart's use of the term came from a sign Walton and wife Helen encountered at a British retailer during a tennis vacation in England.
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According to the ''Journal of Commerce'', Walmart was the largest importer of goods to the United States in 2013.<ref>Marsha Salisbury, "[http://www.joc.com/international-trade-news/trade-data/united-states-trade-data/top-100-importers-2013.html Top 100 US Importers in 2013],” ''Journal of Commerce'', May 23, 2014. </ref> A report from the Economic Policy Institute estimated that Walmart's trade with China between 2001 and 2006 was responsible for the elimination of 200,000 U.S. jobs.<ref>Robert E. Scott, "[http://www.epi.org/publication/webfeatures_snapshots_20070627/ Walmart's Reliance on Chinese Imports Costs U.S. Jobs]," Economic Policy Institute, June 27, 2007. </ref>
  
At the time Walton was concerned with providing employees with more equitable treatment within the newly-public company, and in 1971 introduced a profit sharing plan for all associates.
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Walmart spent $2.4 billion in advertising in 2014,<ref>Walmart Stores, [http://www.sec.gov/Archives/edgar/data/104169/000010416914000019/wmt13114ars.htm FY2014 10k Report], Securities and Exchange Commission Filed March 21, 2014.</ref> much of it specifically to trumpet its role as an employer,<ref>Walmart Stores, "[http://news.walmart.com/news-archive/2013/05/04/walmart-launches-national-advertising-campaign-to-show-the-real-walmart Walmart Launches National Advertising Campaign to Show the Real Walmart]," Organizational Press Release, May 4, 2013.</ref> its commitment to hire military veterans,<ref>Market Me Not, "[http://www.marketmenot.com/walmart-pledge-to-veterans-commercial/ Walmart Pledge to Veterans Commercial]," Market Me Not website, May 20, 2014. </ref> and its new US manufacturing initiative.<ref>Walmart Stores, "[https://www.youtube.com/watch?v=0LYI--n-tjE Walmart 'Working Man' Commercial]," Hosted on Youtube, Published February 6, 2014. </ref>   
  
== Wal-Mart's Warts ==
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Walmart is a publicly traded company, majority-owned by the Walton Family.<ref>Clare O'Connor, "[http://www.forbes.com/sites/clareoconnor/2013/06/13/as-walton-family-solidifies-majority-wal-mart-workers-promise-dissent-for-fair-pay/ As Walton Family Solidifies Majority, Walmart Workers Promise Dissent for Fair Pay]," ''Forbes'', June 13, 2013. </ref> The Walton family is the wealthiest family in the United States with a fortune worth $148 billion in 2014.<ref>Walmart 1%, "[http://walmart1percent.org/how-rich-are-the-waltons/ How Rich are the Waltons?]," Updated March 5, 2014. </ref> They use their wealth to support a variety of right-wing causes, including the privatization of public schools. For more information about the Walton family, see [[#Walmart_Heirs_Wield_Outsize_Influence_on_U.S._Politics_and_Economy|below]] and read the [[Walton Family Foundation]] article.
  
The ''New York Times'' reported in January 2003 that an internal Wal-Mart audit done in 2000 warned executives that "employee records at 128 stores showed extensive violations of child-labor laws and state regulations that require workers to be given time for breaks and meals." [http://www.arkansasnews.com/archive/2004/01/18/WashingtonDCBureau/107230.html]
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Access Wal-Mart's corporate rap sheet compiled and written by ''Good Jobs First'' [http://www.corp-research.org/wal-mart here].
  
On November 2, 2004, ''USA Today'' reported that "Election Day is a lousy shopping day." But Wal-Mart attempted to appeal to the politically-minded bargain shopper by showing live [[Fox News]] election coverage at its 2620 stores. The goal is "to keep shoppers and employees informed," according to [[Charlie Nooney]], CEO of [[Premier Retail Networks]], which provides Wal-Mart's  in-store TVs. But [[Wendy Liebmann]], the president of [[WSL Strategic Retail]], said that "Wal-Mart may be showing a Republican point of view to shoppers" by running Fox News. "Most retailers tend to keep political affiliations to themselves," she commented. [http://www.usatoday.com/money/industries/retail/2004-11-01-election-retail_x.htm]
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{{Template:Violation_Tracker}}
  
On April 8, 2005, the ''Wall Street Journal'' reported that Wal-Mart vice-chairman [[Thomas M. Coughlin]], an "old hunting buddy of founder Sam Walton and for five years the second-highest-ranking executive," may have falsified expense reports totaling between $100,000 and $500,000. Coughlin's "total compensation topped $6 million" in 2004. The shady transactions were of particular interest because "Coughlin told several Wal-Mart employees that the money was actually being used for antiunion activities, including paying union staffers to tell him of pro-union workers in stores." [http://online.wsj.com/article/0,,SB111291400324201359,00.html?mod=mm%5Fmedia%5Fmarketing%5Fhs%5Fleft]
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__TOC__
  
According to the ''Wall Street Journal'', "If Mr. Coughlin did pay union staffers for information, it would represent a criminal offense under the federal [[Taft-Hartley Act]] and ratchet up debate over the retail giant's labor policies." Coughlin supporters claimed "the payments went to former, rather than current, union people who had information about union activities at Wal-Mart." However, a former general counsel of the [[National Labor Relations Board]] said even payments to former union employees "could violate the [[National Labor Relations Act]] and carry civil penalties." [http://online.wsj.com/article/0,,SB111291400324201359,00.html?mod=mm%5Fmedia%5Fmarketing%5Fhs%5Fleft]
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==Walmart and the African-American Community==
  
In a statement, Wal-Mart spokesperson Mona Williams said the company's investigation "found no evidence whatsoever" of anti-union payments, adding, "The evidence shows that corporate funds were misappropriated and used for the personal benefit of specific individuals." Williams said, "Neither Mr. Coughlin nor anyone else at Wal-Mart was ever authorized by the company to make payments to anyone about union activity." [http://online.wsj.com/article/0,,SB111291400324201359,00.html?mod=mm%5Fmedia%5Fmarketing%5Fhs%5Fleft]
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Walmart is the largest private employer of African-Americans in the United States. <ref>Julie Walker, "[ http://www.theroot.com/articles/culture/2012/10/why_black_friday_might_be_blue_for_walmart.html Will Black Friday Be Blue for Wal-Mart]," ''The Root”, October 13, 2012.</ref>  More than 20% of Walmart’s 1.3 million US workers are African-American. <ref> Walmart Stores, “[http://www.corporatereport.com/walmart/2015/grr/2015_WALMART_GRR.pdf Walmart 2015 Global Responsibility Report],” “Walmart Stores, 2015. </ref> <ref>Walmart Stores, “[http://cdn.corporate.walmart.com/b5/c2/51e31 Walmart’s Fiscal Year 2015 Q4 Earnings Results Media Call Transcript]”, February 19, 2015.</ref> A recent report by Americans for Tax Fairness found that, even with Walmart’s announced wage increases, many Walmart Associates will continue to earn so little that they qualify for food stamps and other taxpayer funded programs.<ref> Americans for Tax Fairness, “[http://www.americansfortaxfairness.org/the-walmart-tax-subsidy/ The Walmart Tax Subsidy],” Americans for Tax Fairness, April 1, 2015.</ref> Nearly 40% of African-American part-time retail workers would like to work full-time if they could get the hours.<ref> US Census Bureau, Current Population Survey, Table 17: Employed and unemployed full-and part-time wage and salary workers by intermediate industry, sex, race. Annual average 2011.</ref> Roughly half of all Walmart Associates are part-time.
  
== Open Communication, but No Unions ==
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===People of Color are Under-Represented in Walmart Management===
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Although people of color make up 39% of all Walmart Associates, only 22% of Walmart officers are people of color. <ref>Walmart Stores, “[http://www.corporatereport.com/walmart/2015/grr/2015_WALMART_GRR.pdf  Walmart 2015 Global Responsibility Report],” “Walmart Stores, 2015.</ref>  Similarly, Walmart’s Board of Directors has just two people of color on their 15 member board (13%).<ref> Walmart Stores, “[http://corporate.walmart.com/our-story/leadership/board-of-directors/ Walmart Board of Directors],” Walmart Corporate Website.  Accessed August 21, 2015.</ref>
  
In November 2004, ''PR Week'' reported that the [[United Food and Commercial Workers]] union is engaged in an ongoing, multi-year campaign to organize employees at seven Wal-Mart stores in Canada. One UFCW employee said the union is trying "do everything quickly and quietly," in order to "stay under the company's radar as long as possible." The UFCW campaign did unionize the first Wal-Mart store ever, in Quebec in 2004 (see below). [http://prweek.com/news/news_story.cfm?ID=226978&site=3]
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===The Walton Family Disproportionately Funds Politicians Who Vote Against Civil Rights Protections===
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The Walmart PAC and Waltons’ contributions from 2005 to 2012 show that, among candidates with Leadership Conference on Civil and Human Rights scores, the Walmart PAC and Waltons favored candidates who failed to protect civil rights.<ref> Leadership Conference on Civil and Human Rights, [http://civilrightsdocs.info/pdf/voting-record/leadership-conference-voting-record-112-congress.pdf Voting Records, 112th Congress],” Leadership Conference, October, 2012. </ref>  In fact, 85% of the Waltons’ contributions went to candidates with scores of 25 or below, out of 100.
  
In response, Wal-Mart launched an anti-union internal communications program called "[[Setting the Record Straight]]." The program involved disseminating "statistics and independent studies" to Canadian Wal-Mart employees that "dispute assertions made by critics, such as 'Wal-Mart will provide "dead-end," poor quality jobs' and 'Wal-Mart is an American company that does nothing to support Canada.'" Wal-Mart's official position on unions is that they are unnecessary "because we believe in maintaining an environment of open communications." As ''PR Week'' reported, "Wal-Mart plans to fight the UFCW at every step." [http://prweek.com/news/news_story.cfm?ID=226978&site=3]
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===Stunning Disparity Between the Wealth of the Walton Family and the Struggles of the African-American Community===
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The Walton family is the wealthiest family in America and is worth more than $149 billion.<ref>Forbes Magazine, “[http://www.forbes.com/profile/walton-1/ Walton Family],” Forbes, Accessed August 21, 2015.</ref> The Economic Policy Institute found that the Waltons’ wealth is now equivalent to 79% of African-American families combined.<ref> Josh Bivens, [http://www.epi.org/blog/measure-staggering-wage-gaps-united-states/ Another Measure of the Staggering Wage Gaps in the United States: Comparing Walton Family Wealth to Typical Households by Race and Ethnicity],” Economic Policy Institute, October 15, 2014.</ref>
  
In February 2005, Wal-Mart announced it was closing a store in Quebec where workers were negotiating the first union contract ever with the giant retailer. "Wal-Mart Canada spokesman [[Andrew Pelletier]] said the company is not trying to bust the union," wrote the ''Ottawa Citizen''. Pelletier said, "This store could easily have closed months ago and we didn't do that. We made a determination we were going to bargain [with employees] in good faith." [http://www.canada.com/ottawa/ottawacitizen/news/business/story.html?id=d2936f9b-234a-40b8-a137-43d6efd33cb4]
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==Labor Issues==
  
The Quebec store's 200 employees received accreditation with the [[United Food & Commercial Workers]] Canada union in summer 2004. They had been negotiating "since last October to reach a collective agreement" with store management. The same day that Quebec Labour Minister [[Michel Despres]] granted the UFCW workers binding arbitration on the contract, Wal-Mart announced that the store would be closed in May 2005. "It's a business decision, it's an economic-viability issue ultimately, but it's been exacerbated through added pressures," said Pelletier, referring to union demands for more workers and more work hours. [http://www.canada.com/ottawa/ottawacitizen/news/business/story.html?id=d2936f9b-234a-40b8-a137-43d6efd33cb4]
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===Walmart to Close 269 Stores; Job Losses Could Total 10,000 in U.S. and 6,000 Abroad===
  
Following the announcement of the store closure, ''O'Dwyer's'' reported, "Wal-Mart's in-house corporate affairs team is handling PR with help from Canadian firm [[National PR]]. ... National PR's Toronto and Montreal offices are assisting with the work, including French-language media outreach." [http://www.odwyerpr.com/members/0210walmart.htm]
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Walmart would close 154 stores in the U.S. and 115 additional stores globally, the corporation announced in a statement released January 15, 2016. That included 102 Walmart Express stores, a pilot program for smaller stores in urban locations. Doug McMillon, president and CEO of Wal-mart Stores, Inc., described the decision as "[a]ctively managing our portfolio of assets" to maintain "a healthy business."<ref name="sharpened focus"/> According to ''The New York Times'', competition from online retailers, "sluggish" consumer demand, and Walmart's "difficulties [...] in reaching more urban consumers" were major factors.<ref name="nytimes walmart to close"/>
  
== Opposing Wal-Mart ==
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Walmart, the largest private-sector employer in the U.S.,<ref name="nytimes walmart to close">Hiroko Tabuchi, "[http://www.nytimes.com/2016/01/16/business/walmart-to-close-269-stores.html Walmart to Close 269 Stores as Retailers Struggle]," ''The New York Times'', January 16, 2016.</ref> estimated that 16,000 workers would be affected, 10,000 of them in the U.S., and stated,
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:"the hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity."<ref name="sharpened focus">Walmart, "[http://news.walmart.com/news-archive/2016/01/15/walmart-continues-sharpened-focus-on-portfolio-management Walmart Continues Sharpened Focus on Portfolio Management]," press release, January 15, 2016.</ref>
  
Community opposition to Wal-Mart reportedly is growing. On April 6, 2004, voters in Inglewood, California, [http://reclaimdemocracy.org/personhood/walmart_california_ballot_initiative.html rejected] by a 2-to-1 margin a Wal-Mart-funded ballot initiative which would have voided multiple local regulations to allow Wal-Mart to build a new supercenter. "After announcing last year it would build 40 supercenters in California, the chain has opened only one unopposed - in La Quinta, a desert community 200 miles east of L.A." [http://www.csmonitor.com/2004/0408/p03s01-ussc.html]
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The decision marked the first time Walmart would shrink its total store footprint in the U.S.<ref name="sharpened focus"/>
  
Wal-Mart's response to the defeat - after it spent more than $1 million in PR for the Inglewood referendum - was remarkable for its dismissal of the democratic process. "We are disappointed that a small group of Inglewood leaders together with representatives of outside special interests were able to convince a majority of Inglewood voters that they don't deserve the job opportunities and shopping choices that others in the LA area enjoy," Wal-Mart told ''PR Week''.
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:"For Walmart, its workers are disposable," said Jess Levin, communications director at Making Change at Walmart, a group backed by the United Food and Commercial Workers International Union and a longtime critic of working conditions at the retailer.
  
==Public Relations Campaigns==
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:"These latest store closings could very well be just the beginning," she said. "This sends a chilling message to the company’s hard-working employees that they could be next."<ref name="nytimes walmart to close"/>
  
=== Putting the PR in NPR ===
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A list of store closings can be found [http://news.walmart.com/news-archive/2016/01/15/walmart-continues-sharpened-focus-on-portfolio-management#anchor here].
  
In August 2004, the ''New York Times'' [http://reclaimdemocracy.org/walmart/npr_journalism_schools.html reported] that Wal-Mart, "stung by criticism of its labor practices, expansion plans and other business tactics, is turning to public radio, public television and even journalists in training to try to improve its image." Wal-Mart's new media-related philanthopy includes [[National Public Radio]] sponsorship, underwriting the popular "[[Tavis Smiley]]" talk show, and "plans to award $500,000 in scholarships to minority students at journalism programs around the country, including [[Howard University]], [[University of Southern California]] and [[Columbia University]]."[http://www.nytimes.com/2004/08/16/business/16walmart.html].
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===Bloomberg Businessweek: Walmart Works with Defense Contractor, FBI Terrorism Task Force to Surveil Worker Organizing and Protests===
  
[[Mona Williams]], a spokesperson for Wal-Mart, said the company had "no hidden agenda," although it has not supported journalism in the past. "We've really been in the spotlight and I think that's made us especially sensitive to the need for balanced coverage," Williams said. "It doesn't matter if the subject is Wal-Mart or something else. You just aren't going to have that unless different perspectives are represented." NPR's underwriter announcements for Wal-Mart include a claim that the store brings "communities job opportunities, goods and services and support for neighborhood programs."[http://www.nytimes.com/2004/08/16/business/16walmart.html]
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Walmart had "hired an intelligence-gathering service from Lockheed Martin, contacted the FBI, staffed up its labor hotline, ranked stores by labor activity, and kept eyes on employees (and activists)" active in OUR Walmart, an employee group organizing for improved wages and job standards, ''Bloomberg Businessweek'' reported on November 24, 2015. The surveillance efforts were described in documents obtained through the discovery process as part a National Labor Relations Board hearing over OUR Walmart's accusations that the company had retaliated against employees involved in a 2013 protest.<ref name="walmart union surveillance">Susan Berfield, "[http://www.bloomberg.com/features/2015-walmart-union-surveillance/ How Walmart Keeps an Eye on Its Massive Workforce]," ''Bloomberg Businessweek'', November 24, 2015.</ref>
  
Williams said that the recipients of the scholarships will be invited to appear at guests in the audience at the next years annual general meeting.  
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Walmart did not comment specifically on the NLRB documents, but in a statement to ''Bloomberg'' said, "We are firmly committed to the safety and security of our 2.2 million associates as well as the 260 million customers we serve each week [...] Unfortunately, there are occasions when outside groups attempt to deliberately disrupt our business and on behalf of our customers and associates we take action accordingly."<ref name="walmart union surveillance"/>
  
In response to listener complaints, NPR ombudsman [[Jeffrey Dvorkin]] wrote, "Wal-Mart has been embroiled in anti-union controversies, accusations about its low-paid workers, the hiring of undocumented workers and the homogenizing effect of Wal-Mart in smaller communities. To its credit, NPR has reported this on a number of occasions. Some listeners wonder if Wal-Mart was motivated to purchase underwriting on NPR in an attempt to counteract that reporting. ... Wal-Mart symbolizes values that some listeners believe to be antithetical to the values of public radio."[http://www.npr.org/yourturn/ombudsman/2004/040225.html]
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Walmart's global security division, run by former FBI officer Kenneth Senser,<ref>Michael Barbaro, "[http://www.nytimes.com/2007/03/29/business/29walmart.html Bare-Knuckle Enforcement for Wal-Mart’s Rules]," ''The New York Times', March 29, 2007.</ref> includes an Analytical Research Center headed by Steve Dozier, former director of the Arkansas State Police.<ref name="walmart union surveillance"/> In testimony to the NLRB, Walmart labor relations executive Karen Casey said,
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:"When we received word of potential strikes and disruptive activity on Black Friday 2012, that’s when we started to ask the ARC to work with us [...] ARC had contracted with Lockheed leading up to Black Friday to help source open social media sites."<ref name="walmart union surveillance"/>
  
=== Telling Their Side of the Story ===
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Neither Walmart nor Lockheed would comment to ''Bloomberg'' about their contract at that time.<ref name="walmart union surveillance"/> However, ''Bloomberg'''s review of the NLRB documents found email sent to Walmart by a Lockheed Martin analyst monitoring activists' social media accounts, email showing that Lockheed Martin helped track a cross-country bus caravan of activists, and documents indicating that when Walmart's security team "heard that members of the Occupy movement might join the protests at corporate headquarters, they began working with the FBI Joint Terrorism Task Forces."<ref name="walmart union surveillance"/>
  
In September 2004, Wal-Mart CEO [[H. Lee Scott]] compalined, "We have not gotten our story out to the extent that we need to." [http://www.nytimes.com/2004/09/09/business/09walmart.html?ex=1252468800&en=0adff11c10a5bd76&ei=5090&partner=rssuserland] The head of the global super store told a retailing conference that Wal-Mart's bad reputation came from newspapers and television.
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:[Angela] Williamson, the former Walmart associate who became an OUR Walmart organizer, knew she was being monitored in Bentonville. “I sent a couple of fake tweets about where we would be or what we were doing. I don’t know if it worked,” she says. “I wonder how people feel about Walmart wasting money by hiring Lockheed Martin to read my tweets. I wouldn’t be happy about that if I was a shareholder.”<ref name="walmart union surveillance"/>
  
However, a ''New York Times'' editorial responded that "if Wal-Mart wants to improve its image, it should focus less on shaping its message and more on changing the way it does business. ... These damaging news stories are not a product of bad spin, but bad facts. If Wal-Mart wants to do a better job in telling its story, it needs to work on having a better story to tell." [http://www.nytimes.com/2004/09/14/opinion/14tue4.html]
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See the documents and read more about Walmart's monitoring of labor organizing in "[http://www.bloomberg.com/features/2015-walmart-union-surveillance/ How Walmart Keeps an Eye on Its Massive Workforce]," ''Bloomberg Businessweek''.
  
''PR Week'' reported that Wal-Mart is expanding its media relations team. "There's an acknowledgement throughout the company of the importance of using the media to tell our story," a company spokesperson said. "We're now putting more resources behind doing that." [http://www.prweek.com/news/news_story.cfm?ID=221980&site=3] Trade publication ''O'Dwyer's PR Daily'' call Wal-Mart's media department, asking for comment on the Times editorial. But the company said it had not decided whether or not to respond.[http://www.odwyerspr.com/members/0914walmart.htm]
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===Report: Suppliers Violate Labor and Environmental Standards While Walmart Neglects Enforcement (2015)===
  
[[Sam Walton]] started the [[Walton International Scholarship Program]] in 1985 to stem the tide of communism in Central America, and promote capitalism and privatization.[http://www.wispweb.org/scholarship/background.php]
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A 2015 report by the Food Chain Workers Alliance, which analyzed key suppliers in Walmart's food supply chain, "found numerous cases in which suppliers are failing to uphold Walmart’s compliance standards and in which Walmart is neglecting to enforce its own standards and goals... [including] illegal dumping of hazardous waste, improper protection of workers from occupational health and safety dangers, violations of  workers’ freedom of association, and, in some cases, slave and forced labor, both in the United States and abroad."<ref name="crossroads report">Food Chain Workers Alliance, Erika A. Inwold ed., "[http://foodchainworkers.org/wp-content/uploads/2015/06/Walmart-at-the-Crossroads-FINAL-06.04.15.pdf Walmart at the Crossroads: The Environmental and Labor Impact of its Supply Chain]," research report, June 4, 2015.</ref> The report also noted numerous cases in which Walmart had publicized major plans to improve labor conditions and lessen its environmental impact, but quietly discontinued the programs or saw them fall dramatically short of their goals.
  
=== Challenging "Urban Legends" ===
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Suppliers and contractors examined in the report included: Monterey Mushrooms, Inc., Giorgio Foods, Inc. (mushrooms); Naturipe Farms, LLC, SunnyRidge Farms/Dole Berry Company, Gerawan Farming, [[Chiquita]], [[Del Monte]], [[Dole Food]] (fruit); Taylor Farms (packaged salads); Flowers Foods (bread and baked goods); Cal-Maine Foods, Rose Acre Farms, Moark, LLC (eggs); [[Nestle|Nestlé S.A.]], [[Dean Foods]], Schreiber Foods, [[Land O' Lakes]] (dairy); [[Tyson Foods|Tyson Foods, Inc.]], Pilgrim’s Pride/JBS S.A., [[Perdue Farms|Perdue Farms, Inc.]] (chicken); [[Schneider National|Schneider Logistics]], and United Natural Foods, Inc. (warehouse and food distribution).<ref name="crossroads report"/>
  
Following disappointing Christmas 2004 sales, Wal-Mart launched a national PR blitz in January 2005. "We want to set a tone going into our fiscal year that starts Feb. 1, that Wal-Mart Stores is going to be aggressive in taking care of customers, taking care of our associates, communications and merchandising. It's just the tone that we want to set," explained CEO [[H. Lee Scott]]. [http://www.usatoday.com/money/industries/retail/2005-01-12-walmart-usat_x.htm]
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Some key findings in the report:<ref>Michele Simon, "[http://america.aljazeera.com/opinions/2015/6/walmarts-shady-food-suppliers-defy-corporate-spin.html Walmart’s corporate spin can’t defend shady food suppliers]," ''The Guardian'', June 15, 2015.</ref><ref name="crossroads report"/>
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* Seafood supplier Charoen Pokphand Foods has been tied to slave labor in southeast Asia
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* Federal suits over alleged discrimination have been filed against egg producers Rose Acre Farms and Cal-Maine Foods
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* Walmart itself does not pay a living wage to its own employees, and has been repeatedly accused of gender and racial bias in hiring and promotions in Walmart stores
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* The company is known for "greenwashing," including a 2010 promise to cut greenhouse gas emissions by 20 million metric tons by 2015, only 38 percent of which had been achieved by mid-2015; and a much-hyped 2010 "Heritage Agriculture" program to promote local foods, which had disappeared from Walmart's website by 2015.
  
The campaign, assisted by [[Hill & Knowlton]], included full-page "open-letter" ads in more than 100 newspapers, a new website, [http://walmartfacts.com walmartfacts.com], and extensive radio, TV and newspaper interviews with CEO Lee Scott. "For the first time in its 43 years, a Wal-Mart CEO is publicly responding to detractors," noted ''USA Today''. [http://www.usatoday.com/money/industries/retail/2005-01-12-walmart-usat_x.htm]
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Read the full report here: "[http://foodchainworkers.org/wp-content/uploads/2015/06/Walmart-at-the-Crossroads-FINAL-06.04.15.pdf Walmart at the Crossroads: The Environmental and Labor Impact of its Supply Chain]."
  
Scott alleged that mounting criticisms of the retail giant's labor practices, subcontractors and economic impact on communities were "becoming almost an urban legend." He added, "One of the things that strikes me is so many of the critics are people whose lifestyle doesn't change when the price of fuel changes, or if they keep a Wal-Mart store out of their area. They don't need competition. In some ways, people forget about average working people, and how they live their lives." [http://www.usatoday.com/money/industries/retail/2005-01-12-walmart-qanda_x.htm] Wal-Mart's newspaper ads struck a similar tone, saying the company's critics "are working only for themselves" while Wal-Mart "is working for everyone." [http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1000752304]
+
===Judge's Ruling for Truckers in Wage Suit Could Cost Walmart $100 Million in Back Pay (2015)===
  
In an interview with ''USA Today'', Scott said that walmartfacts.com will offer the "unfiltered truth" about the company and its impact on local communities. When asked why the new website doesn't include information on the class-action sex discrimination lawsuit against Wal-Mart, Scott responded, "We didn't leave it out for a particular reason. There are so many things that we deal with and aspects of society that you couldn't possibly put all of them in." [http://www.usatoday.com/money/industries/retail/2005-01-12-walmart-qanda_x.htm]
+
U.S. District Court Judge Susan Illston issued a summary judgement in May 2015 in favor of a group of truckers who had sued Walmart over claims that they had not been paid for all the time they worked. The ruling could cost Walmart between $100-150 million in back pay, according to the ''Fresno Bee''.<ref name="fresno bee">Pablo Lopez, "[http://www.fresnobee.com/news/local/article23598463.html Fresno law firm’s win against Wal-Mart could cost retailer $100 million]," ''Fresno Bee'', June 9, 2015.</ref> The class action suit, which included 720 current and former drivers for Walmart, "contend[ed] that Wal-Mart’s payment policies, as articulated in Wal-Mart's Driver Pay Manuals, violate California wage law by failing to pay drivers at least minimum wage for all of the time they work, including time spent on pre-trip and post-trip  inspections, rest breaks, wait time, fueling the tractor, washing the tractor and trailer, weighing the tractor and trailer and completing mandatory paperwork," as described in Illston's ruling.<ref name="illston judgement">U.S. District Judge Susan Illston, "[https://s3.amazonaws.com/s3.documentcloud.org/documents/2095229/order.pdf Case No. 08-cv-05221-SI; ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT]," legal document, May 28, 2015.</ref>
  
Wal-Mart spokeswoman Beth Keck  declined to reveal to the ''Globe and Mail'' what the cost of the campaign was preferring to describe it as being an "appreciable amount". "We've never been a company that puts a lot of resources into glitzy public relations ...But with size comes attention . . . We needed to do a better job of protecting our associates," she said.[http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050114/RWALMART14/TPBusiness/International]
+
Referring to Walmart's pay manuals, Illston wrote, "Here, certain required tasks are specifically designated unpaid activities... The Court finds that the pay policies detailed in the Manuals violate California wage law  by failing to pay drivers at least minimum wage for all of the time they work."<ref name="illston judgement"/>
  
===Wal-Mart's PR Sprawl===
+
A spokesperson for Walmart disputed the court's decision, saying, "There has been no finding that any Wal-Mart driver has not been paid minimum wage for each hour worked" and that Walmart would continue to fight the truckers' claims.<ref name="fresno bee"/>
  
According to spokesperson Mona Williams, in 2004 Wal-Mart began "to put corporate communications people in key cities and areas of the country where it operates." In April 2005, former director of public relations [[Gus Whitcomb]] was apparently demoted to regional corporate affairs director, in Dallas, Texas. Whitcomb's previous position was subsequently upgraded to "senior director of PR." The position remained unfilled, as of April 11, 2005. [http://prweek.com/news/news_story.cfm?ID=237191&site=3]
+
===Walmart Abruptly Closes Five Stores, Including Site of Strike; Blames Plumbing (2015)===
  
Wal-Mart's other regional corporate affairs / PR directors are located in San Francisco, Phoenix, and Washington, DC. The regional PR heads report to vice-president of field corporate affairs [[Carol Schumacher]]. [http://prweek.com/news/news_story.cfm?ID=237191&site=3]
+
Accusing Walmart of closing five stores, located in Texas, California, Oklahoma, and Florida, and laying off 2,200 workers in retaliation for union organizing, a group of workers represented by the United Food and Commercial Workers International Union (UFCW) filed a complaint with the National Labor Relations Board on April 20, 2015.<ref>Hiroko Tabuchi, "[http://www.nytimes.com/2015/04/20/business/laid-off-walmart-workers-head-to-labor-board.html?_r=0 Laid-Off Walmart Workers Head to Labor Board ]," ''The New York Times'', April 20, 2015.</ref> In the complaint, the UFCW stated that one of the closed locations, a store in Pico Rivera, California, had been a central site for worker organizing and protests since 2012, including the first Walmart workers' strike in the United States, and noted that Walmart had previously been ruled by the Canadian Supreme Court to have broken Canadian law by closing a store in retaliation for unionizing.<ref>United Food and Commercial Workers International Union, "[http://www.scribd.com/doc/262471683/Pico-NLRB-Filing#scribd Pico NLRB Filing]," copy of complaint filed with National Labor Relations Board, April 19, 2015.</ref>
  
Also in April 2005, ''O'Dwyer's PR Daily'' reported that Wal-Mart hired the New York PR firm [[The Marino Organization]]. Marino focuses "on the real estate and land development sector," and counts among its clients "[[Home Depot]], [[Hudson Yards Coalition]] - a group which supports a controversial stadium on Manhattan's West Side - and [[Brooklyn Bridge Development Corporation]]." [http://www.odwyerpr.com/members/0411walmart_real.htm]
+
An ABC News affiliate in Tampa, Florida reported that the closings happened abruptly: "In a nearly identical manner at every store, Walmart corporate officials visited the five locations, called an impromptu meeting in the back of the store and told employees that the stores would be closing that evening." ABC described the scene outside the Florida store as chaotic.<ref name="abc permits">Adam Walser, "[http://www.abcactionnews.com/news/local-news/i-team-investigates/i-team-wal-mart-stores-that-were-suddenly-closed-for-plumbing-issues-havent-sought-permits I-Team: Walmart stores that were suddenly closed for plumbing issues haven't sought permits]," ''ABC News'', WFTS Tampa Bay, April 15, 2015.</ref>
  
Wal-Mart increased in New York-area PR efforts, after being "dropped from a development push in Queens" in February 2005. Marino, reported ''O'Dwyer's'', "Marino has been touting a Wal-Mart-sponsored survey in New York - surveys are a favorite PR tactic for the retailer." Survey results include that 62 percent of respondents said they would "welcome the retailer," 69 percent said "they thought Wal-Mart stores create jobs," and 75 percent "thought Wal-Mart's stated wage of $10.38/hour in metropolitan areas is 'fair and decent'." [http://www.odwyerpr.com/members/0411walmart_real.htm]
+
Walmart has denied allegations of labor violations and has claimed that the stores had been closed to fix plumbing issues. But an investigation by ABC News found "none of the five affected stores have sought any plumbing permits for future repairs," and that in Pico Rivera, a store manager and City Manager James Enriquez reported seeing no evidence of plumbing problems or of plumbing work being done at the store.<ref name="abc permits"/>
  
On a national level, Wal-Mart receives PR assistance from [[Fleishman-Hillard]] and [[Hill & Knowlton]]. [http://www.odwyerpr.com/members/0411walmart_real.htm]
+
===Walmart Ordered to Pay $188 Million in Wage Theft Lawsuit (2014-2015)===
  
===The Hurricane Katrina Halo===
+
In December 2014 the Pennsylvania Supreme Court confirmed earlier court decisions from 2006, 2007 and 2011 that require Walmart to pay $151 million in lost wages and damages and $36 million in attorney fees for underpaying wages to Wal-Mart and Sam’s Club employees in Pennsylvania from 1998-2006.<ref name="188m class action">Shailaja Sharma and Nathan Layne, "[http://www.reuters.com/article/2014/12/16/us-walmart-lawsuit-idUSKBN0JU1XJ20141216 Wal-Mart must pay $188 million in workers' class action]," ''Reuters'', December 16, 2014.</ref> The court confirmed that Walmart forced employees to miss or shorten paid rest breaks and to work “off the clock” after punching out. The ruling is expected to affect approximately 187,000 employees and former employees.
  
"Wal-Mart Stores Inc. is enjoying its best publicity in years as even its harshest critics laud the retailer's [[Hurricane Katrina]] relief efforts," reported ''Reuters'' in mid-September 2005. Following the hurricane which devastated several U.S. Gulf Coast states, the retailer promptly made significant contributions to relief efforts, including a $20 million cash donation, 15,000 truckloads of merchandise, 100,000 free meals, mobile pharmacies, and "the promise of an unconditional work transfer for all displaced employees," according to ''PR Week''. CEO H. Lee Scott said Wal-Mart's generous response "had nothing to do with getting good press," but: [http://www.boston.com/news/nation/articles/2005/09/19/wal_mart_rides_good_pr_plans_secret_spin_strategy/]
+
A Walmart spokesperson told ''Reuters'', "Walmart has had strong policies in place to make sure all associates receive their appropriate pay and break periods."<ref name="188m class action"/> Despite having lost at every appeal, the company has again appealed the decision, this time to the U.S. Supreme Court, arguing that the workers' claims should not have been grouped into a class action suit.<ref>Tim Stuhldreher, "[http://lancasteronline.com/business/local_business/wal-mart-appeals-m-pa-class-action-case-to-u/article_c1274656-d1a4-11e4-afc1-eb14770ae8eb.html Wal-Mart appeals $187M Pa. class-action case to U.S. Supreme Court]," ''Lancaster Online'', March 23, 2015.</ref>
:Stories of the company's generosity and reports of 11,000 people lining up for 400 jobs at a new Wal-Mart in Oakland, California, have helped turn the tide on the barrage of bad news that has dogged the retailer for years. "Those stories become harder and harder to spin to the negative," Scott said.
 
  
At this time, Scott also "started to drop hints about a secret spin strategy to counter a union-backed, anti-Wal-Mart media blitz that he says is not going to go away," reported ''Reuters''. While neglecting to reveal details of the campaign, Scott said in one speech, "It is not a matter of Wal-Mart just needing to hire public relations people. ... This is a significant issue that we face and has to be dealt with ... internally, in the company, without allowing our plans to be public." [http://www.boston.com/news/nation/articles/2005/09/19/wal_mart_rides_good_pr_plans_secret_spin_strategy/]
+
===Canadian Supreme Court Rules Walmart Closed Unionized Store Illegally===
  
According to Wal-Mart spokesperson [[Mona Williams]], "This isn't simply a public relations strategy to pretty up an image. ... Rather, it is an energetic attempt to tell our story and also become a better company in the process." An organizer with the "[[Wake-Up Wal-Mart]]" campaign critiquing the retailer countered, "If Wal-Mart chose to do the right thing every day, they wouldn't need a super-secret public relations strategy." [http://www.boston.com/news/nation/articles/2005/09/19/wal_mart_rides_good_pr_plans_secret_spin_strategy/]
+
In 2005, Walmart closed a store in Jonquière, Quebec shortly after workers voted to form a union, becoming the first unionized Walmart store in North America. Walmart claimed that the store was unprofitable, but workers filing the lawsuit believed the company had retaliated against the organizing effort. The Canadian Supreme Court ruled against workers in their first lawsuit, alleging violations of the right to free association, in 2009. A second suit in 2013 argued "that the company violated a provision of the Quebec labour code by changing the workers’ conditions of employment without consent while the terms of the collective agreement were being negotiated. In 2014, the Court upheld an arbitrator's ruling that Walmart had violated Quebec labor laws by closing the store. <ref>"[http://www.cbc.ca/news/canada/montreal/quebec-unionized-wal-mart-workers-win-supreme-court-victory-1.2689646 Quebec unionized Wal-Mart workers win Supreme Court victory]," ''CBC News'', June 27, 2014.</ref>
  
Corporate crisis specialist and PR executive [[Eric Dezenhall]] cautioned Wake-Up Wal-Mart and other critics such as [[Wal-Mart Watch]] from criticizing the giant retailer so soon after its Hurricane Katrina donations. Dezenhall said, "I think that the timing is not ideal for Wal-Mart attackers right now, while (Wal-Mart) is enjoying a much-needed halo. It strikes me as a rather graceless time to launch an attack because it's just a matter of time before this halo burns off. If I were Wal-Mart, I would be glad that my adversaries were attacking in this cycle." [http://www.nwaonline.net/articles/2005/09/14/business/01wmcritics.txt]
+
==Majority of Walmart Workers Paid Less Than $25,000 a Year==
  
===Engaging in the Debate Over the Economic Impact of Wal-Mart===
+
Estimates of the average hourly wage for Walmart associates vary, but several independent sources put it under $9.00 per hour. An independent study found that the average Walmart associate makes just $8.81 per hour<ref>Courtney Gross, “[http://www.gothamgazette.com/index.php/economy/694-is-wal-mart-worse Is Wal-Mart Worse?],” ''Gotham Gazette'', February 14, 2011.</ref> and a July 2014 report found that Walmart cashiers average $8.48/hour.<ref>Shelly Banjo, "[http://blogs.wsj.com/corporate-intelligence/2014/07/23/pay-at-wal-mart-low-at-the-checkout-but-high-in-the-managers-office/ Pay at Walmart: Low at the Check-out but High in the Manager's Office]," ''Wall Street Journal'', July 23, 2014. </ref>
  
In November 2005 Wal-Mart "unveiled a new weapon ... the most comprehensive study to date on the retailer's impact on the U.S. economy." The study, paid for by Wal-Mart and conducted by Global Insight, concluded the retailer saved the average American $2,329 and created 210,000 jobs in 2004. It also tied a 2.2 percent wage decrease to Wal-Mart, but claimed the "nominal" fall was offset by lower prices. The study didn't address employee benefits or working conditions. [http://www.globalinsight.com/About/PressRelease/PressRelease2439.htm] The study was one of 10 papers presented at a Washington DC [http://www.globalinsight.com/MultiClientStudy/MultiClientStudyDetail2438.htm conference] sponsored by Wal-Mart, with "five of them at least somewhat critical of Wal-Mart's ruthlessly low-cost business model," reported the ''Wall Street Journal''.  Wal-Mart's Bob McAdam said that while "some conclusions might not be favorable ... if everything was one-sided, it would not be credible." Asked Tracy Sefl, of the activist group Wal-Mart Watch, "Will they act on any of the studies that show they have negative effects on a community?" [http://online.wsj.com/article/SB113107036917888114.html?mod=home_whats_news_us]
+
A Walmart pay plan<ref>Sam's Club Walmart Stores Inc, "[http://big.assets.huffingtonpost.com/Walmart_0.pdf Field Non-Exempt Associate Pay Plan FY 2013]," Walmart Stores, Inc., February 11, 2012. </ref> published in the ''Huffington Post'' frequently uses a wage of $8.00/hr in its examples of how to determine associate pay.<ref>Alice Hines and Christina Wilkie, "[http://www.huffingtonpost.com/2012/11/16/walmarts-internal-compensation-plan_n_2145086.html Walmart's Internal Compensation Documents Reveal Systematic Limit on Advancement]," ''Huffington Post'', November 16, 2012.</ref>
  
==Charm Offensive in New York==
+
At $8.81/hour, an employee who works Walmart's definition of full-time (34 hours per week)<ref>Susan Chambers, "[http://www.nytimes.com/packages/pdf/business/26walmart.pdf Reviewing and Revising Wal-Mart’s Benefits Strategy, Memorandum to the Board of Directors]," ''New York Times'', October 26, 2005.</ref> makes just $15,500 per year. The websites Glassdoor and Pay Scale also indicate hourly wages below $10/hour. The company will frequently cite higher numbers by lumping managers in with its averages and excluding part-time and temporary workers.<ref>"[http://makingchangeatwalmart.org/files/2013/08/walmart-wages-8-22-13-b.pdf The Reality of Walmart Wages]," Making Change at Walmart website, accessed August 2013.</ref>
  
"Wal-Mart has begun a media relations and community outreach effort to improve its image [in New York City] as it seeks future sites for local stores," ''PR Week'' writes. "The retailing giant has begun advertising in community papers across the city and plans to expand those ads to the ethnic press, radio, and television." Working with the New York-based PR firm [[The Marino Organization]], Wal-Mart has spoken with journalists from several NYC papers and "is seeking meetings with the presidents of New York's five boroughs and with other community leaders," ''PR Week'' reports. [http://www.prweek.com/news/news_story.cfm?ID=239889&site=3&setcookie=1] The company has hoped to open new stores in Staten Island and Queens, but so far as encountered community resistance.
+
In a September 2013 address to investors at Goldman Sachs, Walmart US CEO Bill Simon told the audience that "over 475,000 (Walmart) associates earned more than $25,000 last year."<ref>"[http://cdn.corporate.walmart.com/36/a1/d580664943b388ebe50b9ea4ec00/walmart-at-goldman-sachs-global-retail-conference-transcript-2013.pdf Edited Transcript, WMT – Walmart at Goldman Sachs Global Retailing Conference]," ''Thomson Reuters Streetevents'', September 11, 2013.</ref>
  
==Wal-Mart the Culture Police==
+
Walmart has 1.4 million associates in the U.S., including 1 million hourly associates in its stores. Mr. Simon's statement means that the majority of Walmart employees are paid less than $25,000 a year.<ref name="Barfield">Susan Berfield, "[http://www.businessweek.com/articles/2013-10-23/more-than-half-of-walmarts-hourly-workers-make-less-than-25-000 More Than Half of Walmart's Hourly Workers Make Less Than $25,000/Year]," ''Business Week'',  October 23, 2013.</ref>
  
"Wal-Mart, America's largest retailer, prides itself on being a 'family-friendly' store, with smiley faces guiding stressed-out breadwinners to a land of low-cost, guilt-free consumption," writes Amy Schiller. But it has become "the self-appointed culture police by screening the music, books and magazines that many Americans will be able to access. ... Take, for example, Wal-Mart's refusal to sell Sheryl Crow's self-titled album in 1996, citing objections to a lyric that criticized Wal-Mart for selling handguns. ... The huge bestseller, America: the Book, featuring Jon Stewart, Stephen Colbert, and the rest of the Daily Show crew, was banned from Wal-Mart in 2004." Wal-Mart also refused to carry Robert Greenwald's documentary, "Uncovered: The Whole Truth About the Iraq War." Even "something as potentially broadly appealing, positive, and utterly non-offensive as a T-shirt reading 'Someday a woman will be president' was pulled from the sales floor because 'the message goes against Wal-Mart family values.'" [http://www.alternet.org/wiretap/24069/]
+
Though a Walmart spokesperson disputed some of the figures, he did confirm that a majority of Walmart's hourly Associates earn less than $25,000 a year.<ref name="Barfield"/>
  
==Personnel==
+
In August 2014, a Walmart assistant manager from Oklahoma wrote to Gawker about the incentives for store managers to keep payroll costs down and the consequences: "Their pay can get doubled if they meet certain criteria. A huge part of it is keeping your payroll costs down. Which means gradually forcing the long time employees out. And replacing them with temporary workers, who are not eligible for healthcare, time off, or even a discount card. Most of these people start off at $7.90 an hour and are already on public assistance."<ref>Hamilton Nowlan, "[http://gawker.com/a-walmart-manager-describes-walmarts-mismanagement-1625530679 A Walmart Manager Describes Walmart's Mismanagement]," ''Gawker'', August 22, 2014.</ref>
*[[H. Lee Scott]] chief executive officer
 
*[[Mona Williams]] vice-president of communications
 
*senior director of PR (position unfilled as of April 11, 2005)
 
*[[Carol Schumacher]] vice-president of field corporate affairs
 
*[[Tom Gean]] vice-president of the legal department
 
*[[Laurie Smalling]] manager of corporate affairs
 
  
Regional corporate affairs / PR directors:
+
===Minimum Wage Campaigns Push Walmart to Raise Base Wages===
*[[Gus Whitcomb]], Dallas, Texas
 
*San Francisco, California
 
*Phoenix, Arizona
 
*Washington, DC
 
  
==Books, Reports & Films==
+
In late 2014, ''Reuters'' reported that Walmart would be forced to increase base wages in over one-third of its U.S. stores due to increases to the minimum wage in numerous states across the country. The information was contained in a leaked internal memo, which went on to explain that the company would narrow the gap between lower paid positions and higher paid positions to help absorb some of the cost. Reuters quoted an anonymous manager who explained, "Essentially that wage compression at the upper level of the hourly associate is going to help absorb that cost of the wage increase at the lower level."<ref>Nathan Layne, "[http://www.reuters.com/article/2014/12/24/us-walmart-wages-idUSKBN0K20AE20141224 Exclusive: U.S. minimum wage hikes to affect 1,400-plus Walmart stores]," ''Reuters'', December 24, 2014.</ref>
*National Committee On Response Philanthropy, "[http://ncrp.org/press_room/index.asp?Article_Id=73 The Waltons and Wal-Mart: Self-Interested Philanthropy]", September 2005. For sale for $US25.
 
*[[Robert Greenwald]]'s 2005 documentary [[Wal-Mart: The High Cost of Low Price]]
 
  
==Wal-Mart's PR Companies==
+
In February 2015, the company made an official announcement that it would increase the base wage to $9 per hour, which would affect around 500,000 workers. According to the ''Washington Post'', "boosting half a million workers to $9 an hour will only cost it $1 billion over a year [...] which is a small chunk of the company’s $485.7 billion in revenue in fiscal 2015."<ref name="wapo wage hike"/> As a result, Walmart estimated its "average hourly wage for full-time workers will rise to $13 from $12.85 this year, while the average for part-time workers will rise to $10 from $9.48," ''Reuters'' reported.<ref name="reuters walmart pressure"/>
*[[Edelman]]
+
 
 +
In an analysis released in February 2015, the [[Economic Policy Institute]] found "that while wages have continued to sink for people at most income levels through the economic recovery, since 2012, they have actually risen for the bottom 10 percent -- which suggests that, at a time when the economy is creating more low-wage jobs than high-wage ones, it might actually have to pay a little bit more in order to fill them," according to the ''Washington Post''.<ref name="wapo wage hike"/> The EPI said the increase "can be attributed to a series of state-level minimum-wage increases, which have been proven to lift wages, particularly at the bottom of the wage distribution."<ref>Elise Gould, Economic Policy Institute, "[http://www.epi.org/publication/stagnant-wages-in-2014/ 2014 Continues a 35-Year Trend of Broad-Based Wage Stagnation]," organizational report, February 19, 2015.</ref> The ''Washington Post'' suggested that for Walmart, the "profit motive" was an additional factor:
 +
 
 +
:"And Wal-Mart itself might have figured that putting more money in the pockets of its workers -- who are also its customer base -- might generate consumer demand that could boost its sagging profits.
 +
 
 +
:"But the other thing that’s going on, of course, is a massive and sustained campaign by union-backed groups like OUR Walmart, which have been shaming Wal-Mart about its low wages for several years now [...] Public opinion is solidly in favor of a higher minimum wage, which would be nearly $11 if it had kept up with inflation since the 1960s. And in the absence of congressional action, cities and states have been boosting their own minimums accordingly -- sometimes even with Republican support."<ref name="wapo wage hike">Lydia DePillis, "[http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/19/the-profit-motive-behind-walmarts-minimum-wage-hike/ The profit motive behind Wal-Mart’s minimum wage hike]," ''Washington Post'' Wonkblog, February 19, 2015.</ref>
 +
 
 +
The ''Washington Post'' also suggested that the voluntary increase -- "as well as giving employees more control over scheduling, another key demand of labor groups -- potentially protects Walmart from a greater threat: Labor organizing. If employees see that they can win improvements in their working conditions without actually joining a union, they might be less likely to take a step that could give them real bargaining power over the long term."<ref name="wapo wage hike"/>
 +
 
 +
According to ''Reuters'', labor "welcomed Wal-Mart's decision as a delayed step in the right direction":
 +
 
 +
:"'For years Walmart has kicked and screamed that raising wages was not a feasible business model,' AFL-CIO President Richard Trumka said in a statement. 'Workers everywhere are glad to see Walmart change their view.'
 +
 
 +
:"Others reiterated their call for it to pay least $15 an hour, which they say represents the minimum 'living wage' for U.S. workers.
 +
 
 +
:"The changes by Walmart 'are inadequate for the hundreds of thousands of employees who struggle to support themselves and their families,' Christine Owens, executive director of the National Employment Law Project, said in a statement."<ref name="reuters walmart pressure">Sruthi Ramakrishnan and Nathan Layne, "[http://www.reuters.com/article/2015/02/19/us-walmartstores-results-idUSKBN0LN1BD20150219 Wal-Mart, under pressure, boosts minimum U.S. wage to $9 an hour]," ''Reuters'', February 19, 2015.</ref>
 +
 
 +
Michael Saltsman, who works for the PR firm [[Berman & Co.]] and its [[Employment Policies Institute]] "think tank,"<ref>Jody Knauss and Mary Bottari, "[https://www.prwatch.org/news/2015/02/12741/walmart-wages-perspective Walmart Wages in Perspective]," ''PR Watch'', February 20, 2015.</ref> told the ''Washington Post'', "Just because a $10 minimum wage is the right choice for Walmart ... does not mean it should be mandated for all other businesses, regardless of industry or size."<ref name="wapo wage hike"/>
 +
 
 +
===Worker Reliance on Public Assistance===
 +
 
 +
Because of Walmart's low pay, hundreds of thousands of Walmart workers are forced to utilize state subsidized benefits, including food stamps and public housing. Multiple reports have examined this issue:
 +
 
 +
* An April 2014 study by Americans for Tax Fairness estimated that subsidies and tax breaks for Walmart and the Walton family cost taxpayers $7.8 billion per year, including approximately $6.2 billion in assistance to Walmart workers due to low wages and benefits.<ref>Americans for Tax Fairness, "[http://www.americansfortaxfairness.org/walmart-on-tax-day/ Walmart on Tax Day: How Taxpayers Subsidize America's Biggest Employer and Richest Family]," organizational website, accessed April 2014.</ref>
 +
 
 +
* An April 2014 Marketplace series found that Walmart is the largest beneficiary of dollars from the Supplemental Nutrition Assistance Program, also known as food stamps. The company receives roughly 18 percent of all food stamp dollars, more than $13 billion in revenue.<ref>Krissy Clark, "[http://www.slate.com/articles/business/moneybox/2014/04/big_box_stores_make_billions_off_food_stamps_often_it_s_their_own_workers.html The Secret Life of a Food Stamp]," ''Slate'' and ''Marketplace'', April 1, 2014.</ref>
 +
 
 +
* A study by Good Jobs First found that, in many states, Walmart tops the lists of employers whose workers are most reliant on government assistance.<ref>Good Jobs First, "[http://www.goodjobsfirst.org/corporate-subsidy-watch/hidden-taxpayer-costs Hidden Taxpayer Costs:Disclosures of Employers Whose Workers and Their Dependents are Using State Health Insurance Programs]," organizational website, accessed July 24, 2013.</ref>
 +
 
 +
* A May 2013 Congressional report calculated that Walmart workers are forced to rely on $900,000 in taxpayer support, including food stamps and healthcare, at just one of the company's 4,000 U.S. stores.<ref>Democratic Staff of the U.S. House Committee on Education and the Workforce, "[http://democrats.edworkforce.house.gov/sites/democrats.edworkforce.house.gov/files/documents/WalMartReport-May2013.pdf The Low-Wage Drag on Our Economy: Walmart's Low Wages and Their Effect on Taxpayer and Economic Growth]," governmental website, May 2013.</ref>
 +
 
 +
===Increased Use of Temporary Workers===
 +
 
 +
In June 2013, widespread reports indicated that Walmart was increasing hiring of temporary workers. At the time, Walmart spokesperson David Tovar said that less than 10 percent of Walmart’s U.S. workforce was temporary, compared with one or two percent previously. The ranks of full-time permanent staff are "reportedly getting slimmer and slimmer."<ref>Dhanya Skariachan and Jessica Wohl, "[http://www.reuters.com/article/2013/06/13/us-walmart-hires-temps-idUSBRE95C05820130613 Walmart's Everyday Hiring Strategy: Add More Temps]," ''Reuters'', June 13, 2013. </ref>
 +
 
 +
===Potential Impact of Wage Increases at Walmart===
 +
 
 +
The retail sector, specifically, is the largest industry by employment in the United States, and is projected to add almost 1.1 million jobs between 2012 and 2022, more than most other industries. A study by Demos found that raising pay to a minimum of $25,000/year for full-time work at the nation's largest retailers, including Walmart, would lift more than 1.5 million retail workers and their families up from poverty or near poverty.<ref>Catherine Ruetschlin, Demos, "[http://www.demos.org/publication/retails-hidden-potential-how-raising-wages-would-benefit-workers-industry-and-overall-ec Retail's Hidden Potential: How Raising Wages Would Benefit Workers, the Industry and the Overall Economy]," organizational report, November 19, 2012.</ref>
 +
 
 +
==Walmart is a Driving Force in U.S. Imports and Related Offshoring of U.S. Jobs==
 +
 
 +
Walmart has long promoted free trade agreements that offshore U.S. jobs. From the 1994 NAFTA, to the 1995 World Trade Organization, to the 2000 China free trade agreement to the 2014 negotiations over the TransPacific Partnership (TPP) Walmart has pushed for agreements that offshore jobs and fuel a race to the bottom in U.S. wages and living standards. In 2014, Walmart pushed for a Fast Track trade bill<ref>Walmart, "[http://news.walmart.com/news-archive/2014/01/10/walmart-statement-on-the-introduction-of-trade-promotion-authority Walmart Statement on the Introduction of Trade Promotion Authority]," Organizational  Press Release, January 10, 2014.</ref> and was a member of the U.S. Business Coalition for the TPP.<ref>U.S. Business Coalition for the TPP, "[http://www.tppcoalition.org/Members%20of%20the%20Coalition.pdf Members of the Coalition]," organizational webpage, accessed August 13, 2014. </ref>
 +
 
 +
According to the Journal of Commerce, Walmart was the largest importer of goods to the United States in 2013.<ref>Marsha Salisbury, “[http://www.joc.com/international-trade-news/trade-data/united-states-trade-data/top-100-importers-2013.html Top 100 US Importers in 2013],” ''Journal of Commerce'', May 23, 2014.</ref> In 2013, Walmart imported the equivalent of 731,500 containers to the United States, more than two-and-a-half times the volume of goods it imported in 2002. In 2013, Walmart was responsible for 1 in 25 containers imported into the United States.<ref>Total TEU's taken from Cori Rogers, "[http://www.zepol.com/blog/post/2014/1/31/us-imports-in-2013-were-the-highest-in-six-years.aspx US Importers in 2013 Were the Highest in Six Years]," Zepol's Blog of U.S. Imports and Exports, January 31, 2014. </ref>
 +
 
 +
===Report: Walmart's Global Web of Subsidiaries Aids Tax Avoidance (2015)===
 +
[[File:Walmart_web_Luxembourg.png|thumb|right|450px|Partial diagram of Walmart's web of subsidiaries. Source: [http://www.americansfortaxfairness.org/files/TheWalmartWeb-June-2015-FINAL.pdf Americans for Tax Fairness.]]]
 +
In a 2015 report, Americans for Tax Fairness (ATF) identified 78 Walmart subsidiaries located in 15 tax havens, countries in which Walmart has no retail operations and few or no employees, that the company is apparently using to shield income for tax purposes. These subsidiaries, not previously disclosed in Walmart's public filings to the Securities and Exchange Commission, appear to allow Walmart to shift assets and profits from higher tax to lower tax locations to minimize the taxes it pays.<ref name="walmart web"/>
 +
 
 +
For example, ATF uncovered that Walmart has shifted ownership of at least $45 billion in assets to subsidiaries since 2009, including transferring ownership of operating companies for its stores in Japan, Brazil, South Africa, and Puerto Rico, to 22 shell companies in Luxembourg. Despite the fact that Walmart has no retail stores in the country and only a handful of employees, the Luxembourg shell companies hold $64.2 billion in Walmart assets--fully 75 percent of the company's International Division's assets--and paid taxes of less than 1 percent on $1.3 billion in profits between 2010 and 2013.<ref name="walmart web"/>
 +
 
 +
Additionally, while U.S. law requires companies that want to reinvest foreign profits in its domestic business to first pay U.S. taxes on those earnings, Walmart appears to have gotten around this requirement by having company subsidiaries based in Luxembourg make low-interest, short-term loans to U.S. companies "without paying any U.S. tax." According to the report,
 +
 
 +
:Such a financial maneuver would mimic [[Hewlett-Packard|Hewlett-Packard’s]] "de facto repatriation" of offshore funds using serial short-term loans, a program that was exposed by the U.S. Senate Permanent Subcomittee on Investigations (PSI) in 2012...
 +
 
 +
:During the first half of 2014, Wal-Mart Stores, Inc. took $2.4 billion in short-term loans from seven of its Luxembourg subsidiaries. Where disclosed, the interest rates on these loans were minimal – from 0.25 percent to 0.28 percent... Walmart’s use of short-term loans could permit the company to effectively use pre-U.S. tax earnings to fund its domestic operations, which would transgress the intent of U.S. law.<ref name="walmart web"/>
 +
 
 +
ATF notes that Walmart may hope to take advantage of a future voluntary repatriation tax holiday, as happened in 2004, in which companies would be allowed to repatriate foreign earnings at a low or even zero tax rate. Walmart's CEO has previously testified to Congress to argue for a system that would simply exempt foreign earnings from U.S. tax.<ref name="walmart web"/>
 +
 
 +
ATF's report may not provide a complete picture of Walmart's "complex and opaque" business structure due to a lack of disclosure requirements and the company's lack of transparency, the report notes.<ref name="walmart web">Americans for Tax Fairness, "[http://www.americansfortaxfairness.org/files/TheWalmartWeb-June-2015-FINAL.pdf The Walmart Web: How the World's Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes]," investigative report, June 2015.</ref> A Walmart spokesperson told ''Reuters'' that the report contained errors and was misleading.<ref>Sruthi Ramakrishnan and Nathan Layne, "[http://www.reuters.com/article/2015/06/17/us-wal-mart-stores-taxavoidance-idUSKBN0OX1IL20150617 Wal-Mart uses tax havens to cut taxes on foreign units: advocacy group]," ''Reuters'', June 17, 2015.</ref>
 +
 
 +
===Walmart's Importing and Offshoring Strategy===
 +
 
 +
The United States established permanent normal trade relations with China in 2000. An economist with the Economic Policy Institute estimated that Walmart was responsible for $27 billion in US imports from China in 2006 and 11% of the growth of the total US trade deficit with China between 2001 and 2006, with Walmart’s imports during this period leading to the elimination of 200,000 US jobs.<ref>Robert E. Scott, "[http://www.epi.org/publication/webfeatures_snapshots_20070627/ Walmart's Reliance on Chinese Imports Costs U.S. Jobs]," Economic Policy Institute, June 27, 2007. </ref>
 +
 
 +
In 2004, Duke Professor Gary Gereffi told PBS Frontline that “Walmart and China are a joint venture. And both are determined to dominate the U.S. economy as much as they can.”<ref>Hedrick Smith and Rick Young, "[http://www.pbs.org/wgbh/pages/frontline/shows/walmart/ Is Walmart Good for America?]," ''PBS Frontline'', air date, November 16, 2004. </ref>
 +
 
 +
Nobel Prize-winning economist Paul Krugman attributed the speed with which Chinese imports grew to Walmart. “One of the things that limits or slows the growth of imports is the cost of establishing connections and networks.  Walmart is so big and so centralized that it can all at once hook Chinese and other suppliers into its digital system. So – wham! – you have a large switch to overseas sourcing in a period quicker than under the old rules of retailing.”<ref>Charles Fishman, "[http://www.fastcompany.com/47593/wal-mart-you-dont-know The Walmart You Don't Know]," Fast Company, December 1, 2003.</ref>
 +
 
 +
Professor Gereffi further emphasizes the importance of Walmart's role in facilitating Chinese imports to the United States:
 +
<blockquote>
 +
''Walmart gives Chinese suppliers the specifications for Walmart products and they teach those suppliers how to meet those specifications. They have to do with price, they have to do with quality, they have to do with delivery schedule. So, in a sense, Chinese suppliers, learn how to export to the U.S. market through large retailers like Walmart.''<ref>Hedrick Smith and Rick Young, "[http://www.pbs.org/wgbh/pages/frontline/shows/walmart/ Is Walmart Good for America?]," ''PBS Frontline'', air date, November 16, 2004 </ref>
 +
</blockquote>
 +
 
 +
Due to Walmart's size, "even the largest suppliers must comply with its demands for lower and lower prices because they cannot afford to have their goods taken off its shelves. Companies that used to manufacture products in the United States, from Levi’s jeans to Master Lock, were pressured to shut their U.S. factories and moved manufacturing abroad to meet Walmart’s demand for low prices."<ref name="AmyTraub">Amy Traub, "[http://www.demos.org/publication/not-made-america-top-10-ways-walmart-destroys-us-manufacturing-jobs Not Made in America: Top 10 Ways Walmart Destroys U.S. Manufacturing Jobs]," Demos, July 2, 2012.</ref> In turn, Walmart’s business model accelerated the use of offshore suppliers by its competitors, contributing to a greater loss of American manufacturing jobs.<ref name="AmyTraub"/>
 +
 
 +
===Walmart Announces US Manufacturing Initiative, Many Questions Remain (2013)===
 +
 
 +
In January 2013, Walmart U.S. CEO Bill Simon first announced that the company would increase its purchases of American products, initially committing to buy an additional $50 billion in U.S. products over 10 years.<ref>Walmart Stores,"[http://news.walmart.com/news-archive/2013/01/15/walmart-to-boost-sourcing-of-us-products-by-50-billion-over-the-next-10-years Walmart to Boost Sourcing of U.S. Products by $50 Billion Over the Next 10 Years]," Organizational Press Release, January 25, 2013.</ref> And in April 2014, the company said it has committed to “buy an additional $250 billion in products made, assembled, sourced or grown in the U.S. over 10 years in an effort to grow U.S. manufacturing and encourage the creation of U.S. jobs (began in 2013).”<ref>Walmart, "[http://cdn.corporate.walmart.com/db/e1/b551a9db42fd99ea24141f76065f/2014-global-responsibility-report.pdf Global Responsibility Report 2014]," Organizational document, April, 2014.</ref> In conjunction with this promise, Walmart has produced a series of ads, highlighting manufacturing jobs at its American suppliers.
 +
 
 +
===The Numbers Need to be Put into Context===
 +
Walmart’s initial commitment to purchase $5 billion a year (based on the $50 billion over 10 years figure) in US products sounded substantial, but an increase of $5 billion per year amounts to just 2 percent of what Walmart currently spends buying goods for U.S. stores<ref>Securities and Exchange Commission, “[http://www.sec.gov/Archives/edgar/data/104169/000010416914000019/wmtform10-kx13114.htm Walmart Stores 2014 10-K Filing],” Filed March 21, 2014 </ref>. If Walmart spends $250 billion on U.S. products over the next ten years, that only represents about 8.7% of the company’s estimated total costs at Walmart U.S. and Sam’s Club over that time. In contrast,  Walmart is the country’s top importer of ocean container transport goods. <ref>Marsha Salisbury, “[http://www.joc.com/international-trade-news/trade-data/united-states-trade-data/top-100-importers-2013.html Top 100 US Importers in 2013],” ''Journal of Commerce'', May 23, 2014.</ref>
 +
 
 +
Walmart does not appear to be on track to take credit for one million new American manufacturing jobs either. At the end of the first year of Walmart’s program, the company’s suppliers had only created “more than 2,000 U.S. jobs,”  0.2% of the ten-year goal.<ref>Walmart, "[http://cdn.corporate.walmart.com/db/e1/b551a9db42fd99ea24141f76065f/2014-global-responsibility-report.pdf Global Responsibility Report 2014]," organizational document, April, 2014.</ref>
 +
 
 +
===Increasing U.S. Sourcing is Something that Would Happen Anyway===
 +
Walmart will likely purchase over $250 billion more in US-sourced goods in the next decade simply due to its growth as a retailer – without making substantial changes to its sourcing practices.  Combined sales at Walmart US and Sam's Club have grown at just below 2.9% over the past three years,<ref>Securities and Exchange Commission, "[http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000104169&type=10-k&dateb=&owner=exclude&count=40 10-K Reports, Walmart Stores, Inc]," 2012-2014.</ref> and the company has said that two-thirds of its purchasing currently goes to American goods.<ref>Walmart Stores, "[http://news.walmart.com/news-archive/2013/01/15/walmart-to-boost-sourcing-of-us-products-by-50-billion-over-the-next-10-years Walmart to Boost Sourcing of US Products by $50 billion over the next 10 years,]" Organizational Press Release, January 15, 2013.</ref>  If both of those factors as well as the company's gross margin remain the same over the next decade, Walmart would be expected to spend approximately $262 billion more on American goods anyway, so this new "commitment" should actually be considered a baseline on top of which any additional domestic sourcing should be added. 
 +
 
 +
[[Image:ChartWMTManufacturing.jpg|center]]
 +
 
 +
In fact, the Boston Consulting Group—the same firm Walmart hired to bolster its manufacturing job creation claims—reported in September 2013 that “More than half of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the U.S. from China or are actively considering it.”<ref>Boston Consulting Group, "[http://www.bcg.com/media/pressreleasedetails.aspx?id=tcm:12-144944 Majority of Large Manufacturers Are Now Planning or Considering ‘Reshoring’ from China to the U.S.]," Organizational Boston Consulting Group, September 24, 2013.</ref>
 +
 
 +
Publicly available research from the Boston Consulting Group makes it clear that Walmart’s additional investment in American manufacturing is not driven by patriotism alone. A 2011 report from BCG further explains: 
 +
 
 +
"China’s overwhelming manufacturing cost advantage over the U.S. is shrinking fast. Within five years, a Boston Consulting Group analysis concludes, rising Chinese wages, higher U.S. productivity, a weaker dollar, and other factors will virtually close the cost gap between the U.S. and China for many goods consumed in North America."<ref>Harold L. Sirkin, Michael Zinser, Douglas Hohner, "[http://www.bcg.com/documents/file84471.pdf Made in America, Again: Why Manufacturing Will Return to the U.S.]," Boston Consulting Group,  August, 2011.</ref>
 +
 
 +
===How “Beautiful” is Work at a Walmart Supplier?===
 +
In its “Work is a Beautiful Thing” ad campaign, Walmart seizes upon the popular notion that American manufacturing jobs are well-paid jobs with good benefits, but Walmart supports the onshoring of these jobs at least partly as a cost saving mechanism in response to rising wages in China.<ref>Walmart Stores, Inc., "[http://cdn.corporate.walmart.com/4c/0f/5be4f45047d2a0b20795089987e2/us-manufacturing-faq.pdfWalmart U.S. Manufacturing FAQ]," organizational document, accessed June 25, 2014.</ref>
 +
 
 +
One of the first factories touted by Walmart in March 2013 was 1888 Mills in Griffin, GA. The company makes towels for Walmart. The Los Angeles Times reported that 1888 Mills was adding a mere 35 jobs as part of Walmart’s initiative and that 90% of its production would remain overseas.<ref>Alana Semuels, "[http://articles.latimes.com/2013/mar/03/business/la-fi-onshoring-walmart-20130303 Factory Growth is No Job Machine]," "Los Angeles Times", March 3, 2013.</ref>
 +
 
 +
==Political Influence==
 +
 
 +
===Walmart Uses Political Muscle to Push Trade Policy that Supports Offshoring===
 +
 
 +
Walmart spent $7.3 million on lobbying in 2013 alone. While this money was paid to influence a range of legislation, from lobbying against background checks for gun buyers to promoting corporate tax cuts, trade policy was among the issues Walmart lobbied on most aggressively.<ref>Center for Responsive Politics, "[http://www.opensecrets.org/lobby/clientsum.php?id=D000000367&year=2013 Walmart Stores: Client Profile Summary, 2013],"  OpenSecrets.org,  accessed June 24, 2014. </ref>
 +
 
 +
In fact, Walmart has lobbied to make it easier to push American jobs out of the country for years, playing a key role in in lobbying for Fast Track trade authority and NAFTA in the early 1990s,<ref name="AmyTraub"/> as well as the World Trade Organization General Agreement on Trade in Services (which would allow them to establish stores in other WTO countries with little regard for local zoning laws),<ref>Mary Bottari, "[http://www.citizen.org/trade/article_redirect.cfm?ID=14702 Big Box Backlash]," Public Citizen, 2005. </ref> China Free Trade, the Trans Pacific Partnership and other trade agreements. As one of the 600 industry advisers in the U.S. Trade Representatives Trade Advisory Committee System in 2014, a Walmart lobbyist has access to secret trade negotiating documents, including those for the Trans Pacific Partnership and the Transatlantic Trade and Investment Partnership.
 +
Ms. Angela J. Marshall Hofmann from Walmart's International Corporate Affairs division is the Vice-Chair of the USTR advisory group called ITAC-5 (distribution services). <ref>International Trade Administration website, [http://www.trade.gov/itac/committees/itac05.asp ITAC-5], accessed August 12, 2014.</ref>
 +
 
 +
===Allegations of Illegal PAC Scheme===
 +
 
 +
In September 2014, the watchdog nonprofits Common Cause and Public Citizen and the workers' rights group OUR Walmart filed a complaint with the Federal Election Commission alleging that "Wal-Mart is running an illegal scheme to prod employees into contributing to its political action committee, circumventing a federal law that bars companies from putting corporate funds into political campaigns," according to the groups.<ref name="pac scheme">Public Citizen, Common Cause, and OUR Walmart, "[http://www.citizen.org/pressroom/pressroomredirect.cfm?ID=4290 Wal-Mart Running Illegal PAC Scheme, Watchdog Groups and Employees Charge in FEC Complaint]," organizational press release, September 22, 2014. Accessed September 23, 2014.</ref> The complaint claims that since 2004, the company has asked management employees to give money to its PAC by promising to pay 200% of employee PAC contributions into its Wal-Mart Associates in Critical Need Fund, a 501(c)(3) charitable organization that offers financial assistance to Walmart employees in certain circumstances. According to the complaint, the solicitation employees received in 2004 read, "We're going to be relentless in encouraging participation until 100% of our management associates are on board."<ref name="fec complaint">Public Citizen, Common Cause, and OUR Walmart, [http://www.citizen.org/documents/fec-walmart-complaint.pdf Complaint Against Wal-Mart Stores, Inc.], letter to FEC, September 22, 2014. Accessed September 23, 2014.</ref> FEC regulations prohibit a corporation for paying a PAC contributor "for his or her contribution through a bonus, expense account, or other form of direct or indirect contribution."<ref name="fec complaint"/> The complaint alleges that Walmart's donation-doubling is an evasion of this law.
 +
 
 +
:“Federal law is clear – companies cannot fund their PACs with money from corporate coffers,” said Craig Holman, government affairs lobbyist for Public Citizen. “Wal-Mart is attempting to evade this law by providing a 2-to-1 charitable match from corporate coffers for any campaign contribution to its PAC from company managers. That flouts the law by using substantial corporate money to reward campaign contributors.”<ref name="pac scheme"/>
 +
 
 +
According to the complaint, employees contributed $5.3 million and Walmart itself contributed $3.6 million to the Wal-Mart Associates in Critical Need Fund in 2012.<ref name="fec complaint"/>
 +
 
 +
===Walmart PAC Spends $17 Million on Federal Elections===
 +
 
 +
From the 2000 election cycle through the 2012 cycle, the Walmart Political Action Committee and the company’s majority shareholders, the Walton family, spent nearly $17 million in federal elections.<ref>Walmart 1%, "[http://walmart1percent.org/issues/distorting-our-democracy/ Distorting Our Democracy]," Walmart1Percent.org, accessed June 26, 2014. </ref>
 +
 
 +
[[Image:ChartWalmartPAC.jpg|center]]
 +
 
 +
More than $11.6 million—69% of their contributions—went to Republican candidates and committees.<ref>Analysis of data from "[http://www.opensecrets.org/ Center for Responsive Politics]," OpenSecrets.org, accessed June 26, 2014. </ref>
 +
 
 +
Walmart uses corporate funds to contribute to candidates and ballot measure committees.<ref>Walmart Stores, "[http://corporate.walmart.com/microsites/global-responsibility-report-2013/pdf/Political%20and%20Public%20Policy--Global%20Responsibility%20Report%20%282013%29.pdf Political and Policy Oriented Engagement]," organizational document, accessed July 22, 2014. </ref>
 +
The company has been a major funder of the Republican State Leadership Committee (RSLC), the group behind the 2010 Republican takeover of state legislatures, giving over $1.5 million to the group since 2004.<ref>Walmart 1%, "[http://walmart1percent.org/2013/10/07/how-walmart-helped-lay-the-groundwork-for-the-government-shutdown/ How Walmart Helped Lay the Groundwork for the Government Shutdown]," Walmart1Percent.org, October 7, 2013. </ref>
 +
 
 +
At the state level, Walmart has spent almost all of its political contributions on Republican candidates and committees as well as on ballot initiatives that help it build new stores or limit government regulation.<ref>Follow the Money, "[http://www.followthemoney.org/database/topcontributor.phtml?u=2772&y=0 Noteworthy Contributor Summary: Wal-mart]," Followthemoney.org, accessed June 26, 2014. </ref> According to California Watch, Walmart has used the ballot initiative process to threaten costly special elections and circumvent environmental review in that state:
 +
 
 +
:"The Arkansas-based retailer has hired paid signature gatherers to circulate petitions to build new superstores or repeal local restrictions on big-box stores. Once 15 percent of eligible voters sign the petitions, state election law puts cash-strapped cities in a bind: City councils must either approve the Wal-Mart-drafted measure without changes or put it to a special election.
 +
As local officials grapple with whether to spend tens of thousands or even millions of taxpayer dollars on such an election, Wal-Mart urges cities to approve the petition outright rather than send it to voters."<ref>Will Evans, "[http://californiawatch.org/money-and-politics/wal-mart-ramps-ballot-threats-speed-new-stores-13678 Walmart Ramps up Ballot Threats to Speed New Stores]," California Watch Blog, November 21, 2011. </ref>
 +
 
 +
===Ties to the American Legislative Exchange Council===
 +
 
 +
In August 2011, Walmart Stores and the [[Walton Family Foundation]] were listed as chairman-level sponsors of the ALEC’s annual meeting.<ref>Zaid Jilani, "[http://thinkprogress.org/politics/2011/08/05/288823/alec-exposed-corporations-funding/ EXPOSED: The Corporations Funding The Annual Meeting Of The Powerful Right-Wing Front Group ALEC]," Think Progress, August 5, 2011 </ref> A chairman sponsorship cost $50,000 in 2010. From 2011 to 2012, Walmart’s then-VP of Public Affairs, Maggie Sans, served as the secretary of ALEC’s ("[[ALEC Boards and Task Forces|Private Enterprise]]")private enterprise board.<ref>Making Change at Walmart, "[http://makingchangeatwalmart.org/2012/02/29/the-walmart-1-percent-among-leading-supporters-of-right-wing-alec-2/ Walmart 1% Among Leading Supporters of Right-wing ALEC]," Walmart Watch Blog, February 29, 2012. </ref>  Walmart executive Janet Scott was the co-chair of ALEC’s Criminal Justice Task Force in 2005, when the task force approved template language for “Stand Your Ground” laws.<ref>Walmart 1%, "[http://walmart1percent.org/2012/03/27/whats-the-walmart-connection-to-the-shooting-of-trayvon-martin/ What's the Walmart Connection to the Shooting of Trayvon Martin]," Walmart1Percent.org, March 27, 2012. </ref> Walmart is also the nation's largest seller of guns and ammunition, and gun sales for the company have been rising<ref>Walmart 1%, "[http://walmart1percent.org/2013/01/07/while-walmart-gun-sales-rise/ While Walmart Gun Sales Rise]," Walmart1Percent.org, January 7, 2013. </ref>. 
 +
 
 +
In May 2012, Walmart withdrew from the organization.<ref>Associated Press, "[http://www.politico.com/news/stories/0512/76915.html Walmart Withdraws from Conservative Group ALEC]," Politico.com, May 31, 2012. </ref> The Walton Family Foundation has yet to publicly sever ties with ALEC, however.
 +
Since at least 2000, ALEC has backed a number of retail-related bills, including:
 +
*A bill that establishes "[https://www.alecexposed.org/w/images/1/10/7B10-Unused_Property_Market_Act_Exposed.pdf additional regulations]" on swap meets and flea markets, making it harder for those small sellers to compete with retailers like Walmart;
 +
*A bill that would make it a "[https://www.alecexposed.org/w/images/a/a5/7B7-Theft_From_Three_Separate_Mercantile_Establishments_Act_Exposed.pdf felony]" to steal from three separate retailers, no matter the value of the stolen merchandise;
 +
*A bill that creates harsher penalties for thieves who leave stores through the "[https://www.alecexposed.org/w/images/1/13/7B8-Theft_Using_Emergency_Exit_to_Avoid_Apprehension_or_Detection_Act_Exposed.pdf emergency exit]" door.
 +
 
 +
A list of [[ALEC Corporations|ALEC corporations, can be found here]]. A list of [[Corporations Which Have Cut Ties to ALEC|corporations which have cut ties with ALEC can be found here]].
 +
 
 +
{{about_ALEC}}
 +
===Walmart is a Lobbying Powerhouse===
 +
 
 +
In 2013, Walmart spent $7,260,000 on its lobbying efforts. With the help of 14 staff lobbyists and 14 outside lobbying firms, Walmart lobbied on dozens of issues at 13 federal agencies, as well as Congress and the White House.<ref>Center for Responsive Politics, "[http://www.opensecrets.org/lobby/clientsum.php?id=D000000367&year=2013 Walmart Stores: Summary]," OpenSecrets.org, accessed June 25, 2014.</ref> </br>
 +
 
 +
[[Image:ChartWalmartLobbying.jpg|center]]
 +
 
 +
A top priority for the company has long been taxes, with issues ranging from corporate tax reform to online sales taxes.<ref>Center for Responsive Politics, "[http://www.opensecrets.org/lobby/clientissues.php?id=D000000367&year=2013 Walmart Stores: Client Summary, Issues]," OpenSecrets.org, accessed June 25, 2014.</ref> The vast majority of Walmart’s 90 lobbyists are former Hill staffers. Additionally, five were former members of Congress.<ref>Center for Responsive Politics, "[http://www.opensecrets.org/lobby/clientlbs.php?id=D000000367&year=2013 Walmart Stores: Summary, Lobbyists Representing Walmart Stores, 2013]," OpenSecrets.org, accessed June 25, 2014.</ref> The lobbying firms included [[Patton Boggs]]; [[Prime Policy Group]]; [[Sandler, Travis & Rosenberg]]; [[Mehlman Vogel Castagnetti]]; and [[Podesta Group]].
 +
 
 +
Although the company claimed to be neutral on 2014 proposals to raise the federal minimum wage, their lobbying disclosures indicate that the company has lobbied extensively on the topic.<ref>Lydia DePillis, "[http://www.washingtonpost.com/blogs/wonkblog/wp/2014/02/21/wal-mart-says-its-neutral-on-a-minimum-wage-hike-lobbying-disclosures-suggest-otherwise/ Walmart Says Its Neutral on a Minimum Wage Hike Lobbying Disclosures Suggest Otherwise]," ''Washington Post'', February 21, 2014.</ref>
 +
 
 +
====Walmart Promises Greater Disclosure of State Lobbying====
 +
 
 +
In response to shareholder pressure, Walmart "said it will start disclosing directly to investors what it spends on lobbying on a state-by-state basis," ''Business Insider'' reported in May 2015. State rules vary widely, making it difficult to know how much was spent in many states. Walmart plans to offer a spending tally for each state on its website, along with a link to the related state filing document. However, Walmart stopped short of the level of transparency requested in a shareholder resolution filed by Zevin Asset Management, which also asked for disclosure of "indirect lobbying" through other organizations.<ref>Nathan Layne, "[http://www.businessinsider.com/r-exclusive-wal-mart-improves-lobbying-disclosure-after-shareholder-push-2015-5 Wal-Mart will start telling investors how much it spends on lobbying]," ''Business Insider'', May 13, 2015.</ref>
 +
 
 +
==Walmart Consumers Give Company Low Ratings==
 +
Walmart is the largest retailer and the largest seller of groceries in the United States<ref>Wal-Mart Stores, Inc., “[http://corporate.walmart.com/our-story/ Walmart: Our Story],” accessed April 28, 2014.</ref>. In 2013, Walmart had $16 billion in profits on revenues of $473 billion<ref>Wal-Mart Stores, Inc., “[http://news.walmart.com/news-archive/investors/2014/02/20/walmart-reports-q4-underlying1-eps-of-160-fiscal-2014-underlying1-eps-of-511 Walmart reports Q4 underlying1 EPS of $1.60, Fiscal 2014 underlying1 EPS of $5.11],” accessed February 20, 2014.</ref>, but the company has been struggling recently with declining same store sales<ref>Maggie McGrath, “[http://www.forbes.com/sites/maggiemcgrath/2014/02/20/wal-mart-lowers-outlook-as-profit-falls-and-same-store-sales-decline-could-a-family-dollar-acquisition-turn-things-around/ Walmart Lowers Outlook as Profits Fall and Same Store Sales Decline],” ''Forbes'', February 20, 2014.</ref> and negative consumer sentiment.  For the year ending January, 2014, Wal-Mart saw a 0.6 percent decline in same stores sales.
 +
 
 +
In May 2014, Wal-Mart reported falling sales for five consecutive quarters.<ref>Shelly Banjo and Michael Calia, “[http://online.wsj.com/news/articles/SB10001424052702304547704579561940524539538 Wal-Mart Takes Another Hit on Sales: Fifth Quarterly Decline in a Row Comes With Forecast of Further Weakness],” ''Wall Street Journal'', May 15, 2014.</ref> The company has admitted they could bring in an additional $3 billion a year by solving out-of-stock problems generally attributed to understaffing.<ref>Renee Dudley, “[http://www.businessweek.com/news/2014-03-28/wal-mart-says-refilling-empty-shelves-is-3-billion-opportunity Walmart Says Refilling Empty Shelves is $3 billion opportunity],” ''Business Week'', March 28, 2014. </ref> 
 +
Various measures of consumer sentiment indicate that Wal-Mart’s low-cost business model may be negatively impacting the company’s growth.<ref>Matt Carmichael, "[http://adage.com/article/adagestat/demographics-retail/233399/ The Demographics of Retail: Just Who Are the People in the Walmart (and Target, Kohl's and Kmart) Nations?]," ''Advertising Age'', March 19, 2012.</ref><ref>Anne D’Innocenzio, "[http://www.dispatch.com/content/stories/business/2012/11/18/target-versus-walmart-haves-and-have-nots.html Target versus Walmart: haves and have nots]," ''The Columbus Dispatch”, November 18, 2012.</ref>, <ref>Al Ries, "[http://adage.com/article/al-ries/jcp-walmart-fail-changing-spots/241456/ Why JCP, Walmart and Others Fail at Changing Their Spots]," ''Advertising Age”, May 14, 2013.</ref>
 +
 
 +
Since 2007, Wal-Mart has ranked last on the American Customer Satisfaction Index<ref>ACSI, "[http://www.theacsi.org/news-and-resources/press-releases/press-2014/press-release-february-2014 Press Release February 2014]," press release, February 19, 2014.</ref> for retailers.<ref>Jonathan Berr, "[http://www.cbsnews.com/news/how-wal-mart-disappoints-both-investors-and-customers/ How Wal-Mart disappoints both investors and customers]," ''CBS MoneyWatch'', February 20, 2014.</ref><ref>ACSI, "[http://www.theacsi.org/news-and-resources/press-releases/press-2014/press-release-february-2014 Press Release February 2014]," press release, February 19, 2014.</ref> Wal-Mart also came in last, and well below average, in a 2013 survey of 6,600 of grocery shoppers by Market Force Information. In the Market Force survey, Walmart did not score in the top five on any of the operational attributes or product quality categories about which customers were surveyed – including the speed of check-out, cleanliness, and the quality of meat and produce.
 +
 
 +
In a 2014 survey of 27,000 Consumer Reports subscribers, respondents ranked Wal-Mart last among 55 supermarkets.<ref>Neeti Upadhye, "[http://www.usatoday.com/story/news/nation-now/2014/03/27/grocery-stores-consumer-reports-rankings/6967537/ Wegmans tops supermarket survey; Wal-Mart ranks last]," ''USA Today”, March 27, 2014.</ref> In the survey, respondents said that prices were as good or better at seven highly ranked supermarkets.<ref>Jonathan Walsh, "[http://www.newsnet5.com/money/consumer/consumer-specialist/walmart-is-the-worst-grocer-according-to-consumer-reports Walmart is the worst grocer according to Consumer Reports]," ''Newsnet 5'', March 26, 2014.</ref>
 +
 
 +
A recent poll by Lake Research Partners found that among Walmart’s most loyal customers, those who shop there weekly, 9% say they have been shopping there less. Among these shoppers, "25% cite poor treatment of workers as a reason why they have been shopping there less."<ref>Celinda Lake and Joshua Ulibarri, “[http://www.lakeresearch.com/images/Recent.Polling.On.Walmart.pdf Recent Polling on Walmart].” Lake Research Partners,  June 5, 2014. </ref> Amplicate, which collates and analyzes online public opinion, has called Walmart the “least loved department store on social.”<ref>Amplicate, "[http://www.marketwired.com/press-release/Wal-Mart-Is-the-Least-Loved-Department-Store-on-Social-Media-1423393.htm Walmart Is the Least Loved Department Store on Social Media]," ''Market Wired'', April 6, 2011.</ref>
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 +
The New York Times reported on an internal company memo that indicated customers were losing trust in the quality of Walmart’s produce. The Times cited analysts who said the company “has cut so many employees that it no longer has enough workers to stock its shelves properly.<ref>Stephanie Clifford, "[http://www.nytimes.com/2013/04/04/business/walmart-strains-to-keep-grocery-aisles-stocked.html?pagewanted=all&_r=2& Walmart Strains to Keep Aisles Stocked Fresh]," ''The New York Times'', April 3, 2013.</ref><ref>Walter Loeb, "[http://www.forbes.com/sites/walterloeb/2013/07/17/why-are-walmart-stores-such-a-mess/ Why Are Walmart Stores Such A Mess?]," ''Forbes'', July 17, 2013.</ref><ref>Brad Tuttle, "[http://business.time.com/2013/03/27/hey-walmart-its-hard-to-make-sales-when-store-shelves-are-empty/ Hey Walmart, It’s Hard to Make Sales When Store Shelves Are Empty]," ''Time'', March 27, 2013.</ref>
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 +
In her 2012 investigative book, ''The American Way of Eating'' journalist Tracie McMillan concluded that Walmart’s management systems “completely broke down when it came to produce” contributing to problems with spoilage and lost sales.<ref>Lynne Rossetto Kasper, "[http://www.splendidtable.org/story/one-reporters-lesson-from-working-at-walmart-love-your-produce-manager One reporter's lesson from working at Walmart: Love your produce manager]," ''The Splendid Table'', N/D.</ref>
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 +
==Walmart One of Largest Greenhouse Gas Polluters==
 +
 
 +
Walmart is one of the "biggest and fastest growing" climate polluters in the nation, say experts. Since 2005, the year the company launched its “sustainability” campaign, Walmart’s self-reported greenhouse gas emissions have grown 14 percent.<ref>Stacy Mitchell, "[http://www.ilsr.org/wp-content/uploads/2013/10/ILSR-_Report_WalmartClimateChange.pdf Walmart’s Assault on the Climate]," Institute for Local Self Reliance, November 2013.</ref> Walmart's direct and indirect emissions now exceed those of many countries. This calculation does not include a number of sources of emissions, including those connected to ocean shipping of goods sold in Walmart stores.<ref name="Greenwash">Stacy Mitchell, "[http://www.ilsr.org/new-report-walmarts-greenwash/ Walmart's Greenwash]," Institute for Local Self Reliance, March 7, 2012.</ref> </br>
 +
*Compared to other large U.S. corporations, Walmart has been slow to shift to renewable power.  It currently gets 4% of the electricity for its stores from wind or solar. In contrast, Kohl’s and Staples get 100% of their electricity from renewable sources, while Starbucks get 70% and McDonald’s gets 30%. Walmart’s use of renewable power decreased between 2012 and 2013.<ref name="Greenwash"/>
 +
*In 2007, the company set a goal of becoming packaging neutral by 2025.<ref>Melanie Colburn, "[http://www.triplepundit.com/2013/04/walmart-2013-global-responsibility-report-released/ Walmart: 2013 Global Responsibility Report Released]," Triple Pundit, April 24, 2013. </ref> After reducing packaging by 5%, the company declared the goal “not met” and ended the program in 2013.<ref>Walmart Stores, Inc, "[http://corporate.walmart.com/microsites/global-responsibility-report-2013/pdf/Walmart_GRR.pdf Walmart 2013 Global Responsibility Report]," Walmart Stores Inc,  April 24, 2013.</ref>
 +
 
 +
===Environmental Impact of Walmart Business Model===
 +
 
 +
Walmart’s business model carries a heavy environmental impact.
 +
*Big-box problems: Each one of Walmart’s 3,200+ Supercenters, averaging 105,000 square feet,<ref>Walmart Stores, Inc., "[http://www.sec.gov/Archives/edgar/data/104169/000010416914000019/wmtform10-kx13114.htm Securities and Exchange Commission Form 10k], Walmart Stores.  Fiscal Year Ending January 31, 2014. </ref> are estimated by the Sierra Club to use as much energy each day as nearly 1,100 homes.<ref>The Sierra Club, "[http://vault.sierraclub.org/pressroom/media/2011/2011-06-walmart.pdf What is Walmart's True Environmental Footprint?]," June 2011. </ref>
 +
*Sprawl and land consumption: Walmart is known for building large stores, along with massive parking lots, on the fringes of communities, in areas ill-served by public transit. Its selection of construction locations for new stores has been criticized for encouraging more car travel, sprawl, and irresponsible land use.<ref>Kaid Benfield, "[http://www.theatlanticcities.com/politics/2012/08/failure-walmarts-sustainabiility-measures/2805/ The Failure of Walmart's Sustainability Measures]," CityLab from ''The Atlantic'',  August 2, 2012.</ref><ref name="Greenwash"/>
 +
*Selling low-quality goods: Walmart’s focus on cutting costs has led suppliers to produce cheaper goods of lesser quality.<ref name="Greenwash"/> These goods wear out or break faster – requiring frequent replacements and creating more waste.<ref name="Greenwash"/> This creates a cycle that helps Walmart’s short-term sales but creates significant waste and environment impact in the long-term.<ref> Stacy Mitchell "[http://grist.org/business-technology/2011-11-11-is-your-stuff-falling-apart-thank-walmart/  Is Your Stuff Falling Apart?  Thank Walmart.]" Grist November 11, 2011 </ref> </br>
 +
*Supply chain: Walmart is the U.S.’s largest importer of containerized ocean cargo. While ocean shipping is a major source of greenhouse gas emissions, Walmart does not include the environmental impact of ocean shipping in its greenhouse gas emissions calculations. <ref> Stacy Mitchell "[http://www.ilsr.org/wp-content/uploads/2013/10/ILSR-_Report_WalmartClimateChange.pdf Walmart's Assault on the Climate: The Truth Behind One of the Biggest Climate Polluters and Slickest Greenwashers in America]" Institute for Local Self Reliance.  November, 2013 </ref>    </br>
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 +
See also the 2015 report, [[#Report:_Suppliers_Violate_Labor_and_Environmental_Standards_While_Walmart_Neglects_Enforcement_.282015.29|Walmart at the Crossroads: The Environmental and Labor Impact of its Supply Chain]].
 +
 
 +
===Political Spending Favors Environmental Opponents===
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 +
Walmart and the Walton family, the majority owner of the company, shows that Walmart and the Waltons are major contributors to electoral campaigns of politicians who obstruct action on the environment.  In 2012, Walmart gave the "bulk of its money (over $3.6 million in the 2012 cycle) to lawmakers who regularly vote against the environment." <ref> Stacy Mitchell and Jesse Bacon "[http://www.ilsr.org/truth-walmarts-green-claims/ The Truth Behind Walmart's Green Claims]" Institute for Local Self Reliance, March 31, 2014. </ref>
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 +
Between 2005 and 2012, Walmart and the Waltons gave $2.1 million, more than half of their total Congressional campaign donations, to members of Congress with lifetime scores of 30 or less on the League of Conservation Voters scorecard. In addition, 69% of contributions from the Walmart PAC and 88% from the Walton family in 2011 and 2012 went to lawmakers who voted in favor of the Keystone XL Tar Sands Pipeline in 2012.<ref> Making Change at Walmart "[http://makingchangeatwalmart.org/factsheet/environment/ Walmart and the Environment Fact Sheet]" Accessed June 24, 2014 </ref>
 +
 
 +
==Veterans Offered Low Pay Jobs While Walmart Receives Subsidies==
 +
In May 2013, Walmart announced an initiative to “offer a job to any honorably discharged veteran within his or her first 12 months off active duty.”<ref>Walmart Stores, “[http://corporate.walmart.com/global-responsibility/veterans-military-families/careers-recruitment Veterans and Military Families Careers and Recruitment],” accessed July 22, 2014. </ref>    The company clarified with the New York Times that they could not guarantee that these jobs would be full-time.<ref> James Dao, “[http://www.nytimes.com/2013/01/15/us/wal-mart-to-announce-extensive-plan-to-hire-veterans.html?_r=1& Walmart Plans to Hire Any Veteran Who Wants a Job],” ''New York Times'', January 14, 2013. </ref> The company estimated that they would hire more than 100,000 veterans during the next five years,”<ref>Walmart Stores, “[http://corporate.walmart.com/global-responsibility/veterans-military-families/careers-recruitment Veterans and Military Families Careers and Recruitment],” accessed July 22, 2014. </ref> equivalent to 4 percent of the positions the company will need to fill in this timeframe.<ref name="Walmart’s Veterans’ Program">Company will hire approximately 500,000 people/year according to Juliette Kayyem, “[http://www.bostonglobe.com/opinion/2013/01/17/walmart-veterans-program-temporary-relief/JwldEA4QUpva9uK9S3oOMJ/story.html Walmart’s Veterans’ Program is Temporary Relief],” ''Boston Globe'', January 17, 2013.  (The 4% figure is derived from 500,000 x 5 years divided by the promised 100,000 Veterans.) </ref>
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 +
Under the federal Work Opportunity Tax Credit (WOTC), Walmart will receive up to $9,600 in tax credits per veteran employee.<ref>Chronicle News Services, “[http://www.sfgate.com/business/article/Walmart-pledges-to-hire-veterans-buy-U-S-4197238.php Walmart Pledges to Hire Veterans, buy U.S.],” SF Gate, January 15, 2013. </ref> <ref>US Department of Labor Employment and Training Administration, “[http://www.doleta.gov/business/incentives/opptax/benefits.cfm WOTC Tax Credit Amounts],” accessed July 22, 2014. </ref> Walmart has hired PeopleScout, a recruitment process provider, to handle the screening of veteran applications.<ref>Staffing Industry Analysts, “[http://www.staffingindustry.com/Research-Publications/Daily-News/PeopleScout-to-help-Walmart-hire-100-000-veterans-25910 PeopleScout to Help Walmart Hire 100,000 Veterans],” May 28, 2013. </ref> The website that PeopleScout created for applicants to Walmart includes a mandatory 13-question section labeled WOTC Questionnaire. This questionnaire determines if Walmart will receive a tax credit for hiring the applicant and the potential value of the credit. Walmart is also a member of the WOTC Coalition, a national organization that lobbies for extension of the WOTC.<ref>WOTC Coalition, “[http://www.wotccoalition.com/sponsor.asp?id=269826&page=2&shopperid=Coalition Info, Our Founding Members],” accessed July 24, 2014.  </ref>
 +
 
 +
===Concern over Job Quality for Veterans===
 +
 
 +
The Boston Globe reported after the original veterans hiring announcement in January that “Walmart’s plan will help veterans meet their immediate need for a meager paycheck, but it won’t give them what they most desire over the long term: sustained support and training, now and in the future, that connect skills learned in the military with economic opportunities. Indeed, veterans’ long-term careers would barely be advanced if every retailer took up Walmart’s cause.”<ref name="Walmart’s Veterans’ Program"/>
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 +
In an op-ed in Salon, disabled veteran and former Walmart associate Wally Lynn wrote about his experience, “Veterans from every American generation have put their lives on the line for our country, and it’s an insult that our country’s largest private employer pays us back with poverty jobs and erratic schedules that make it impossible to raise our families.”<ref>Wally Lynn, “[http://www.salon.com/2014/07/03/walmarts_big_july_4th_lie_this_is_how_it_really_treats_veterans/ Walmart’s Big July 4th Like: This is How It Really Treats Veterans],” ''Salon'', July 3, 2014.</ref>
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 +
==Female Walmart Workers Face Low Pay, Pregnancy Discrimination and Erratic Scheduling==
 +
 
 +
The majority of Walmart associates (57%) are women.<ref> Walmart Stores "[http://corporate.walmart.com/global-responsibility/diversity-inclusion/our-people Our People]"  Accessed June 25, 2014. </ref> The company has been the target of a significant number of lawsuits alleging gender discrimination - particularly around pay, promotions and safety accommodations at its stores.<ref> Nina Martin "[http://www.propublica.org/article/the-impact-and-echoes-of-the-wal-mart-discrimination-case The Impact and Echoes of the Walmart Discrimination Case]" ProPublica September 27, 2013 </ref>
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===Walmart vs. Dukes, Gender Discrimination Lawsuit===
 +
Walmart spent 11 years as the defendant in the largest class action gender discrimination lawsuit in history, Dukes v. Walmart. The plaintiffs alleged Walmart discriminated against women in promotions, pay, and job assignments. <ref> BETTY DUKES, PATRICIA SURGESON, EDITH ARANA,
 +
DEBORAH GUNTER and CHRISTINE KWAPNOSKI, on behalf of themselves and all others similarly situated, Plaintiffs, v. WAL-MART STORES, INC., Defendant. "[http://www.walmartclass.com/staticdata/Fourth%20Amended%20complaint%20final%20with%20exhibits.pdf Plaintiff's Fourth Amended Complaint]" U.S. District Court, Northern District of California.</ref> While fighting the class action status of the suit, Walmart maintained that the company has a strong ban on discrimination.<ref> Lyle Denniston "[http://www.scotusblog.com/2011/03/argument-preview-wal-mart-and-workers-rights/ Argument preview: Wal-Mart and workers’ rights]" SCOTUS Blog. March 28, 2011. </ref>
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Ms. Dukes was a Walmart associate from Pittsburgh, California.  Her suit alleged that Walmart illegally discriminated against her by repeatedly denying her application for promotions and by retaliating against her when she continued to request these opportunities.<ref> BETTY DUKES, PATRICIA SURGESON, EDITH ARANA,
 +
DEBORAH GUNTER and CHRISTINE KWAPNOSKI, on behalf of themselves and all others similarly situated, Plaintiffs, v. WAL-MART STORES, INC., Defendant. "[http://www.walmartclass.com/staticdata/Fourth%20Amended%20complaint%20final%20with%20exhibits.pdf Plaintiff's Fourth Amended Complaint]" U.S. District Court, Northern District of California.</ref>   
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 +
The U.S. Supreme Court dismissed the lawsuit in 2011 for technical reasons; a decision was never issued on its merits. Subsequent suits with smaller classes have been filed in California, Texas, Tennessee, Florida, Wisconsin and other states.<ref> Walmart Class Website "[http://www.walmartclass.com Walmart Class]" Accessed June 26, 2014 </ref>
 +
 
 +
===Differences in Pay and Leadership Roles by Gender===
 +
Women make up the majority of Walmart associates <ref> Walmart Stores "[http://corporate.walmart.com/global-responsibility/diversity-inclusion/our-people Our People]"  Accessed June 25, 2014. </ref> and, as a result, are most directly impacted by the company’s low wages. In fact, 57% of Walmart’s workforce is made up of women. <ref> Walmart Stores "[http://corporate.walmart.com/global-responsibility/diversity-inclusion/our-people Our People]"  Accessed June 25, 2014. </ref>
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 +
Although Walmart does not disclose current figures on differences in pay for men vs. women, a 2003 study found that female Walmart employees at all levels earned less than their male counterparts.<ref> Richard Drogin, PhD "[http://www.walmartclass.com/staticdata/reports/r2.pdf Statistical Analysis of Gender Patterns in Wal-mart Workforce]" Drogin, Kakigi & Associates December, 2013. </ref>  Women at Walmart earned $5,200 less per year than men, on average. Women who worked in hourly positions earned $1,100 less than men in the same position.  Women in salaried positions earned $14,500 less than men in the same position.<ref> Richard Drogin, PhD "[http://www.walmartclass.com/staticdata/reports/r2.pdf Statistical Analysis of Gender Patterns in Wal-mart Workforce]" Drogin, Kakigi & Associates December, 2013. </ref>
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According to the most recent data available, in 2012, only 42% of Walmart officials and managers were women.<ref> Walmart Stores "[http://cdn.corporate.walmart.com/d5/34/df2a49394a7797f5399beeb67f9d/2012-workforce-diversity-report.pdf Walmart Workforce Diversity 2012]" 2012. </ref>  Women only hold 28% of the top positions at the company.<ref> Walmart Stores "[http://cdn.corporate.walmart.com/10/4b/76e4650945ab9e854854d1372a7e/2013-diversity-inclusion-report.pdf Walmart Diversity and Inclusion Report]" 2013. </ref>
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 +
===Walmart Changes Pregnancy Policy Due to Worker Pressure===
 +
Walmart announced in April 2014 that it would alter its policy around accommodating pregnant women who work at Walmart.  The change came after members of OUR Walmart who are worker-shareholders submitted a shareholder resolution to the company advising Walmart change its policy.  Walmart reworked its policy so that women with pregnancy-related complications could be considered “temporary disabled” and would be eligible for “reasonable accommodation.”<ref> Lydia Depillis "[http://www.washingtonpost.com/blogs/wonkblog/wp/2014/04/05/under-pressure-walmart-upgrades-its-policy-for-helping-pregnant-workers/ Under Pressure, Walmart Upgrades Its Policy for Helping Pregnant Workers]" Washington Post.  April 5, 2014. </ref>
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Walmart workers and their supporters from women’s rights organizations including the National Women’s Law Center, a Better Balance and the National Partnership for Women and Families had been pressuring the company, arguing that, prior to the change, Walmart’s pregnancy policy was in violation of the Americans with Disabilities Act.<ref>Making Change at Walmart, "[http://makingchangeatwalmart.org/2014/04/07/moms-take-on-walmart-and-win/ Moms Take on Walmart And Win]," Walmart Watch Blog. April 7, 2014.</ref> <ref>A Better Balance and National Women's Law Center, "[http://www.abetterbalance.org/web/images/stories/Documents/Walmart_legal_backgrounder_Final_2_clean.pdf Walmart’s Accommodation in Employment Policy and Pregnancy/Disability Discrimination: A Backgrounder]," accessed August 4, 2014.</ref>
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===Workers and Women's Rights Groups Push for Additional Improvements to Pregnancy Policy===
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[[Image:Respectthebumpleader.jpg|thumb|Tiffany Beroid, a leader of group "Respect the Bump"]]Walmart workers and women’s advocates say Walmart's changed policy is an improvement but needs additional upgrades.  Experts claim the wording isn't fully in line with the Pregnancy Fairness Act, and the wording of the policy could pose problems. Writing in the Huffington Post, law professor Deborah Widiss argues:
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 +
<blockquote>
 +
''…. the relatively narrow wording Walmart has chosen for its policy suggests the company might not grant such requests if made by women with "healthy" pregnancies. This would be unfortunate -- and also often illegal. Walmart should revise its new policy to make clear that it will provide medically recommended accommodations for all its pregnant employees.''<ref>Deborah Widiss, "[http://www.huffingtonpost.com/deborah-widiss/walmart-pregnancy-policy_b_5187554.html?utm_hp_ref=tw How Walmart's 'Support' for Pregnant Employees Falls Short]," ''Huffington Post'', April 21, 2014.</ref>
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</blockquote>
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 +
===Walmart and the Walton Family's History of Funding Candidates Who Vote Against the Best Interests of Women===
 +
The Walmart PAC and the Waltons spend millions of dollars each year on politics.  And both give disproportionately to candidates who vote to weaken women's rights.
 +
From 2005 to 2012, among candidates with scores on the American Association of University Women’s 2012 Congressional scorecard, the majority of the Walmart PAC and Waltons’ contributions went to those with scores of 25 and below out of 100.<ref> Making Change at Walmart "[http://makingchangeatwalmart.org/womens-issues/ Women's Issues]" ChangeWalmart.org Accessed June 27, 2014 </ref>
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In fact, over that time period Walmart and the Waltons gave over $1.5 million to candidates with scores of 0.  The scorecard factors in a range of issues including the re-authorization of the Violence against Women Act, the Paycheck Fairness Act, Planned Parenthood funding, and education.<ref> Making Change at Walmart "[http://makingchangeatwalmart.org/womens-issues/ Women's Issues]" ChangeWalmart.org Accessed June 27, 2014 </ref>
 +
 
 +
==Walmart Heirs Wield Outsize Influence on U.S. Politics and Economy==
 +
Walmart is majority-owned by the Walton Family,<ref>Clare O'Connor, "[http://www.forbes.com/sites/clareoconnor/2013/06/13/as-walton-family-solidifies-majority-wal-mart-workers-promise-dissent-for-fair-pay/ As Walton Family Solidifies Majority, Walmart Workers Promise Dissent for Fair Pay]," ''Forbes'', June 13, 2013. </ref> the wealthiest family in the United States with a fortune of $148 billion.<ref>Walmart 1%, "[http://walmart1percent.org/how-rich-are-the-waltons/ How Rich are the Waltons?]," Updated March 5, 2014. </ref>
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Walmart was founded by Sam Walton and his brother Bud. They opened their first store in 1962.<ref>Walmart Stores, "[http://corporate.walmart.com/our-story/history/history-timeline History Timeline]," Walmart.com, accessed July 25, 2014." </ref>  Walmart is currently run by the next generation of Waltons, the children of Sam and Helen Walton. S. Robson "Rob" Walton (Wealth:$33.3 billion)<ref>''Forbes'', "[http://www.forbes.com/profile/s-robson-walton/ S. Robson Walton]," accessed July 25, 2014. </ref> is Chairman of Walmart and has been on the company Board since 1978.<ref>Walmart Stores, "[http://corporate.walmart.com/our-story/leadership/board-of-directors/rob-walton/ Board of Directors: Rob Walton]," organizational webpage, accessed July 25, 2014.</ref> Rob's brother, Jim Walton (Wealth: $33.8 billion)<ref>''Forbes'', "[http://www.forbes.com/profile/jim-walton/ Jim Walton]," accessed July 25, 2014.</ref>) is also a member of the Board of Directors.<ref>Walmart Stores, "[http://corporate.walmart.com/our-story/leadership/board-of-directors/jim-walton/ Board of Directors: Jim Walton]," organizational webpage, accessed July 25, 2014. </ref>.  The final Walton family member on the Walmart Board member is Greg Penner.<ref>Walmart Stores, "[http://corporate.walmart.com/our-story/leadership/board-of-directors/gregory-penner/ Gregory Penner]," organizational webpage, accessed July 25, 2014.</ref> Mr. Penner is the son-in-law of Rob Walton and his married to Mr. Walton's daughter, Carrie Walton Penner.<ref>Walmart 1%, "[http://walmart1percent.org/family-tree/carrie-walton-penner/ Carrie Walton Penner Profile]," Walmart1Percent.org, accessed July 25, 2014. </ref>
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Alice Walton (Wealth: $33.5 billion)<ref>''Forbes'', "[http://www.forbes.com/profile/alice-walton/ Alice Walton]," accessed July 25, 2014. </ref> is not on the Walmart Board but is a major holder of Walmart shares.<ref>Walmart 1%, "[http://walmart1percent.org/family-tree/alice-walton/ Alice Walton Profile]," Walmart1Percent.org, accessed July 25, 2014. </ref>
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Christy Walton (Wealth: $35.4 billion)<ref>''Forbe'',s "[http://www.forbes.com/profile/christy-walton/ Christy Walton]," accessed July 25, 2014. </ref> is currently the richest woman in the world. She is the widow of John Walton who died in a private plane crash in 2005.<ref>Walmart 1%, "[http://walmart1percent.org/family-tree/christy-walton/ Christy-Walton Profile]," Walmart1Percent.org, accessed July 25, 2014. </ref>
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 +
===Second Generation of Walton "Philanthropists" Fail to Support Family Foundation ===
 +
The Walton Family runs the Walton Family Foundation (WFF).  The WFF has nearly $2 billion in assets and is one of just 56 private foundations in the United States that exceeds $1 billion.<ref>Foundation Center, "[http://foundationcenter.org/findfunders/topfunders/top100assets.html Top 100 U.S. Foundations by Asset Size]," Foundationcenter.org, Aacessed July 25, 2014. </ref>  However, the foundation's assets are less than 1.5% of the Walton's net worth.<ref>Walmart 1 Percent, "[http://walmart1percent.org/files/2014/06/PhonyPhilanthropy.pdf The Phony Philanthropy of the Walmart Heirs: How the Richest Family in America Uses Their Private Foundation to Mislead the Public and Increase Their Wealth],"  June 2014.</ref> 
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A 2014 report found that the Walton family gives surprisingly little to the family foundation.<ref>Walmart 1 Percent, "[http://walmart1percent.org/files/2014/06/PhonyPhilanthropy.pdf The Phony Philanthropy of the Walmart Heirs: How the Richest Family in America Uses Their Private Foundation to Mislead the Public and Increase Their Wealth]," June 2014. </ref> In fact, the report found that Rob Walton, chairman of Walmart’s board of directors, has not made a single contribution to the foundation, and neither has his sister, Alice Walton. Jim Walton made one personal contribution of $3 million to WFF, more than 15 years ago. In all, the total contributions of Rob, Jim, Alice, and Christy Walton, and their family holding company to the WFF amount to $58.49 million, or 0.04% of their net worth.
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 +
===Walton Family Foundation Pushing Charters, Vouchers, Privatization of Public Schools===
 +
The [[Walton Family Foundation]] is one of the key drivers behind a vision of public education reform that seeks to, in the words of the WFF, infuse competitive pressure into America’s K-12 education system."<ref>Walton Family Foundation, "[http://www.waltonfamilyfoundation.org/educationreform Walton Family Foundation: Education Reform]," accessed July 25, 2014. </ref> 
 +
 
 +
The WFF has given more than $1 billion to corporate-style education reform initiatives, including millions to the pro-voucher, pro-privatization Alliance for School Choice.<ref>Motoko Rich, "[http://www.nytimes.com/2014/04/26/us/a-walmart-fortune-spreading-charter-schools.html?_r=0 A Walmart Fortune, Spreading Charter Schools]," ''The New York Times'', April 25, 2014. </ref>
 +
 +
The foundation supports the legal assault on tenure in California.<ref>Peter Schrag, "[http://www.latimes.com/opinion/op-ed/la-oe-schrag-vergara-teacher-union-20140403-story.html Kill Tenure, Kill Schools]," ''The Los Angeles Times'', April 3, 2014.</ref> The Foundation called the judge’s decision in Vergara vs. California a “historic victory,” and claims that California’s tenure system keeps “grossly ineffective teachers in front of students year after year.”<ref>Walton Family Foundation, "[http://www.waltonfamilyfoundation.org/mediacenter/victory-for-students-in-vergara-v.-california Historic Victory for Students in Vergara v. California]," media center document, June 10, 2014. </ref>
 +
 +
In December 2013, the WFF announced that it would contribute $6 million to the Alliance for School Choice, with the aim of doubling the number of students attending private schools with publicly-funded vouchers.<ref>Lindsey Layton, "[http://www.washingtonpost.com/local/education/walton-foundation-pumps-cash-into-vouchers/2013/12/17/3578483c-6740-11e3-8b5b-a77187b716a3_story.html Walton foundation pumps cash into vouchers]," ''The Washington Post'', December 17, 2013. </ref>
 +
 
 +
In 2013, the WFF contributed almost $500,000 to fund the “community engagement” process that led to the closure of more than 50 Chicago public schools.<ref>Sarah Karp, "[http://www.catalyst-chicago.org/notebook/2013/01/30/20778/record-walton-foundation-funds-community-engagement For the Record: Walton Foundation funds community engagement],” ''Chicago Catalyst'', January 30, 2013.</ref> <ref>Chicago Teachers Union Blog, "[http://www.ctunet.com/blog/walton-family-school-reform-initiatives-in-chicago-reveals-true-education-agenda Walton family school ‘reform’ initiatives in Chicago reveals true education agenda,]" CTU Blog, April 17, 2013. </ref>
 +
 
 +
====Report on WFF's Influence on School Privatization Movement (2015)====
 +
 
 +
In 2015, In the Public Interest and the American Federation of Teachers released a report, "[http://cashinginonkids.com/brought-to-you-by-wal-mart-how-the-walton-family-foundations-ideological-pursuit-is-damaging-charter-schooling/ Brought to You by Walmart? How the Walton Family Foundation's Ideological Pursuit is Damaging Charter Schooling]," which according to its own description "explores the radical agenda of the Walton family and the foundation it controls, and how that agenda has taken the U.S. charter school movement away from education quality in favor of a strategy focused only on growth."
 +
 
 +
==Executives and Compensation==
 +
 
 +
Executives and Compensation<ref> Morningstar "[http://insiders.morningstar.com/trading/executive-compensation.action?t=WMT WMT Analysis  Accessed July 22, 2014]" </ref>
 +
Total fiscal year 2014 compensation:
 +
*Michael T. Duke, then-President and CEO - $5,643,677
 +
*C. Douglas McMillon, current President and CEO - $25,592,938
 +
*Charles M. Holley, Jr, Executive Vice President and CFO - $8,199,391
 +
*William S. Simon, Executive Vice President and CEO of Walmart US - $13,054,360
 +
*Neil M. Ashe, Executive Vice President and CEO of Global eCommerce - $13,178,743
 +
*Rosalind G. Brewer, Executive Vice President and CEO of Sam’s Club - $ 11,664,423
 +
 
 +
Walmart Directors and Compensation for Fiscal 2014<ref> Walmart Stores "[http://www.sec.gov/Archives/edgar/data/104169/000130817914000196/lwmt2014_def14a.htm Walmart Proxy 2014]" Securities and Exchange Commission. Filed April 23, 2014]" </ref>
 +
*Aida Alvarez $269,404
 +
*James Cash $345,925
 +
*Roger Corbett $304,846
 +
*Pamela Craig $116,677
 +
*Timothy Flynn $320,812
 +
*Marissa Mayer $263,607
 +
*Gregory Penner $278,745
 +
*Steven Reinemund $257,046
 +
*H. Lee Scott, Jr $244,660
 +
*Jim Walton $247,089
 +
*Christopher Williams $384,821
 +
*Linda Wolf $284,351
 +
''Note: Lee Scott and Christopher Williams stepped down from the Walmart board, effective June 2014.''
  
 
==Contact info==
 
==Contact info==
Wal-Mart Stores, Inc.<br>
+
WalMart Stores, Inc.<br>
 
Attn: Customer Service<br>
 
Attn: Customer Service<br>
 
702 S.W. 8th Street<br>
 
702 S.W. 8th Street<br>
 
Bentonville, AR 72716<br>
 
Bentonville, AR 72716<br>
 
Phone: 1-800-WALMART (1-800-925-6278) <br>
 
Phone: 1-800-WALMART (1-800-925-6278) <br>
Web: http://www.walmart.com <br>
+
Fax: 479-277-1830<br>
and: http://www.walmartfacts.com
+
Web: http://www.walmartstores.com (corporate) <br>
 +
Web: http://www.walmartfacts.com Wal-Mart's Advocacy site
 +
 
 +
==Articles and Resources==
 +
 
 +
===External Resources===
 +
 
 +
[http://foodchainworkers.org/wp-content/uploads/2015/06/Walmart-at-the-Crossroads-FINAL-06.04.15.pdf Walmart at the Crossroads: The Environmental and Labor Impact of Its Food Supply Chain], Food Chain Workers Alliance, June 2015.
 +
 
 +
Catherine Ruetschlin "[http://www.demos.org/publication/retails-hidden-potential-how-raising-wages-would-benefit-workers-industry-and-overall-ec Retail's Hidden Potential: How Raising Wages Would Benefit Workers, the Industry and the Overall Economy]" Demos November 19, 2012 </br>
 +
"[http://makingchangeatwalmart.org/ Making Change at Walmart]"</br>
 +
"[http://www.glassdoor.com/Salary/Walmart-Salaries-E715.htm Glassdoor page for Walmart Stores]" </br>
 +
"[http://www.payscale.com/research/US/Employer=Wal-Mart_Stores,_Inc/Hourly_Rate Payscale page for Walmart]" </br>
 +
 
 +
Robert E. Scott, "[http://www.epi.org/publication/webfeatures_snapshots_20070627/ Walmart's Reliance on Chinese Imports Costs U.S. Jobs]" Economic Policy Institute, June 27, 2007.
 +
 
 +
Harold L. Sirkin, Michael Zinser, Douglas Hohner,"[http://www.bcg.com/documents/file84471.pdf Made in America, Again: Why Manufacturing Will Return to the U.S.]" Boston Consulting Group.  August, 2011
 +
 
 +
Marsha Salisbury “[http://www.joc.com/international-trade-news/trade-data/united-states-trade-data/top-100-importers-2013.html Top 100 US Importers in 2013]” Journal of Commerce May 23, 2014
 +
 
 +
"[http://www.walmartclass.com/public_home.html Walmart Class Website]"
 +
 
 +
"[http://ChangeWalmart.org Making Change at Walmart]"
 +
 
 +
"[http://walmart1percent.org Walmart 1%: The People Behind the Walmart Empire]"
 +
 
 +
===External Articles===
 +
Alana Semuels, "[http://articles.latimes.com/2013/mar/03/business/la-fi-onshoring-walmart-20130303 Factory Growth is No Job Machine]" Los Angeles Times March 3, 2013
 +
 
 +
Amy Traub "[http://www.demos.org/publication/not-made-america-top-10-ways-walmart-destroys-us-manufacturing-jobs Not Made in America: Top 10 Ways Walmart Destroys U.S. Manufacturing Jobs]" Demos July 2, 2012
 +
 
 +
Susan Berfield "[http://www.businessweek.com/articles/2013-10-23/more-than-half-of-walmarts-hourly-workers-make-less-than-25-000 More Than Half of Walmart's Hourly Workers Make Less Than $25,000/Year]" Business Week  October 23, 2013 <br>
 +
 
 +
Avi Rabin-Havt "[http://www.salon.com/2014/06/25/walmart_flunks_its_fact_check_the_truth_behind_its_sarcastic_response_to_the_times/ Walmart Flunks Its Fact Check the Truth Behind Its Sarcastic Response to the Times]" Salon.com June 25, 2014
 +
 
 +
Steven Gandel "[http://fortune.com/2013/11/12/why-wal-mart-can-afford-to-give-its-workers-a-50-raise/ Why Wal-Mart Can Afford to Give Its Workers at 50% raise]" Fortune  November 12, 2013.
 +
 
 +
Nina Martin "[http://www.propublica.org/article/the-impact-and-echoes-of-the-wal-mart-discrimination-case The Impact and Echoes of the Walmart Discrimination Case]" ProPublica September 27, 2013
  
==External Links==
+
Karen McVeigh and Dominic Rushe "[http://www.theguardian.com/business/2014/jun/04/walmart-protest-strike-pay-conditions Walmart Moms Walk Off the Job in Protest at Pay and Conditions]" The Guardian, June 4, 2014.
===Undated===
 
* [http://reclaimdemocracy.org/walmart/ This useful index of articles on Wal-Mart] includes many critical commentaries, but also factual studies and reporting from a neutral or pro-Wal-Mart view.
 
*"[http://www.walmartwatch.com/index.cfm Wal-Mart Watch]." Activist web site founded with money from the Service Employees International Union, the biggest union in the United States.
 
  
===[[Wal-Mart Stores: Articles & Commentary 2003-2004|2003-2004]]===
+
===References===
 +
<references/>
  
===2005===
+
[[Category:Corporations]][[Category:United States]][[Category:Corporations Targeted by BEN Campaigns]]
*Lorrie Grant, "[http://www.usatoday.com/money/industries/retail/2005-01-12-walmart-usat_x.htm Wal-Mart CEO vows 'unfiltered truth']," ''USA Today'', January 13, 2005.
+
[[Category:Civil liberties (U.S.)]][[Category:Needs review]][[Category:ALEC Exposed]][[Category:ALEC Corporations]]
*Lorrie Grant, "[http://www.usatoday.com/money/industries/retail/2005-01-12-walmart-qanda_x.htm Wal-Mart CEO to counteract 'urban legend']," ''USA Today'', January 13, 2005.
 
*"[http://www.odwyerpr.com/members/0113walmart.htm Wal-Mart Draws Line in the Sand]," ''O'Dwyer's PR Daily'', January 13, 2005.
 
*"[http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1000752304 Wal-Mart Attacks Critics, Using Newspaper Ads]," ''Associated Press'', January 13, 2005.
 
* Barrie McKenna, "[http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050114/RWALMART14/TPBusiness/International Wal-Mart strikes back at detractors with new million-dollar PR push:] 'It's time to draw our own line in the sand,' retail giant's CEO says in ad," ''Globe and Mail'', January 14, 2005.
 
*Mike Buffington, "[http://reclaimdemocracy.org/walmart/newspaper_association_letter.php  Letter to Wal-Mart CEO Lee Scott]", January 15, 2005.
 
*Jim Elsener, "[http://www.thebusinessledger.com/Articles.asp?artId=779&isuID=39  Price of a Free Press Can Be Costly]", ''The Business Ledger'', April 4, 2005.
 
*John N. Frank and Hamilton Nolan, "[http://www.prweek.com/news/news_story_free.cfm?ID=236946&site=3 Wal-Mart media summit provokes unions]", ''PR Week'', April 4, 2005. (Sub req'd).
 
*"[http://washingtontimes.com/business/20050403-093739-7895r.htm Wal-Mart officials advised to confront growing criticism]", ''Washington Times'', April 4, 2005.
 
*John N. Frank, "[http://www.prweek.com/news/news_worldwire.cfm?ID=237116&site=3&setcookie=1 At its media summit, Wal-Mart stresses openness to journalists, benefits to community]", ''PR Week'', April 6, 2005. (sub. req'd.)
 
*James Bandler and Ann Zimmerman, "[http://online.wsj.com/article/0,,SB111291400324201359,00.html?mod=mm%5Fmedia%5Fmarketing%5Fhs%5Fleft A Wal-Mart Legend's Trail of Deceit: Mr. Coughlin Told Others Bogus Expenses Hid Plot Against Unions, Retailer Disputes His Claim]," ''Wall Street Journal'' (sub. req'd.), April 8, 2005.
 
*Christopher Leonard, "[http://www.csmonitor.com/2005/0408/p01s03-usgn.html A Wal-Mart charm offensive opens HQ to a rare peek inside]," ''Christian Science Monitor'', April 8, 2005.
 
*John N. Frank, "[http://www.prweek.com/news/news_story.cfm?ID=237191&site=3 Wal-Mart moves PR director to regional corporate affairs post]", ''PR Week'' (Sub. req'd.), April 10, 2005.
 
*"[http://www.odwyerpr.com/members/0411walmart_real.htm Wal-Mart Brings In Real Estate PR Firm in N.Y.]," ''O'Dwyer's PR Daily'' (sub. req'd.), April 11, 2005.
 
* Kelly Hearn, "[http://www.alternet.org/story/21724/ Wal-Mart's Wily Ways]," Alternet, April 13, 2005.
 
*John N. Frank, "[http://www.prweek.com/news/news_worldwire.cfm?ID=238873&site=3&setcookie=1 Wal-Mart director resigns after ad draws criticism]", ''PR Week'', June 10, 2005. (Sub req'd).
 
*Steven Greenhouse, [http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?ex=1122696000&en=4cd5686772a804b6&ei=5070&incamp=article_popular "How Costco Became the Anti-Wal-Mart,"] ''New York Times'', July 17, 2005: [[Costco]]: "The company is challenging the idea that discount retailers must pay workers poorly."
 
*John N. Frank, "[http://www.prweek.com/news/news_story.cfm?ID=239889&site=3&setcookie=1 Wal-Mart seeks to improve its image in NY]", ''PR Week'', July 25 2005.
 
*Lewis Lazare, "[http://www.suntimes.com/output/lazare/cst-fin-lew10.html Wal-Mart image shift too subtle]", ''Chicago Sun-Times'', August 10, 2005.
 
*Amy Schiller, "[http://www.alternet.org/wiretap/24069/ The Wal-Mart Thought Police: The 'everyday low prices' superchain refuses to carry books and music that dare criticize conservative values]", ''Alternet'', August 16, 2005.
 
*Anita French, "[http://www.nwaonline.net/articles/2005/09/14/business/01wmcritics.txt Wal-Mart Critics Continue Campaigns]," ''The Morning News'', September 14, 2005.
 
*Emily Kaiser, "[http://www.boston.com/news/nation/articles/2005/09/19/wal_mart_rides_good_pr_plans_secret_spin_strategy/ Wal-Mart rides good PR, plans secret spin strategy]," ''Reuters'', September 19, 2005.
 
*Hamilton Nolan, "[http://www.prweek.com/uk/news/article/519799/edelman-joins-walmart-list-pr-agencies/ Edelman joins Wal-Mart list of PR agencies]", ''PR Week'', September 29, 2005. (Sub req'd).
 
*Emily Kaiser, "[http://ca.today.reuters.com/news/newsArticle.aspx?type=entertainmentNews&storyID=2005-10-26T200112Z_01_MCC672003_RTRIDST_0_ENTERTAINMENT-RETAIL-WALMART-DVD-COL.XML&archived=False Dueling Wal-Mart documentaries coming to DVD]", October 26, 2005.
 
*Stephen Baker, "[http://blogs.businessweek.com/the_thread/blogspotting/archives/2005/10/edelman_shows_w.html Edelman shows Wal-Mart the power of blogs]", ''Blogspotting'', Businessweek, October 26, 2005.
 
*Amy Joyce and Ben White, "[http://www.washingtonpost.com/wp-dyn/content/article/2005/10/28/AR2005102802079.html Wal-Mart Pushes to Soften Its Image: Social, Environmental Initiatives Seen as Part of Larger Effort to Counter Critics]", ''Washington Post'', October 29, 2005; Page D01.
 
*Anita French, "[http://www.nwaonline.net/articles/2005/10/28/business/01wmpr.txt Wal-Mart Gears Up Its PR]", ''The Morning News'', October 28, 2005.
 
*[http://releases.usnewswire.com/GetRelease.asp?id=55933 "Trippi Multimedia Joins WakeUpWalMart.Com's Campaign to Raise Awareness About Wal-Mart's Bad Practices,"] US Newswire, October 31, 2005: "[[Trippi Multimedia]] has joined WakeUpWalMart.com in launching a national advertising and multimedia campaign about 'the movie and the memo Wal-Mart does not want you to see.'"
 
*Michael Barbaro, "[http://www.nytimes.com/2005/11/01/business/01walmart.html A New Weapon for Wal-Mart: A War Room]," ''New York Times'', November 1, 2005.
 
*Jonathan Birchall, "[http://msnbc.msn.com/id/9925188/ Wal-Mart unveils new weapon in battle with critics]", ''MSNBC'', November 4, 2005.
 
*Ann Zimmerman, "[http://online.wsj.com/article/SB113107036917888114.html?mod=home_whats_news_us Wal-Mart Sets Seminar to Assess Economic Impact]", ''Wall Street Journal'', November 4, 2005. (Sub req'd).
 
*Global Insight, "[http://www.globalinsight.com/publicDownload/genericContent/11-03-05_walmart.pdf The Economic Impact of Wal-Mart]", November 2, 2005.
 
*Global Insight, "[http://www.globalinsight.com/About/PressRelease/PressRelease2439.htm Global Insight Releases New Study on the Impact of Wal-Mart on the U.S. Economy]", Media Release, November 4, 2005.
 
*Global Insight, "[http://www.globalinsight.com/MultiClientStudy/MultiClientStudyDetail2438.htm Measuring the Economic Impact of Wal-Mart on the U.S. Economy]", November 2005. (This page is an overview of the Wal-Mart sponsored conference on the impact of the company).
 
*"[http://www.globalinsight.com/Highlight/HighlightDetail2436.htm Measuring the Economic Impact of Wal-Mart on the U.S. Economy]", November 2005. (This page lists the other papers presented at the Wal-Mart sponsored conference and links to most of them).
 
*Jonathan Tasini, "[http://www.alternet.org/walmart/28008/ The Wal-Mart
 
22]", ''TomPaine.com'', November 9, 2005.
 

Latest revision as of 23:12, 25 December 2019

ALECexposed-80px.png

Learn more about corporations VOTING to rewrite our laws.

Jim, Alice and Rob Walton (L-R)

Walmart is the world's largest retailer, according to Forbes,[1] with 10,994 stores around the world in 2014, including more than 4,800 stores in the U.S.,[2] though Walmart planned to close 154 U.S. and 115 global stores in 2016.[3] It is also the world's largest corporation in revenue[4] and was the largest importer of goods to the United States as of 2013, according to the Journal of Commerce,[5] contributing significantly to the U.S. national trade deficit.

Estimates of the average hourly wage for Walmart associates vary, but several independent sources put it under $9.00 per hour. An independent study in 2011 found that the average Walmart associate made just $8.81 per hour[6] and a July 2014 report found that Walmart cashiers averaged $8.48/hour.[7] An April 2014 study by Americans for Tax Fairness estimated that subsidies and tax breaks for Walmart and the Walton family that owns the operation cost U.S. taxpayers $7.8 billion per year, including approximately $6.2 billion in assistance to Walmart workers due to low wages and benefits.[8]

Walmart is one of the "biggest and fastest growing" climate polluters in the nation, say experts at the Institute for Local Self Reliance. Between 2005, the year the company launched its “sustainability” campaign, and 2013, Walmart’s self-reported greenhouse gas emissions grew 14 percent.[9]

According to the Journal of Commerce, Walmart was the largest importer of goods to the United States in 2013.[10] A report from the Economic Policy Institute estimated that Walmart's trade with China between 2001 and 2006 was responsible for the elimination of 200,000 U.S. jobs.[11]

Walmart spent $2.4 billion in advertising in 2014,[12] much of it specifically to trumpet its role as an employer,[13] its commitment to hire military veterans,[14] and its new US manufacturing initiative.[15]

Walmart is a publicly traded company, majority-owned by the Walton Family.[16] The Walton family is the wealthiest family in the United States with a fortune worth $148 billion in 2014.[17] They use their wealth to support a variety of right-wing causes, including the privatization of public schools. For more information about the Walton family, see below and read the Walton Family Foundation article.

Access Wal-Mart's corporate rap sheet compiled and written by Good Jobs First here.

Violation Tracker
Discover Which Corporations are the Biggest Violators of Environmental, Health and Safety Laws in the United States
Violation Tracker is the first national search engine on corporate misconduct covering environmental, health, and safety cases initiated by 13 federal regulatory agencies. Violation Tracker is produced by the Corporate Research Project of Good Jobs First. Click here to access Violation Tracker.


Contents

Walmart and the African-American Community

Walmart is the largest private employer of African-Americans in the United States. [18] More than 20% of Walmart’s 1.3 million US workers are African-American. [19] [20] A recent report by Americans for Tax Fairness found that, even with Walmart’s announced wage increases, many Walmart Associates will continue to earn so little that they qualify for food stamps and other taxpayer funded programs.[21] Nearly 40% of African-American part-time retail workers would like to work full-time if they could get the hours.[22] Roughly half of all Walmart Associates are part-time.

People of Color are Under-Represented in Walmart Management

Although people of color make up 39% of all Walmart Associates, only 22% of Walmart officers are people of color. [23] Similarly, Walmart’s Board of Directors has just two people of color on their 15 member board (13%).[24]

The Walton Family Disproportionately Funds Politicians Who Vote Against Civil Rights Protections

The Walmart PAC and Waltons’ contributions from 2005 to 2012 show that, among candidates with Leadership Conference on Civil and Human Rights scores, the Walmart PAC and Waltons favored candidates who failed to protect civil rights.[25] In fact, 85% of the Waltons’ contributions went to candidates with scores of 25 or below, out of 100.

Stunning Disparity Between the Wealth of the Walton Family and the Struggles of the African-American Community

The Walton family is the wealthiest family in America and is worth more than $149 billion.[26] The Economic Policy Institute found that the Waltons’ wealth is now equivalent to 79% of African-American families combined.[27]

Labor Issues

Walmart to Close 269 Stores; Job Losses Could Total 10,000 in U.S. and 6,000 Abroad

Walmart would close 154 stores in the U.S. and 115 additional stores globally, the corporation announced in a statement released January 15, 2016. That included 102 Walmart Express stores, a pilot program for smaller stores in urban locations. Doug McMillon, president and CEO of Wal-mart Stores, Inc., described the decision as "[a]ctively managing our portfolio of assets" to maintain "a healthy business."[28] According to The New York Times, competition from online retailers, "sluggish" consumer demand, and Walmart's "difficulties [...] in reaching more urban consumers" were major factors.[3]

Walmart, the largest private-sector employer in the U.S.,[3] estimated that 16,000 workers would be affected, 10,000 of them in the U.S., and stated,

"the hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity."[28]

The decision marked the first time Walmart would shrink its total store footprint in the U.S.[28]

"For Walmart, its workers are disposable," said Jess Levin, communications director at Making Change at Walmart, a group backed by the United Food and Commercial Workers International Union and a longtime critic of working conditions at the retailer.
"These latest store closings could very well be just the beginning," she said. "This sends a chilling message to the company’s hard-working employees that they could be next."[3]

A list of store closings can be found here.

Bloomberg Businessweek: Walmart Works with Defense Contractor, FBI Terrorism Task Force to Surveil Worker Organizing and Protests

Walmart had "hired an intelligence-gathering service from Lockheed Martin, contacted the FBI, staffed up its labor hotline, ranked stores by labor activity, and kept eyes on employees (and activists)" active in OUR Walmart, an employee group organizing for improved wages and job standards, Bloomberg Businessweek reported on November 24, 2015. The surveillance efforts were described in documents obtained through the discovery process as part a National Labor Relations Board hearing over OUR Walmart's accusations that the company had retaliated against employees involved in a 2013 protest.[29]

Walmart did not comment specifically on the NLRB documents, but in a statement to Bloomberg said, "We are firmly committed to the safety and security of our 2.2 million associates as well as the 260 million customers we serve each week [...] Unfortunately, there are occasions when outside groups attempt to deliberately disrupt our business and on behalf of our customers and associates we take action accordingly."[29]

Walmart's global security division, run by former FBI officer Kenneth Senser,[30] includes an Analytical Research Center headed by Steve Dozier, former director of the Arkansas State Police.[29] In testimony to the NLRB, Walmart labor relations executive Karen Casey said,

"When we received word of potential strikes and disruptive activity on Black Friday 2012, that’s when we started to ask the ARC to work with us [...] ARC had contracted with Lockheed leading up to Black Friday to help source open social media sites."[29]

Neither Walmart nor Lockheed would comment to Bloomberg about their contract at that time.[29] However, Bloomberg's review of the NLRB documents found email sent to Walmart by a Lockheed Martin analyst monitoring activists' social media accounts, email showing that Lockheed Martin helped track a cross-country bus caravan of activists, and documents indicating that when Walmart's security team "heard that members of the Occupy movement might join the protests at corporate headquarters, they began working with the FBI Joint Terrorism Task Forces."[29]

[Angela] Williamson, the former Walmart associate who became an OUR Walmart organizer, knew she was being monitored in Bentonville. “I sent a couple of fake tweets about where we would be or what we were doing. I don’t know if it worked,” she says. “I wonder how people feel about Walmart wasting money by hiring Lockheed Martin to read my tweets. I wouldn’t be happy about that if I was a shareholder.”[29]

See the documents and read more about Walmart's monitoring of labor organizing in "How Walmart Keeps an Eye on Its Massive Workforce," Bloomberg Businessweek.

Report: Suppliers Violate Labor and Environmental Standards While Walmart Neglects Enforcement (2015)

A 2015 report by the Food Chain Workers Alliance, which analyzed key suppliers in Walmart's food supply chain, "found numerous cases in which suppliers are failing to uphold Walmart’s compliance standards and in which Walmart is neglecting to enforce its own standards and goals... [including] illegal dumping of hazardous waste, improper protection of workers from occupational health and safety dangers, violations of workers’ freedom of association, and, in some cases, slave and forced labor, both in the United States and abroad."[31] The report also noted numerous cases in which Walmart had publicized major plans to improve labor conditions and lessen its environmental impact, but quietly discontinued the programs or saw them fall dramatically short of their goals.

Suppliers and contractors examined in the report included: Monterey Mushrooms, Inc., Giorgio Foods, Inc. (mushrooms); Naturipe Farms, LLC, SunnyRidge Farms/Dole Berry Company, Gerawan Farming, Chiquita, Del Monte, Dole Food (fruit); Taylor Farms (packaged salads); Flowers Foods (bread and baked goods); Cal-Maine Foods, Rose Acre Farms, Moark, LLC (eggs); Nestlé S.A., Dean Foods, Schreiber Foods, Land O' Lakes (dairy); Tyson Foods, Inc., Pilgrim’s Pride/JBS S.A., Perdue Farms, Inc. (chicken); Schneider Logistics, and United Natural Foods, Inc. (warehouse and food distribution).[31]

Some key findings in the report:[32][31]

  • Seafood supplier Charoen Pokphand Foods has been tied to slave labor in southeast Asia
  • Federal suits over alleged discrimination have been filed against egg producers Rose Acre Farms and Cal-Maine Foods
  • Walmart itself does not pay a living wage to its own employees, and has been repeatedly accused of gender and racial bias in hiring and promotions in Walmart stores
  • The company is known for "greenwashing," including a 2010 promise to cut greenhouse gas emissions by 20 million metric tons by 2015, only 38 percent of which had been achieved by mid-2015; and a much-hyped 2010 "Heritage Agriculture" program to promote local foods, which had disappeared from Walmart's website by 2015.

Read the full report here: "Walmart at the Crossroads: The Environmental and Labor Impact of its Supply Chain."

Judge's Ruling for Truckers in Wage Suit Could Cost Walmart $100 Million in Back Pay (2015)

U.S. District Court Judge Susan Illston issued a summary judgement in May 2015 in favor of a group of truckers who had sued Walmart over claims that they had not been paid for all the time they worked. The ruling could cost Walmart between $100-150 million in back pay, according to the Fresno Bee.[33] The class action suit, which included 720 current and former drivers for Walmart, "contend[ed] that Wal-Mart’s payment policies, as articulated in Wal-Mart's Driver Pay Manuals, violate California wage law by failing to pay drivers at least minimum wage for all of the time they work, including time spent on pre-trip and post-trip inspections, rest breaks, wait time, fueling the tractor, washing the tractor and trailer, weighing the tractor and trailer and completing mandatory paperwork," as described in Illston's ruling.[34]

Referring to Walmart's pay manuals, Illston wrote, "Here, certain required tasks are specifically designated unpaid activities... The Court finds that the pay policies detailed in the Manuals violate California wage law by failing to pay drivers at least minimum wage for all of the time they work."[34]

A spokesperson for Walmart disputed the court's decision, saying, "There has been no finding that any Wal-Mart driver has not been paid minimum wage for each hour worked" and that Walmart would continue to fight the truckers' claims.[33]

Walmart Abruptly Closes Five Stores, Including Site of Strike; Blames Plumbing (2015)

Accusing Walmart of closing five stores, located in Texas, California, Oklahoma, and Florida, and laying off 2,200 workers in retaliation for union organizing, a group of workers represented by the United Food and Commercial Workers International Union (UFCW) filed a complaint with the National Labor Relations Board on April 20, 2015.[35] In the complaint, the UFCW stated that one of the closed locations, a store in Pico Rivera, California, had been a central site for worker organizing and protests since 2012, including the first Walmart workers' strike in the United States, and noted that Walmart had previously been ruled by the Canadian Supreme Court to have broken Canadian law by closing a store in retaliation for unionizing.[36]

An ABC News affiliate in Tampa, Florida reported that the closings happened abruptly: "In a nearly identical manner at every store, Walmart corporate officials visited the five locations, called an impromptu meeting in the back of the store and told employees that the stores would be closing that evening." ABC described the scene outside the Florida store as chaotic.[37]

Walmart has denied allegations of labor violations and has claimed that the stores had been closed to fix plumbing issues. But an investigation by ABC News found "none of the five affected stores have sought any plumbing permits for future repairs," and that in Pico Rivera, a store manager and City Manager James Enriquez reported seeing no evidence of plumbing problems or of plumbing work being done at the store.[37]

Walmart Ordered to Pay $188 Million in Wage Theft Lawsuit (2014-2015)

In December 2014 the Pennsylvania Supreme Court confirmed earlier court decisions from 2006, 2007 and 2011 that require Walmart to pay $151 million in lost wages and damages and $36 million in attorney fees for underpaying wages to Wal-Mart and Sam’s Club employees in Pennsylvania from 1998-2006.[38] The court confirmed that Walmart forced employees to miss or shorten paid rest breaks and to work “off the clock” after punching out. The ruling is expected to affect approximately 187,000 employees and former employees.

A Walmart spokesperson told Reuters, "Walmart has had strong policies in place to make sure all associates receive their appropriate pay and break periods."[38] Despite having lost at every appeal, the company has again appealed the decision, this time to the U.S. Supreme Court, arguing that the workers' claims should not have been grouped into a class action suit.[39]

Canadian Supreme Court Rules Walmart Closed Unionized Store Illegally

In 2005, Walmart closed a store in Jonquière, Quebec shortly after workers voted to form a union, becoming the first unionized Walmart store in North America. Walmart claimed that the store was unprofitable, but workers filing the lawsuit believed the company had retaliated against the organizing effort. The Canadian Supreme Court ruled against workers in their first lawsuit, alleging violations of the right to free association, in 2009. A second suit in 2013 argued "that the company violated a provision of the Quebec labour code by changing the workers’ conditions of employment without consent while the terms of the collective agreement were being negotiated. In 2014, the Court upheld an arbitrator's ruling that Walmart had violated Quebec labor laws by closing the store. [40]

Majority of Walmart Workers Paid Less Than $25,000 a Year

Estimates of the average hourly wage for Walmart associates vary, but several independent sources put it under $9.00 per hour. An independent study found that the average Walmart associate makes just $8.81 per hour[41] and a July 2014 report found that Walmart cashiers average $8.48/hour.[42]

A Walmart pay plan[43] published in the Huffington Post frequently uses a wage of $8.00/hr in its examples of how to determine associate pay.[44]

At $8.81/hour, an employee who works Walmart's definition of full-time (34 hours per week)[45] makes just $15,500 per year. The websites Glassdoor and Pay Scale also indicate hourly wages below $10/hour. The company will frequently cite higher numbers by lumping managers in with its averages and excluding part-time and temporary workers.[46]

In a September 2013 address to investors at Goldman Sachs, Walmart US CEO Bill Simon told the audience that "over 475,000 (Walmart) associates earned more than $25,000 last year."[47]

Walmart has 1.4 million associates in the U.S., including 1 million hourly associates in its stores. Mr. Simon's statement means that the majority of Walmart employees are paid less than $25,000 a year.[48]

Though a Walmart spokesperson disputed some of the figures, he did confirm that a majority of Walmart's hourly Associates earn less than $25,000 a year.[48]

In August 2014, a Walmart assistant manager from Oklahoma wrote to Gawker about the incentives for store managers to keep payroll costs down and the consequences: "Their pay can get doubled if they meet certain criteria. A huge part of it is keeping your payroll costs down. Which means gradually forcing the long time employees out. And replacing them with temporary workers, who are not eligible for healthcare, time off, or even a discount card. Most of these people start off at $7.90 an hour and are already on public assistance."[49]

Minimum Wage Campaigns Push Walmart to Raise Base Wages

In late 2014, Reuters reported that Walmart would be forced to increase base wages in over one-third of its U.S. stores due to increases to the minimum wage in numerous states across the country. The information was contained in a leaked internal memo, which went on to explain that the company would narrow the gap between lower paid positions and higher paid positions to help absorb some of the cost. Reuters quoted an anonymous manager who explained, "Essentially that wage compression at the upper level of the hourly associate is going to help absorb that cost of the wage increase at the lower level."[50]

In February 2015, the company made an official announcement that it would increase the base wage to $9 per hour, which would affect around 500,000 workers. According to the Washington Post, "boosting half a million workers to $9 an hour will only cost it $1 billion over a year [...] which is a small chunk of the company’s $485.7 billion in revenue in fiscal 2015."[51] As a result, Walmart estimated its "average hourly wage for full-time workers will rise to $13 from $12.85 this year, while the average for part-time workers will rise to $10 from $9.48," Reuters reported.[52]

In an analysis released in February 2015, the Economic Policy Institute found "that while wages have continued to sink for people at most income levels through the economic recovery, since 2012, they have actually risen for the bottom 10 percent -- which suggests that, at a time when the economy is creating more low-wage jobs than high-wage ones, it might actually have to pay a little bit more in order to fill them," according to the Washington Post.[51] The EPI said the increase "can be attributed to a series of state-level minimum-wage increases, which have been proven to lift wages, particularly at the bottom of the wage distribution."[53] The Washington Post suggested that for Walmart, the "profit motive" was an additional factor:

"And Wal-Mart itself might have figured that putting more money in the pockets of its workers -- who are also its customer base -- might generate consumer demand that could boost its sagging profits.
"But the other thing that’s going on, of course, is a massive and sustained campaign by union-backed groups like OUR Walmart, which have been shaming Wal-Mart about its low wages for several years now [...] Public opinion is solidly in favor of a higher minimum wage, which would be nearly $11 if it had kept up with inflation since the 1960s. And in the absence of congressional action, cities and states have been boosting their own minimums accordingly -- sometimes even with Republican support."[51]

The Washington Post also suggested that the voluntary increase -- "as well as giving employees more control over scheduling, another key demand of labor groups -- potentially protects Walmart from a greater threat: Labor organizing. If employees see that they can win improvements in their working conditions without actually joining a union, they might be less likely to take a step that could give them real bargaining power over the long term."[51]

According to Reuters, labor "welcomed Wal-Mart's decision as a delayed step in the right direction":

"'For years Walmart has kicked and screamed that raising wages was not a feasible business model,' AFL-CIO President Richard Trumka said in a statement. 'Workers everywhere are glad to see Walmart change their view.'
"Others reiterated their call for it to pay least $15 an hour, which they say represents the minimum 'living wage' for U.S. workers.
"The changes by Walmart 'are inadequate for the hundreds of thousands of employees who struggle to support themselves and their families,' Christine Owens, executive director of the National Employment Law Project, said in a statement."[52]

Michael Saltsman, who works for the PR firm Berman & Co. and its Employment Policies Institute "think tank,"[54] told the Washington Post, "Just because a $10 minimum wage is the right choice for Walmart ... does not mean it should be mandated for all other businesses, regardless of industry or size."[51]

Worker Reliance on Public Assistance

Because of Walmart's low pay, hundreds of thousands of Walmart workers are forced to utilize state subsidized benefits, including food stamps and public housing. Multiple reports have examined this issue:

  • An April 2014 study by Americans for Tax Fairness estimated that subsidies and tax breaks for Walmart and the Walton family cost taxpayers $7.8 billion per year, including approximately $6.2 billion in assistance to Walmart workers due to low wages and benefits.[55]
  • An April 2014 Marketplace series found that Walmart is the largest beneficiary of dollars from the Supplemental Nutrition Assistance Program, also known as food stamps. The company receives roughly 18 percent of all food stamp dollars, more than $13 billion in revenue.[56]
  • A study by Good Jobs First found that, in many states, Walmart tops the lists of employers whose workers are most reliant on government assistance.[57]
  • A May 2013 Congressional report calculated that Walmart workers are forced to rely on $900,000 in taxpayer support, including food stamps and healthcare, at just one of the company's 4,000 U.S. stores.[58]

Increased Use of Temporary Workers

In June 2013, widespread reports indicated that Walmart was increasing hiring of temporary workers. At the time, Walmart spokesperson David Tovar said that less than 10 percent of Walmart’s U.S. workforce was temporary, compared with one or two percent previously. The ranks of full-time permanent staff are "reportedly getting slimmer and slimmer."[59]

Potential Impact of Wage Increases at Walmart

The retail sector, specifically, is the largest industry by employment in the United States, and is projected to add almost 1.1 million jobs between 2012 and 2022, more than most other industries. A study by Demos found that raising pay to a minimum of $25,000/year for full-time work at the nation's largest retailers, including Walmart, would lift more than 1.5 million retail workers and their families up from poverty or near poverty.[60]

Walmart is a Driving Force in U.S. Imports and Related Offshoring of U.S. Jobs

Walmart has long promoted free trade agreements that offshore U.S. jobs. From the 1994 NAFTA, to the 1995 World Trade Organization, to the 2000 China free trade agreement to the 2014 negotiations over the TransPacific Partnership (TPP) Walmart has pushed for agreements that offshore jobs and fuel a race to the bottom in U.S. wages and living standards. In 2014, Walmart pushed for a Fast Track trade bill[61] and was a member of the U.S. Business Coalition for the TPP.[62]

According to the Journal of Commerce, Walmart was the largest importer of goods to the United States in 2013.[63] In 2013, Walmart imported the equivalent of 731,500 containers to the United States, more than two-and-a-half times the volume of goods it imported in 2002. In 2013, Walmart was responsible for 1 in 25 containers imported into the United States.[64]

Report: Walmart's Global Web of Subsidiaries Aids Tax Avoidance (2015)

 
Partial diagram of Walmart's web of subsidiaries. Source: Americans for Tax Fairness.

In a 2015 report, Americans for Tax Fairness (ATF) identified 78 Walmart subsidiaries located in 15 tax havens, countries in which Walmart has no retail operations and few or no employees, that the company is apparently using to shield income for tax purposes. These subsidiaries, not previously disclosed in Walmart's public filings to the Securities and Exchange Commission, appear to allow Walmart to shift assets and profits from higher tax to lower tax locations to minimize the taxes it pays.[65]

For example, ATF uncovered that Walmart has shifted ownership of at least $45 billion in assets to subsidiaries since 2009, including transferring ownership of operating companies for its stores in Japan, Brazil, South Africa, and Puerto Rico, to 22 shell companies in Luxembourg. Despite the fact that Walmart has no retail stores in the country and only a handful of employees, the Luxembourg shell companies hold $64.2 billion in Walmart assets--fully 75 percent of the company's International Division's assets--and paid taxes of less than 1 percent on $1.3 billion in profits between 2010 and 2013.[65]

Additionally, while U.S. law requires companies that want to reinvest foreign profits in its domestic business to first pay U.S. taxes on those earnings, Walmart appears to have gotten around this requirement by having company subsidiaries based in Luxembourg make low-interest, short-term loans to U.S. companies "without paying any U.S. tax." According to the report,

Such a financial maneuver would mimic Hewlett-Packard’s "de facto repatriation" of offshore funds using serial short-term loans, a program that was exposed by the U.S. Senate Permanent Subcomittee on Investigations (PSI) in 2012...
During the first half of 2014, Wal-Mart Stores, Inc. took $2.4 billion in short-term loans from seven of its Luxembourg subsidiaries. Where disclosed, the interest rates on these loans were minimal – from 0.25 percent to 0.28 percent... Walmart’s use of short-term loans could permit the company to effectively use pre-U.S. tax earnings to fund its domestic operations, which would transgress the intent of U.S. law.[65]

ATF notes that Walmart may hope to take advantage of a future voluntary repatriation tax holiday, as happened in 2004, in which companies would be allowed to repatriate foreign earnings at a low or even zero tax rate. Walmart's CEO has previously testified to Congress to argue for a system that would simply exempt foreign earnings from U.S. tax.[65]

ATF's report may not provide a complete picture of Walmart's "complex and opaque" business structure due to a lack of disclosure requirements and the company's lack of transparency, the report notes.[65] A Walmart spokesperson told Reuters that the report contained errors and was misleading.[66]

Walmart's Importing and Offshoring Strategy

The United States established permanent normal trade relations with China in 2000. An economist with the Economic Policy Institute estimated that Walmart was responsible for $27 billion in US imports from China in 2006 and 11% of the growth of the total US trade deficit with China between 2001 and 2006, with Walmart’s imports during this period leading to the elimination of 200,000 US jobs.[67]

In 2004, Duke Professor Gary Gereffi told PBS Frontline that “Walmart and China are a joint venture. And both are determined to dominate the U.S. economy as much as they can.”[68]

Nobel Prize-winning economist Paul Krugman attributed the speed with which Chinese imports grew to Walmart. “One of the things that limits or slows the growth of imports is the cost of establishing connections and networks. Walmart is so big and so centralized that it can all at once hook Chinese and other suppliers into its digital system. So – wham! – you have a large switch to overseas sourcing in a period quicker than under the old rules of retailing.”[69]

Professor Gereffi further emphasizes the importance of Walmart's role in facilitating Chinese imports to the United States:

Walmart gives Chinese suppliers the specifications for Walmart products and they teach those suppliers how to meet those specifications. They have to do with price, they have to do with quality, they have to do with delivery schedule. So, in a sense, Chinese suppliers, learn how to export to the U.S. market through large retailers like Walmart.[70]

Due to Walmart's size, "even the largest suppliers must comply with its demands for lower and lower prices because they cannot afford to have their goods taken off its shelves. Companies that used to manufacture products in the United States, from Levi’s jeans to Master Lock, were pressured to shut their U.S. factories and moved manufacturing abroad to meet Walmart’s demand for low prices."[71] In turn, Walmart’s business model accelerated the use of offshore suppliers by its competitors, contributing to a greater loss of American manufacturing jobs.[71]

Walmart Announces US Manufacturing Initiative, Many Questions Remain (2013)

In January 2013, Walmart U.S. CEO Bill Simon first announced that the company would increase its purchases of American products, initially committing to buy an additional $50 billion in U.S. products over 10 years.[72] And in April 2014, the company said it has committed to “buy an additional $250 billion in products made, assembled, sourced or grown in the U.S. over 10 years in an effort to grow U.S. manufacturing and encourage the creation of U.S. jobs (began in 2013).”[73] In conjunction with this promise, Walmart has produced a series of ads, highlighting manufacturing jobs at its American suppliers.

The Numbers Need to be Put into Context

Walmart’s initial commitment to purchase $5 billion a year (based on the $50 billion over 10 years figure) in US products sounded substantial, but an increase of $5 billion per year amounts to just 2 percent of what Walmart currently spends buying goods for U.S. stores[74]. If Walmart spends $250 billion on U.S. products over the next ten years, that only represents about 8.7% of the company’s estimated total costs at Walmart U.S. and Sam’s Club over that time. In contrast, Walmart is the country’s top importer of ocean container transport goods. [75]

Walmart does not appear to be on track to take credit for one million new American manufacturing jobs either. At the end of the first year of Walmart’s program, the company’s suppliers had only created “more than 2,000 U.S. jobs,” 0.2% of the ten-year goal.[76]

Increasing U.S. Sourcing is Something that Would Happen Anyway

Walmart will likely purchase over $250 billion more in US-sourced goods in the next decade simply due to its growth as a retailer – without making substantial changes to its sourcing practices. Combined sales at Walmart US and Sam's Club have grown at just below 2.9% over the past three years,[77] and the company has said that two-thirds of its purchasing currently goes to American goods.[78] If both of those factors as well as the company's gross margin remain the same over the next decade, Walmart would be expected to spend approximately $262 billion more on American goods anyway, so this new "commitment" should actually be considered a baseline on top of which any additional domestic sourcing should be added.

In fact, the Boston Consulting Group—the same firm Walmart hired to bolster its manufacturing job creation claims—reported in September 2013 that “More than half of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the U.S. from China or are actively considering it.”[79]

Publicly available research from the Boston Consulting Group makes it clear that Walmart’s additional investment in American manufacturing is not driven by patriotism alone. A 2011 report from BCG further explains:

"China’s overwhelming manufacturing cost advantage over the U.S. is shrinking fast. Within five years, a Boston Consulting Group analysis concludes, rising Chinese wages, higher U.S. productivity, a weaker dollar, and other factors will virtually close the cost gap between the U.S. and China for many goods consumed in North America."[80]

How “Beautiful” is Work at a Walmart Supplier?

In its “Work is a Beautiful Thing” ad campaign, Walmart seizes upon the popular notion that American manufacturing jobs are well-paid jobs with good benefits, but Walmart supports the onshoring of these jobs at least partly as a cost saving mechanism in response to rising wages in China.[81]

One of the first factories touted by Walmart in March 2013 was 1888 Mills in Griffin, GA. The company makes towels for Walmart. The Los Angeles Times reported that 1888 Mills was adding a mere 35 jobs as part of Walmart’s initiative and that 90% of its production would remain overseas.[82]

Political Influence

Walmart Uses Political Muscle to Push Trade Policy that Supports Offshoring

Walmart spent $7.3 million on lobbying in 2013 alone. While this money was paid to influence a range of legislation, from lobbying against background checks for gun buyers to promoting corporate tax cuts, trade policy was among the issues Walmart lobbied on most aggressively.[83]

In fact, Walmart has lobbied to make it easier to push American jobs out of the country for years, playing a key role in in lobbying for Fast Track trade authority and NAFTA in the early 1990s,[71] as well as the World Trade Organization General Agreement on Trade in Services (which would allow them to establish stores in other WTO countries with little regard for local zoning laws),[84] China Free Trade, the Trans Pacific Partnership and other trade agreements. As one of the 600 industry advisers in the U.S. Trade Representatives Trade Advisory Committee System in 2014, a Walmart lobbyist has access to secret trade negotiating documents, including those for the Trans Pacific Partnership and the Transatlantic Trade and Investment Partnership. Ms. Angela J. Marshall Hofmann from Walmart's International Corporate Affairs division is the Vice-Chair of the USTR advisory group called ITAC-5 (distribution services). [85]

Allegations of Illegal PAC Scheme

In September 2014, the watchdog nonprofits Common Cause and Public Citizen and the workers' rights group OUR Walmart filed a complaint with the Federal Election Commission alleging that "Wal-Mart is running an illegal scheme to prod employees into contributing to its political action committee, circumventing a federal law that bars companies from putting corporate funds into political campaigns," according to the groups.[86] The complaint claims that since 2004, the company has asked management employees to give money to its PAC by promising to pay 200% of employee PAC contributions into its Wal-Mart Associates in Critical Need Fund, a 501(c)(3) charitable organization that offers financial assistance to Walmart employees in certain circumstances. According to the complaint, the solicitation employees received in 2004 read, "We're going to be relentless in encouraging participation until 100% of our management associates are on board."[87] FEC regulations prohibit a corporation for paying a PAC contributor "for his or her contribution through a bonus, expense account, or other form of direct or indirect contribution."[87] The complaint alleges that Walmart's donation-doubling is an evasion of this law.

“Federal law is clear – companies cannot fund their PACs with money from corporate coffers,” said Craig Holman, government affairs lobbyist for Public Citizen. “Wal-Mart is attempting to evade this law by providing a 2-to-1 charitable match from corporate coffers for any campaign contribution to its PAC from company managers. That flouts the law by using substantial corporate money to reward campaign contributors.”[86]

According to the complaint, employees contributed $5.3 million and Walmart itself contributed $3.6 million to the Wal-Mart Associates in Critical Need Fund in 2012.[87]

Walmart PAC Spends $17 Million on Federal Elections

From the 2000 election cycle through the 2012 cycle, the Walmart Political Action Committee and the company’s majority shareholders, the Walton family, spent nearly $17 million in federal elections.[88]

More than $11.6 million—69% of their contributions—went to Republican candidates and committees.[89]

Walmart uses corporate funds to contribute to candidates and ballot measure committees.[90] The company has been a major funder of the Republican State Leadership Committee (RSLC), the group behind the 2010 Republican takeover of state legislatures, giving over $1.5 million to the group since 2004.[91]

At the state level, Walmart has spent almost all of its political contributions on Republican candidates and committees as well as on ballot initiatives that help it build new stores or limit government regulation.[92] According to California Watch, Walmart has used the ballot initiative process to threaten costly special elections and circumvent environmental review in that state:

"The Arkansas-based retailer has hired paid signature gatherers to circulate petitions to build new superstores or repeal local restrictions on big-box stores. Once 15 percent of eligible voters sign the petitions, state election law puts cash-strapped cities in a bind: City councils must either approve the Wal-Mart-drafted measure without changes or put it to a special election.

As local officials grapple with whether to spend tens of thousands or even millions of taxpayer dollars on such an election, Wal-Mart urges cities to approve the petition outright rather than send it to voters."[93]

Ties to the American Legislative Exchange Council

In August 2011, Walmart Stores and the Walton Family Foundation were listed as chairman-level sponsors of the ALEC’s annual meeting.[94] A chairman sponsorship cost $50,000 in 2010. From 2011 to 2012, Walmart’s then-VP of Public Affairs, Maggie Sans, served as the secretary of ALEC’s ("Private Enterprise")private enterprise board.[95] Walmart executive Janet Scott was the co-chair of ALEC’s Criminal Justice Task Force in 2005, when the task force approved template language for “Stand Your Ground” laws.[96] Walmart is also the nation's largest seller of guns and ammunition, and gun sales for the company have been rising[97].

In May 2012, Walmart withdrew from the organization.[98] The Walton Family Foundation has yet to publicly sever ties with ALEC, however. Since at least 2000, ALEC has backed a number of retail-related bills, including:

  • A bill that establishes "additional regulations" on swap meets and flea markets, making it harder for those small sellers to compete with retailers like Walmart;
  • A bill that would make it a "felony" to steal from three separate retailers, no matter the value of the stolen merchandise;
  • A bill that creates harsher penalties for thieves who leave stores through the "emergency exit" door.

A list of ALEC corporations, can be found here. A list of corporations which have cut ties with ALEC can be found here.

About ALEC
ALEC is a corporate bill mill. It is not just a lobby or a front group; it is much more powerful than that. Through ALEC, corporations hand state legislators their wishlists to benefit their bottom line. Corporations fund almost all of ALEC's operations. They pay for a seat on ALEC task forces where corporate lobbyists and special interest reps vote with elected officials to approve “model” bills. Learn more at the Center for Media and Democracy's ALECexposed.org, and check out breaking news on our ExposedbyCMD.org site.

Walmart is a Lobbying Powerhouse

In 2013, Walmart spent $7,260,000 on its lobbying efforts. With the help of 14 staff lobbyists and 14 outside lobbying firms, Walmart lobbied on dozens of issues at 13 federal agencies, as well as Congress and the White House.[99]

A top priority for the company has long been taxes, with issues ranging from corporate tax reform to online sales taxes.[100] The vast majority of Walmart’s 90 lobbyists are former Hill staffers. Additionally, five were former members of Congress.[101] The lobbying firms included Patton Boggs; Prime Policy Group; Sandler, Travis & Rosenberg; Mehlman Vogel Castagnetti; and Podesta Group.

Although the company claimed to be neutral on 2014 proposals to raise the federal minimum wage, their lobbying disclosures indicate that the company has lobbied extensively on the topic.[102]

Walmart Promises Greater Disclosure of State Lobbying

In response to shareholder pressure, Walmart "said it will start disclosing directly to investors what it spends on lobbying on a state-by-state basis," Business Insider reported in May 2015. State rules vary widely, making it difficult to know how much was spent in many states. Walmart plans to offer a spending tally for each state on its website, along with a link to the related state filing document. However, Walmart stopped short of the level of transparency requested in a shareholder resolution filed by Zevin Asset Management, which also asked for disclosure of "indirect lobbying" through other organizations.[103]

Walmart Consumers Give Company Low Ratings

Walmart is the largest retailer and the largest seller of groceries in the United States[104]. In 2013, Walmart had $16 billion in profits on revenues of $473 billion[105], but the company has been struggling recently with declining same store sales[106] and negative consumer sentiment. For the year ending January, 2014, Wal-Mart saw a 0.6 percent decline in same stores sales.

In May 2014, Wal-Mart reported falling sales for five consecutive quarters.[107] The company has admitted they could bring in an additional $3 billion a year by solving out-of-stock problems generally attributed to understaffing.[108] Various measures of consumer sentiment indicate that Wal-Mart’s low-cost business model may be negatively impacting the company’s growth.[109][110], [111]

Since 2007, Wal-Mart has ranked last on the American Customer Satisfaction Index[112] for retailers.[113][114] Wal-Mart also came in last, and well below average, in a 2013 survey of 6,600 of grocery shoppers by Market Force Information. In the Market Force survey, Walmart did not score in the top five on any of the operational attributes or product quality categories about which customers were surveyed – including the speed of check-out, cleanliness, and the quality of meat and produce.

In a 2014 survey of 27,000 Consumer Reports subscribers, respondents ranked Wal-Mart last among 55 supermarkets.[115] In the survey, respondents said that prices were as good or better at seven highly ranked supermarkets.[116]

A recent poll by Lake Research Partners found that among Walmart’s most loyal customers, those who shop there weekly, 9% say they have been shopping there less. Among these shoppers, "25% cite poor treatment of workers as a reason why they have been shopping there less."[117] Amplicate, which collates and analyzes online public opinion, has called Walmart the “least loved department store on social.”[118]

The New York Times reported on an internal company memo that indicated customers were losing trust in the quality of Walmart’s produce. The Times cited analysts who said the company “has cut so many employees that it no longer has enough workers to stock its shelves properly.[119][120][121]

In her 2012 investigative book, The American Way of Eating journalist Tracie McMillan concluded that Walmart’s management systems “completely broke down when it came to produce” contributing to problems with spoilage and lost sales.[122]

Walmart One of Largest Greenhouse Gas Polluters

Walmart is one of the "biggest and fastest growing" climate polluters in the nation, say experts. Since 2005, the year the company launched its “sustainability” campaign, Walmart’s self-reported greenhouse gas emissions have grown 14 percent.[123] Walmart's direct and indirect emissions now exceed those of many countries. This calculation does not include a number of sources of emissions, including those connected to ocean shipping of goods sold in Walmart stores.[124]

  • Compared to other large U.S. corporations, Walmart has been slow to shift to renewable power. It currently gets 4% of the electricity for its stores from wind or solar. In contrast, Kohl’s and Staples get 100% of their electricity from renewable sources, while Starbucks get 70% and McDonald’s gets 30%. Walmart’s use of renewable power decreased between 2012 and 2013.[124]
  • In 2007, the company set a goal of becoming packaging neutral by 2025.[125] After reducing packaging by 5%, the company declared the goal “not met” and ended the program in 2013.[126]

Environmental Impact of Walmart Business Model

Walmart’s business model carries a heavy environmental impact.

  • Big-box problems: Each one of Walmart’s 3,200+ Supercenters, averaging 105,000 square feet,[127] are estimated by the Sierra Club to use as much energy each day as nearly 1,100 homes.[128]
  • Sprawl and land consumption: Walmart is known for building large stores, along with massive parking lots, on the fringes of communities, in areas ill-served by public transit. Its selection of construction locations for new stores has been criticized for encouraging more car travel, sprawl, and irresponsible land use.[129][124]
  • Selling low-quality goods: Walmart’s focus on cutting costs has led suppliers to produce cheaper goods of lesser quality.[124] These goods wear out or break faster – requiring frequent replacements and creating more waste.[124] This creates a cycle that helps Walmart’s short-term sales but creates significant waste and environment impact in the long-term.[130]
  • Supply chain: Walmart is the U.S.’s largest importer of containerized ocean cargo. While ocean shipping is a major source of greenhouse gas emissions, Walmart does not include the environmental impact of ocean shipping in its greenhouse gas emissions calculations. [131]

See also the 2015 report, Walmart at the Crossroads: The Environmental and Labor Impact of its Supply Chain.

Political Spending Favors Environmental Opponents

Walmart and the Walton family, the majority owner of the company, shows that Walmart and the Waltons are major contributors to electoral campaigns of politicians who obstruct action on the environment. In 2012, Walmart gave the "bulk of its money (over $3.6 million in the 2012 cycle) to lawmakers who regularly vote against the environment." [132]

Between 2005 and 2012, Walmart and the Waltons gave $2.1 million, more than half of their total Congressional campaign donations, to members of Congress with lifetime scores of 30 or less on the League of Conservation Voters scorecard. In addition, 69% of contributions from the Walmart PAC and 88% from the Walton family in 2011 and 2012 went to lawmakers who voted in favor of the Keystone XL Tar Sands Pipeline in 2012.[133]

Veterans Offered Low Pay Jobs While Walmart Receives Subsidies

In May 2013, Walmart announced an initiative to “offer a job to any honorably discharged veteran within his or her first 12 months off active duty.”[134] The company clarified with the New York Times that they could not guarantee that these jobs would be full-time.[135] The company estimated that they would hire more than 100,000 veterans during the next five years,”[136] equivalent to 4 percent of the positions the company will need to fill in this timeframe.[137]

Under the federal Work Opportunity Tax Credit (WOTC), Walmart will receive up to $9,600 in tax credits per veteran employee.[138] [139] Walmart has hired PeopleScout, a recruitment process provider, to handle the screening of veteran applications.[140] The website that PeopleScout created for applicants to Walmart includes a mandatory 13-question section labeled WOTC Questionnaire. This questionnaire determines if Walmart will receive a tax credit for hiring the applicant and the potential value of the credit. Walmart is also a member of the WOTC Coalition, a national organization that lobbies for extension of the WOTC.[141]

Concern over Job Quality for Veterans

The Boston Globe reported after the original veterans hiring announcement in January that “Walmart’s plan will help veterans meet their immediate need for a meager paycheck, but it won’t give them what they most desire over the long term: sustained support and training, now and in the future, that connect skills learned in the military with economic opportunities. Indeed, veterans’ long-term careers would barely be advanced if every retailer took up Walmart’s cause.”[137]

In an op-ed in Salon, disabled veteran and former Walmart associate Wally Lynn wrote about his experience, “Veterans from every American generation have put their lives on the line for our country, and it’s an insult that our country’s largest private employer pays us back with poverty jobs and erratic schedules that make it impossible to raise our families.”[142]

Female Walmart Workers Face Low Pay, Pregnancy Discrimination and Erratic Scheduling

The majority of Walmart associates (57%) are women.[143] The company has been the target of a significant number of lawsuits alleging gender discrimination - particularly around pay, promotions and safety accommodations at its stores.[144]

Walmart vs. Dukes, Gender Discrimination Lawsuit

Walmart spent 11 years as the defendant in the largest class action gender discrimination lawsuit in history, Dukes v. Walmart. The plaintiffs alleged Walmart discriminated against women in promotions, pay, and job assignments. [145] While fighting the class action status of the suit, Walmart maintained that the company has a strong ban on discrimination.[146]

Ms. Dukes was a Walmart associate from Pittsburgh, California. Her suit alleged that Walmart illegally discriminated against her by repeatedly denying her application for promotions and by retaliating against her when she continued to request these opportunities.[147]

The U.S. Supreme Court dismissed the lawsuit in 2011 for technical reasons; a decision was never issued on its merits. Subsequent suits with smaller classes have been filed in California, Texas, Tennessee, Florida, Wisconsin and other states.[148]

Differences in Pay and Leadership Roles by Gender

Women make up the majority of Walmart associates [149] and, as a result, are most directly impacted by the company’s low wages. In fact, 57% of Walmart’s workforce is made up of women. [150]

Although Walmart does not disclose current figures on differences in pay for men vs. women, a 2003 study found that female Walmart employees at all levels earned less than their male counterparts.[151] Women at Walmart earned $5,200 less per year than men, on average. Women who worked in hourly positions earned $1,100 less than men in the same position. Women in salaried positions earned $14,500 less than men in the same position.[152]

According to the most recent data available, in 2012, only 42% of Walmart officials and managers were women.[153] Women only hold 28% of the top positions at the company.[154]

Walmart Changes Pregnancy Policy Due to Worker Pressure

Walmart announced in April 2014 that it would alter its policy around accommodating pregnant women who work at Walmart. The change came after members of OUR Walmart who are worker-shareholders submitted a shareholder resolution to the company advising Walmart change its policy. Walmart reworked its policy so that women with pregnancy-related complications could be considered “temporary disabled” and would be eligible for “reasonable accommodation.”[155]

Walmart workers and their supporters from women’s rights organizations including the National Women’s Law Center, a Better Balance and the National Partnership for Women and Families had been pressuring the company, arguing that, prior to the change, Walmart’s pregnancy policy was in violation of the Americans with Disabilities Act.[156] [157]

Workers and Women's Rights Groups Push for Additional Improvements to Pregnancy Policy

 
Tiffany Beroid, a leader of group "Respect the Bump"

Walmart workers and women’s advocates say Walmart's changed policy is an improvement but needs additional upgrades. Experts claim the wording isn't fully in line with the Pregnancy Fairness Act, and the wording of the policy could pose problems. Writing in the Huffington Post, law professor Deborah Widiss argues:

…. the relatively narrow wording Walmart has chosen for its policy suggests the company might not grant such requests if made by women with "healthy" pregnancies. This would be unfortunate -- and also often illegal. Walmart should revise its new policy to make clear that it will provide medically recommended accommodations for all its pregnant employees.[158]

Walmart and the Walton Family's History of Funding Candidates Who Vote Against the Best Interests of Women

The Walmart PAC and the Waltons spend millions of dollars each year on politics. And both give disproportionately to candidates who vote to weaken women's rights. From 2005 to 2012, among candidates with scores on the American Association of University Women’s 2012 Congressional scorecard, the majority of the Walmart PAC and Waltons’ contributions went to those with scores of 25 and below out of 100.[159]

In fact, over that time period Walmart and the Waltons gave over $1.5 million to candidates with scores of 0. The scorecard factors in a range of issues including the re-authorization of the Violence against Women Act, the Paycheck Fairness Act, Planned Parenthood funding, and education.[160]

Walmart Heirs Wield Outsize Influence on U.S. Politics and Economy

Walmart is majority-owned by the Walton Family,[161] the wealthiest family in the United States with a fortune of $148 billion.[162]

Walmart was founded by Sam Walton and his brother Bud. They opened their first store in 1962.[163] Walmart is currently run by the next generation of Waltons, the children of Sam and Helen Walton. S. Robson "Rob" Walton (Wealth:$33.3 billion)[164] is Chairman of Walmart and has been on the company Board since 1978.[165] Rob's brother, Jim Walton (Wealth: $33.8 billion)[166]) is also a member of the Board of Directors.[167]. The final Walton family member on the Walmart Board member is Greg Penner.[168] Mr. Penner is the son-in-law of Rob Walton and his married to Mr. Walton's daughter, Carrie Walton Penner.[169]

Alice Walton (Wealth: $33.5 billion)[170] is not on the Walmart Board but is a major holder of Walmart shares.[171]

Christy Walton (Wealth: $35.4 billion)[172] is currently the richest woman in the world. She is the widow of John Walton who died in a private plane crash in 2005.[173]

Second Generation of Walton "Philanthropists" Fail to Support Family Foundation

The Walton Family runs the Walton Family Foundation (WFF). The WFF has nearly $2 billion in assets and is one of just 56 private foundations in the United States that exceeds $1 billion.[174] However, the foundation's assets are less than 1.5% of the Walton's net worth.[175]

A 2014 report found that the Walton family gives surprisingly little to the family foundation.[176] In fact, the report found that Rob Walton, chairman of Walmart’s board of directors, has not made a single contribution to the foundation, and neither has his sister, Alice Walton. Jim Walton made one personal contribution of $3 million to WFF, more than 15 years ago. In all, the total contributions of Rob, Jim, Alice, and Christy Walton, and their family holding company to the WFF amount to $58.49 million, or 0.04% of their net worth.

Walton Family Foundation Pushing Charters, Vouchers, Privatization of Public Schools

The Walton Family Foundation is one of the key drivers behind a vision of public education reform that seeks to, in the words of the WFF, infuse competitive pressure into America’s K-12 education system."[177]

The WFF has given more than $1 billion to corporate-style education reform initiatives, including millions to the pro-voucher, pro-privatization Alliance for School Choice.[178]

The foundation supports the legal assault on tenure in California.[179] The Foundation called the judge’s decision in Vergara vs. California a “historic victory,” and claims that California’s tenure system keeps “grossly ineffective teachers in front of students year after year.”[180]

In December 2013, the WFF announced that it would contribute $6 million to the Alliance for School Choice, with the aim of doubling the number of students attending private schools with publicly-funded vouchers.[181]

In 2013, the WFF contributed almost $500,000 to fund the “community engagement” process that led to the closure of more than 50 Chicago public schools.[182] [183]

Report on WFF's Influence on School Privatization Movement (2015)

In 2015, In the Public Interest and the American Federation of Teachers released a report, "Brought to You by Walmart? How the Walton Family Foundation's Ideological Pursuit is Damaging Charter Schooling," which according to its own description "explores the radical agenda of the Walton family and the foundation it controls, and how that agenda has taken the U.S. charter school movement away from education quality in favor of a strategy focused only on growth."

Executives and Compensation

Executives and Compensation[184] Total fiscal year 2014 compensation:

  • Michael T. Duke, then-President and CEO - $5,643,677
  • C. Douglas McMillon, current President and CEO - $25,592,938
  • Charles M. Holley, Jr, Executive Vice President and CFO - $8,199,391
  • William S. Simon, Executive Vice President and CEO of Walmart US - $13,054,360
  • Neil M. Ashe, Executive Vice President and CEO of Global eCommerce - $13,178,743
  • Rosalind G. Brewer, Executive Vice President and CEO of Sam’s Club - $ 11,664,423

Walmart Directors and Compensation for Fiscal 2014[185]

  • Aida Alvarez $269,404
  • James Cash $345,925
  • Roger Corbett $304,846
  • Pamela Craig $116,677
  • Timothy Flynn $320,812
  • Marissa Mayer $263,607
  • Gregory Penner $278,745
  • Steven Reinemund $257,046
  • H. Lee Scott, Jr $244,660
  • Jim Walton $247,089
  • Christopher Williams $384,821
  • Linda Wolf $284,351

Note: Lee Scott and Christopher Williams stepped down from the Walmart board, effective June 2014.

Contact info

WalMart Stores, Inc.
Attn: Customer Service
702 S.W. 8th Street
Bentonville, AR 72716
Phone: 1-800-WALMART (1-800-925-6278)
Fax: 479-277-1830
Web: http://www.walmartstores.com (corporate)
Web: http://www.walmartfacts.com Wal-Mart's Advocacy site

Articles and Resources

External Resources

Walmart at the Crossroads: The Environmental and Labor Impact of Its Food Supply Chain, Food Chain Workers Alliance, June 2015.

Catherine Ruetschlin "Retail's Hidden Potential: How Raising Wages Would Benefit Workers, the Industry and the Overall Economy" Demos November 19, 2012
"Making Change at Walmart"
"Glassdoor page for Walmart Stores"
"Payscale page for Walmart"

Robert E. Scott, "Walmart's Reliance on Chinese Imports Costs U.S. Jobs" Economic Policy Institute, June 27, 2007.

Harold L. Sirkin, Michael Zinser, Douglas Hohner,"Made in America, Again: Why Manufacturing Will Return to the U.S." Boston Consulting Group. August, 2011

Marsha Salisbury “Top 100 US Importers in 2013” Journal of Commerce May 23, 2014

"Walmart Class Website"

"Making Change at Walmart"

"Walmart 1%: The People Behind the Walmart Empire"

External Articles

Alana Semuels, "Factory Growth is No Job Machine" Los Angeles Times March 3, 2013

Amy Traub "Not Made in America: Top 10 Ways Walmart Destroys U.S. Manufacturing Jobs" Demos July 2, 2012

Susan Berfield "More Than Half of Walmart's Hourly Workers Make Less Than $25,000/Year" Business Week October 23, 2013

Avi Rabin-Havt "Walmart Flunks Its Fact Check the Truth Behind Its Sarcastic Response to the Times" Salon.com June 25, 2014

Steven Gandel "Why Wal-Mart Can Afford to Give Its Workers at 50% raise" Fortune November 12, 2013.

Nina Martin "The Impact and Echoes of the Walmart Discrimination Case" ProPublica September 27, 2013

Karen McVeigh and Dominic Rushe "Walmart Moms Walk Off the Job in Protest at Pay and Conditions" The Guardian, June 4, 2014.

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