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News and Updates
Retail
November 15, 2006
PETITION DRIVE DEMANDS PROTECTIONS FOR BROOKS AND ECKERD DRUGSTORE CUSTOMERS AND EMPLOYEES
An intensive one hundred city and town petition drive is launching today aimed at customers and workers affected by the proposed purchase of Brooks and Eckerd drugstores by Rite Aid. The United Food and Commercial Workers Union (UFCW) and UNITE HERE are concerned that the purchase will result in store closings that could negatively impact people who rely on these drugstores for employment and for access to prescription medication.
Leafleting and petitioning activity will take place Wednesday, November 15, 2006 in front of Brooks and Eckerds drugstores located in your community. Call media contacts for locations of activities.
“We can’t lose sight of the fact that transactions like this have an immediate impact on people’s lives. The goal of the petition is not to block or permit Rite Aid from buying other drugstores. But the proposed transaction is likely to have an impact on customers, and that impact should be reviewed by state-based officials to make sure that retirees, the disabled, and other vulnerable drugstore customers and workers are not harmed by this transaction,” said Joe Hansen, UFCW International President.
“We believe Brooks and Eckerd’s customers and employees are concerned about their stores being bought. This petition gives them an opportunity to voice that concern. They are constituencies that we hope the Attorneys General will take steps to protect from the potential impact of store closings or sales,” said Bruce Raynor, president of UNITE HERE.
The transaction is already being reviewed by the Federal Trade Commission, the federal agency responsible for reviewing the antitrust impact of business combinations in the retail drugstore sector. The petition [attached] calls on the state Attorneys General to open their own investigations to add a more local level of review to the Rite Aid transaction.
State Attorney Generals’ offices often conduct parallel antitrust investigations to their federal counterparts. In 1996, four states announced their opposition to a larger transaction that Rite Aid had proposed on antitrust grounds, effectively blocking the purchase.
Rite Aid announced on August 24, 2006 its intention to purchase over 1,800 Eckerd and Brooks drugstores for $3.4 billion from the Jean Coutu Group, Inc., a Canadian corporation. The transaction as proposed would make Rite Aid the dominant drugstore chain in many markets throughout the eastern United States.
September 26, 2006
FOOD AND COMMERCIAL WORKERS LAUD NATIONAL CONSENSUS ON HEALTH CARE FOR ALL
(Washington, D.C.) – Yesterday, members of the United Food and Commercial Workers Union (UFCW) lauded the recommendations of the Citizens Health Care Working Group (CHCWG) which shows remarkable consensus among Americans for public policy that ensures all Americans, regardless of their financial resources or health status, have affordable health care coverage. UFCW members are on the frontlines of the struggle for affordable health care for working families. Today’s report outlines what millions of working families already know – the health care system is at the tipping point and Americans want significant change to happen now.
UFCW International President Joe Hansen has served on the 15-member CHCWG since its inception in 2005. Created by an act of Congress, the CHCWG has created an historic national dialogue among Americans about their experience with the nation’s health care system.
“”I’m proud of the work we have done together as the Working Group by engaging a broad cross-section of Americans to weigh in on the health care crisis. Washington gridlock has prevented meaningful reform in the past and now the mandate is clear: Americans demand immediate and significant action,”” said Joe Hansen.
Over the past year, the CHCWG engaged the American public in groundbreaking national dialogue on health care across 37 states with more than 35,000 responses on the internet. The message was clear, and consistent with national polls: Americans want health care for all; they want the delivery system fixed, they want waste eliminated, and they are willing to pay their fair share as long as the government and businesses do the same.
The report details America’s strong desire for comprehensive health care reform and sense of urgency that changes happen immediately. The CHCWG recommendations will be presented to Congress and the President and urge action in 2007 to pass legislation that will ensure all Americans have affordable health care by 2012. The Working Group also provided immediate steps that can and should be taken to provide security for American families and access to services in their communities.
As health care costs continue to rise out of control and the number on uninsured rises, the employer based health care system is crumbling. Responsible employers shoulder a heavier burden of health care costs due to companies like Wal-Mart that refuse to pay its fair share. Companies like Wal-Mart cut costs by making basic coverage too expensive for their workers only make the problem worse.
The CHCWG recommendations provide lawmakers with a road map for fixing the system.
“”The American people want fundamental reform that brings quality health care coverage for everyone. Obviously we can’t solve the health care crisis at the bargaining table. We need a national solution to this national crisis,”” continued Hansen.
To read more about the CHCWG recommendations to Congress and the President, log on to www.ufcw4healthcare.org
July 31, 2006
WAKEUPWALMART.COM LAUNCHES 2006 “”CHANGE WAL-MART, CHANGE AMERICA”” CROSS-COUNTRY BUS TOUR
NATIONWIDE EVENTS PLANNED WITH PROMINENT POLITICAL LEADERS AND COMMUNITY GROUPS FROM COAST-TO-COAST/ BUS TOUR TO VISIT 19 STATES, 35 CITIES IN 35 DAYS
Washington D.C. – WakeUpWalMart.com, America’s campaign to change Wal-Mart, is taking its national movement, and headquarters, on the road in a non-stop cross-country tour hitting 19 states, 35 cities, in 35 days. The nationwide bus tour, titled the “”2006 Change Wal-Mart, Change America Tour,”” is an unprecedented and exciting new move in the group’s campaign to change Wal-Mart into a responsible and moral employer.
The tour launches on August 1st in New York City and ends in Seattle on September 4th, Labor Day. During the tour, the WakeUpWalMart.com campaign will hold a series of events each day with supporters and political leaders to build public awareness about the need for Wal-Mart to change into a better corporate citizen. Some of the nation’s most prominent civic and political leaders will take part in the tour, including former Democratic Vice-Presidential Candidate and former U.S. Senator John Edwards, Iowa Governor Tom Vilsack, Congresswoman Rosa DeLauro, Ohio U.S. Senate candidate Congressman Sherrod Brown, Maryland U.S. Senate candidates Congressman Ben Cardin and former NAACP President Kweisi Mfume, Connecticut U.S. Senate candidate Ned Lamont, Connecticut Governor candidate, John DeStefano, Ohio Congresswoman Marcy Kaptur, Anna Burger, President of the Change-to-Win labor federation, and many others. Additional announcements concerning speakers and event details will be made ahead of each of the tour stops.
“”Whether it is at community meetings of 20 people, town halls, busy public squares, metro stops or state fairs with thousands of people, we are taking our campaign to change Wal-Mart directly to the American people because we know by joining together we can change Wal-Mart and change America for the better,”” said Paul Blank, campaign director for WakeUpWalMart.com.
On the “”2006 Change Wal-Mart, Change America”” bus tour WakeUpWalMart.com will be holding a series of events and actions all across America, including townhalls, community meetings, canvasses, as well as a summer membership drive at sporting events, state fairs, public squares, and at various Wal-Mart stores. In addition, as part of the 5-week tour, WakeUpWalMart.com will also release a new 30-second ad, titled “”One Mission”” that will air in cities across the country in coordination with the tour stops.
“”From the East Coast, to America’s heartland to the West Coast, we are asking Americans to join the fight for a better America where workers have good paying jobs and affordable health benefits. Our goal is to unleash an exciting new grassroots movement to hold corporations accountable, empower the American people, and make Wal-Mart a responsible corporate citizen that provides affordable health care, pays a living wage, protects American jobs and reflects the best of our values,”” added Blank.
The star of the “”2006 Change Wal-Mart, Change America”” tour is a 55-foot long bus (more like a monster billboard) nicknamed “”Smiley.”” The bus will be wrapped side-to-side and front-to-back in a patriotic American flag emblazoned with the group’s website, WakeUpWalMart.com, and the name of the tour, “”2006 Change Wal-Mart, Change America Tour.”” In addition, on each side of the bus, the central messages of the tour will be highlighted for all to see – including “”Join America’s Fight for Health Care,”” “”Join America’s Fight for Good Jobs”” and “”Join the Fight for a Better America.””
A unique feature of the tour will be a new power point presentation which will be unveiled at various town halls and community meetings. The power point, modeled after Vice President Al Gore’s recent documentary is titled, “”A Costly Truth,”” and will serve as a powerful tool to educate the American public about why Wal-Mart needs to change, the national cost we are paying because of Wal-Mart’s business model, and how Wal-Mart threatens America’s middle class.
During the 35-day tour, the details and location for each day’s planned events will be made available at WakeUpWalMart.com in a special section which will chronicle the groups adventures and experiences, as well as provide a video blog, photo updates, and a journal of each day’s events and experiences.
A list of the cities, events, and tour dates are below. Please visit WakeUpWalMart.com to learn more about details of events and get updates on any last minute changes.
1-Aug New York NY
2-Aug Bridgeport CT
2-Aug Philadelphia PA
3-Aug Baltimore MD
4-Aug Pittsburgh PA
5-Aug Detroit MI
6-Aug Toledo OH
7-Aug Cleveland OH
7-Aug Elyria OH
8-Aug Columbus OH
9-Aug Cincinnati OH
9-Aug Dayton OH
10-Aug Springfield IL
11-Aug St. Louis MO
12-Aug Andersonville IL
12-Aug Chicago IL
13-Aug Milwaukee WI
14-Aug Madison WI
15-Aug Minneapolis MN
16-Aug Davenport IA
17-Aug Waterloo IA
18-Aug Iowa City IA
19-Aug Des Moines IA
20-Aug Council Bluffs IA
21-Aug Omaha NE
22-Aug Denver CO
22-Aug Pueblo CO
24-Aug Albuquerque NM
25-Aug Phoenix AZ
26-Aug Las Vegas NV
26-Aug Los Angeles CA
27-Aug Santa Ana CA
27-Aug Rosemead CA
28-Aug San Francisco CA
29-Aug Oakland CA
29-Aug San Jose CA
30-Aug Sacramento CA
1-Sep Salem OR
2-Sep Portland OR
4-Sep Seattle WA
July 31, 2006
A Statement from the UFCW on the FDIC
(Washington, DC) – The United Food and Commercial Workers International Union (UFCW) applauds the Federal Deposit Insurance Corporation’s (FDIC) decision to place a six-month moratorium on applications for deposit insurance by Industrial Loan Companies (ILCs). The FDIC has stated that it will not make final decisions or accept future applications for deposit insurance or notices of change in control for ILCs during this time period.
The FDIC put the moratorium in place in order to assess developments in the ILC industry, and to determine whether statutory, regulatory or policy changes need to be made in the oversight of ILC charters and ILC applications procedures and standards.
“This moratorium is a good first step in preventing the mix of commerce and banking,” said Michael J. Wilson, UFCW International Vice President and Director of Legislative and Political Action. “The FDIC’s concern with the application by Wal-Mart and other large commercial firms is well grounded, and this moratorium is an appropriate response.”
Earlier this year, UFCW participated in public hearings held by the FDIC. These unprecedented hearings were held in two cities over three days in order to accommodate the large number of elected officials, organizations, and associations who voiced concerns about Wal-Mart’s application for an ILC.
ILCs are regulated differently than banks because they were originally small entities permitted by a loophole in the Bank Holding Act. If Wal-Mart—the world’s largest retailer with a history of unethical business practices—is granted access into banking via an ILC charter, there will be far-reaching consequences beyond the original intent of the Act.
If Wal-Mart is chartered in Utah, a “Wal-Mart bank” could branch out into more than 20 states because of state reciprocal branching laws. Approving the Wal-Mart application risks not only undermining the separation between commerce and banking, but threatens an expansion of “Wal-Mart banks” in multiple states, and in multiple aspects of the banking industry.
“UFCW will continue working with its partners in the Sound Banking Coalition, in the labor movement, and with consumer and community groups to make sure the FDIC is aware of the serious concerns about Wal-Mart’s application into banking,” said Wilson. “In addition, we will also continue working with our partners in the states to enact state banking protection laws to prevent Wal-Mart from expanding to states beyond Utah.”
The FDIC’s six-month moratorium expires on January 31, 2007.
July 26, 2006
Emergency Petition Assails OSHA
(Washington, DC) —On July 26, 2006, two affiliate unions of the Change to Win federation — the United Food and Commercial Workers International Union (UFCW) and the International Brotherhood of Teamsters — began petitioning the Department of Labor (DOL) to immediately issue an Emergency Temporary Standard to stop the continued risk of diacetyl exposure to workers. In 2002 and 2003, OSHA’s own scientists studying diacetyl unsuccessfully urged their leaders to take broader action to protect workers. There are currently no OSHA standards requiring exposures to be controlled.
Diacetyl is a hazardous chemical that has been connected to a potentially fatal lung disease that has been experienced by food industry workers across the nation. There have been dozens of cases of what has become known as “popcorn workers lung,” or bronchiolitis obliterans—a severe, disabling, and often-fatal lung disease experienced by factory workers who produce or handle diacetyl.
“Three workers have died and hundreds of others seriously injured,” said Jackie Nowell, UFCW Safety & Health Director. “It’s time for action. We will not let food processing workers continue to be the canaries in the coal mine while waiting for the industry to regulate itself.”
More than 8,000 workers are employed in the flavorings production industry and may be exposed to the dangers of diacetyl and other similar chemicals. Tens of thousands of food processing workers are involved in the production of popcorn, pastries, frozen foods, candies and even dog food that use these chemicals. It is not clear whether consumers are at risk from exposure to diacetyl but certainly the workers who deal with high concentrations of the flavoring chemical are at risk of developing serious and irreversible lung damage.
The unions’ petition is accompanied by a letter from forty-two of the nation’s leading occupational safety scientists, including a former OSHA director, five former top officials from OSHA, the Environmental Protection Agency, and the Department of Health and Human Services, who all agree that there is more than enough evidence for OSHA to regulate.
“”Study after study have shown that breathing artificial butter flavor destroys workers lungs. We know how to prevent this terrible disease but OSHA refuses to act”” said Dr. David Michaels of the Project on Scientific Knowledge and Public Policy at the George Washington University School of Public Health.
The UFCW and Teamsters filed the petition for an Emergency Temporary Standard with the DOL to require employers to control airborne exposure to diacetyl and ensure that all employees who are exposed to a certain airborne level of the chemical are provided with air purifying respirators. The safety of these workers would be additionally monitored through medical surveillance and regular consultations.
The petition also demands that OSHA immediately issue a bulletin to all employers and employees potentially exposed to diacetyl outlining the dangers of the chemical. OSHA is being asked to conduct inspections and begin rule-making proceedings to establish a permanent standard that will put an end to this tragic epidemic and protect workers from exposure to all flavorings.
“The science is clear. Now it is time for the Department of Labor to employ their regulatory mandate and protect the public,” said Lamont Byrd, Teamster Safety & Health Director. “Such illnesses and fatalities are avoidable and therefore, inexcusable. An Emergency Standard is necessary to prevent the suffering and death of the additional workers who will get sick during the time it would take for OSHA to set a Permanent Standard.”
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The United Food and Commercial Workers International Union’s 1.4 million members work in America’s supermarkets, meatpacking and food processing plants. Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women throughout the United States and Canada. Both unions are founding members of the Change to Win federation. www.changetowin.org
For more information and studies about Popcorn Workers Lung Disease, go to www.DefendingScience.org
July 20, 2006
JUDGE APPLIES CODE OF UNIVERSAL IRRESPONSIBILITY TO RIP HEALTH CARE COVERAGE FROM MARYLANDAL-MART WORKERS
(Washington, DC) — In a cynical catch 22 decision U.S. District Court Judge J. Frederick Motz determined that Maryland state government could not require companies operating in the state to provide adequate health care coverage for employees because federal law trumped Maryland’s Fair Share Health Care Act passed last winter.
The act required companies with 10,000 or more employees to spend at least 8 percent on employee health care or pay the difference in taxes.
Motz’s decision follows bizarre logic. Essentially it says because Wal-Mart acts uniformly irresponsibly nationwide by failing to provide adequate heath care for employees, states cannot enact legislation to require companies to meet certain responsible employee health care standards.
The losers in Motz’s decision are Maryland Wal-Mart workers—since Wal-Mart is the only large company that wouldn’t have been in compliance with the legislation.
Clearly, for Motz to conclude that the legislation would hurt Wal-Mart because it would have amounted to the company doing extra paper work in Maryland is more than bizarre and his decision should be appealed and overturned.
Motz’s decision puts the interests of the world’s largest retailer over the needs of Maryland citizens like Cynthia Murray who has worked for Wal-Mart for five years and still can’t afford the Wal-Mart health care plan. Wal-Mart’s irresponsible corporate agenda shifts medical treatment costs to taxpayers and responsible corporations and further strains America’s failing health care system.
June 28, 2006
WAL-MART
Despite multiple headlines in October 2005 which read “”Wal-Mart Urges Congress to Raise the Minimum Wage,”” Wal-Mart announced today it does not support raising the minimum wage to $7.25 an hour.
According to an article in this morning’s Roll Call, Lee Culpepper said Wal-Mart’s CEO Lee Scott’s statement was ‘misinterpreted,’ and that ‘Scott was not calling for Congress to raise the minimum wage.’
“”Wal-Mart’s flip flop on the minimum wage is a cynical about-face which hurts America’s working families,”” said Paul Blank, campaign director for WakeUpWalMart.com. “”This is hypocrisy at its worst and the American people are the ones that will pay the price,”” continued Blank.
In this morning’s article, Lee Culpepper insisted, “”I think what he (Mr. Scott) said was clear.”” Mr. Culpepper is right. Mr. Scott’s statement was clear. He said the minimum wage was ‘out of date with the times’ and therefore should be raised.
Here is what Mr. Scott said in October 2005, “”The U.S. minimum wage of $5.15 an hour has not been raised in nearly a decade and we believe it is out of date with the times…while it is unusual for us to take a public position on a public policy issue of this kind, we simply believe it is time for Congress to take a responsible look at the minimum wage and other legislation that may help working families.””
Blank continued, “”Wal-Mart’s flip-flop proves the company’s publicity stunts are nothing more than a sham. Wal-Mart will say anything, even lie about its position on the minimum wage, in order to try and salvage its declining public image.””
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Critics: Wal-Mart Flip-Flopped
Roll Call
June 28, 2006
By Tory Newmyer
Last October, Wal-Mart chief executive Lee Scott made waves by urging Congress to consider raising the federal minimum wage – something many retailers had long opposed.
He noted that the store’s own customers are “”struggling to get by,”” then added that “”while it is unusual for us to take a public position on a public policy issue of this kind, we simply believe it is time for Congress to take a responsible look at the minimum wage and other legislation that may help working families.””
The declaration came as part of a broader push by the low-cost retailer to put a friendlier face on its often troubled corporate image.
But now, with both chambers of Congress mulling hikes to the federal pay standard, Wal-Mart’s critics are charging that the company has abandoned Scott’s pledge to support a higher wage. They say that after reaping good public relations from Scott’s statement last fall, Wal-Mart has cynically dumped the issue, even as major trade groups it belongs to, primarily the U.S. Chamber of Commerce and the Retail Industry Leaders Association, help lead the fight against a higher minimum wage.
“”They did this for PR reasons, and then the true colors come out when the talk no longer meets up with that action. In this case, it’s pretty obvious,”” said Chris Kofinis, spokesman for Wake Up Wal-Mart, a group that’s critical of the company’s practices.
Wal-Mart officials acknowledge, and several Congressional aides confirm, that the retail giant is sitting out the debate on the minimum wage increase. But the company disputes the notion that the move amounts to an about-face from the position Scott represented last fall.
Instead, Lee Culpepper, the company’s top lobbyist in Washington, D.C., said the chief executive’s statement was misinterpreted. Scott was not calling for Congress to raise the minimum wage, Culpepper said – he simply was asking lawmakers to consider the issue.
“”We haven’t said anything more or less,”” Culpepper said on Tuesday. “”I think what he said was clear. He said Congress should take a look at it. If reporters want to report differently from that, I can’t speak to that.””
Culpepper said the company’s lobbyists have communicated Wal-Mart’s position on the issue to its trade groups.
“”We’ve just made them aware that we’ve encouraged Congress to take a look at an increase in the minimum wage,”” he said. But he said the company has not gone so far as to ask the trade groups not to lobby on the issue, leaving it up to them “”to determine their association position.””
To Wal-Mart’s critics, the company’s inaction, combined with the robust opposition to a wage hike thrown up by trade groups it belongs to, add up to a backdoor push by the nation’s largest employer to stifle a higher pay standard.
Wake Up Wal-Mart, a group primarily funded by labor groups, last week challenged the company to endorse raising the minimum wage from $5.15 to $7.25 per hour, after plans put forward by Sen. Edward Kennedy (D-Mass.) and Rep. George Miller (D-Calif.), and then to lobby in support of the change.
With any such outcome facing long odds, the company’s detractors are trying to tell the story of what they call Wal-Mart’s “”Potomac two-step”” on Capitol Hill.
“”We want to hold Lee Scott to his word,”” said Nu Wexler, spokesman for Wal-Mart Watch, another labor-funded group targeting the company.
Tom Kiley, a spokesman for House Education and the Workforce ranking member Miller, said Democrats are disappointed with Wal-Mart’s absence from the debate.
“”At the time [of Scott’s statement], we welcomed that,”” he said. “”Since then, we haven’t heard from them at all. That’s unfortunate, obviously.””
This sparring comes as the company, expanding into urban areas dominated in Congress by Democrats, has stepped up its outreach to members of the minority party.
Wal-Mart in recent years has directed an increasing portion of its political donations to Democrats, giving them nearly 30 percent of their political action committee dollars so far this cycle. That’s still just a fraction of what the company gives to Republicans, but it’s up from the minuscule 2 percent a decade ago, according to figures available from PoliticalMoneyLine.com.
Scott, the chief executive, huddled with members of the Congressional Hispanic Caucus in February, and top Wal-Mart officials met with members of the Congressional Black Caucus last spring.
But Republicans have remained the company’s most stalwart defenders on tax, health care and labor issues, among other things. And this summer, debate over a minimum wage increase has taken on a highly partisan tone. While most GOPers argue bumping up the pay standard would hurt small businesses, Democrats counter that the current wage, untouched in a decade, traps millions below the poverty line.
The minority party is rallying around the issue as an antidote to flag-burning, gay marriage and estate tax debates stoked by Republicans to rile their own base for the upcoming elections.
Last week, eight Senate Republicans joined 43 Democrats and an Independent in supporting a wage hike, but the votes fell short of the 60 required to clear its passage. Senate Democrats are vowing to keep the issue front and center, with Minority Leader Harry Reid (Nev.) now tying the matter to a Congressional pay increase.
On the House side, Democrats are trying to attach a minimum wage increase to spending bills. After successfully adding it to the Labor-HHS appropriations bill, House Republican leaders pulled the bill from the floor schedule. House GOP leaders are signaling they will not allow a floor vote on the minimum wage this year, and it is unclear how that standoff will be resolved.
In addition, a flurry of minimum-wage initiatives may end up on ballots nationwide, designed both for their ability to improve Democratic voter turnout as well as for the goal of improving pay for low-income workers.
For his part, Wal-Mart lobbyist Culpepper said he remains available to explain Wal-Mart’s position on the wage issue.
“”One of our key missions is to meet with Members on Capitol Hill to correct the record about what our critics have said about us,”” he said.
June 5, 2006
WAKEUPWALMART.COM RUNS A FULL-PAGE AD WITH AN OPEN LETTER TO SHAREHOLDERS STATING
Bentonville, AR – Today, WakeUpWalMart.com, America’s campaign to change Wal-Mart, released a letter to Wal-Mart’s shareholders entitled, “”Wal-Mart Can Do Better.”” The letter will be handed out to shareholders at Wal-Mart’s annual shareholder meeting and will run in a statewide, full page ad in the Arkansas Democratic Gazette.
The “”Wal-Mart Can Do Better”” letter reminds shareholders of Sam Walton’s 10 rules for success. Rule #2 on Sam’s list was to value your associates. The letter states, “”Sadly, Wal-Mart’s current management has abandoned Sam’s vision and forgotten Sam’s rule #2 – value your associates.””
In the last few months, Wal-Mart’s current management has decided to dramatically slash workers’ hours, cut over 200,000 employees from full-time to part-time, leave 54% of Wal-Mart’s workers without company health care, not to adopt a “”zero tolerance policy”” on child labor or address the fact that 1.6 million female employees are suing Wal-Mart for gender discrimination.
“”Rather than value Wal-Mart’s employees or reflect the best of Sam Walton’s vision, Wal-Mart’s current leadership has decided to invest in right-wing war rooms and make store changes that are destroying worker morale and putting Wal-Mart’s public image at risk,”” said Paul Blank, campaign director, WakeUpWalMart.com.
The letter calls on Wal-Mart’s shareholders to join with WakeUpWalMart.com and join the movement to change Wal-Mart into a better business “”on behalf of its employees, its shareholders and the American people.””
The letter states, “”What we are asking for – paying 1.3 million employees a living wage, providing affordable health care, and creating a safe and just work environment – is not only the right thing to do, but will make Wal-Mart a more successful company.””
The full text of the letter is below and is available at www.WakeUpWalMart.com.
“”WAL-MART CAN DO BETTER””
Share your profits with all your associates, and treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations.
Rule #2, Sam Walton’s 10 Rules for Success
Dear Wal-Mart Shareholders,
One of Sam Walton’s guiding principles that made Wal-Mart a success was to value the company’s associates. Sam Walton believed Wal-Mart’s success would rise and fall based on how well, or poorly, Wal-Mart treated its workers and their families. Sadly, Wal-Mart’s current management has abandoned Sam’s vision and forgotten Sam’s rule #2 – value your associates.
The truth is the American people and their elected representatives have a hard time understanding why Wal-Mart, with $11.2 billion in annual profits, has a record which fails to reflect the best of America’s, and Sam’s, values.
We believe, and we think Sam Walton would agree, “”Wal-Mart Can Do Better.””
Wal-Mart has an incredible opportunity to “”seize the moment”” and pursue real change on behalf of its employees, its shareholders and the American people. What we are asking for – paying 1.3 million employees a living wage, providing affordable health care, and creating a safe and just work environment – is not only the right thing to do, but will make Wal-Mart a more successful company.
Just as Sam Walton understood, large profitable corporations, like Wal-Mart, have an important social responsibility and economic interest to not only be as good and great as they can be, but to be as good and great as their size and wealth affords.
In that spirit, we’re calling on all Wal-Mart shareholders to join with us at WakeUpWalMart.com in our national movement to change Wal-Mart and change America for the better.
We hope you will join with us.
Sincerely,
WakeUpWalMart.com
May 26, 2006
NEW EVIDENCE SHOWS WAL-MART WORKING CLOSELY WITH RIGHT WING ATTACK GROUP
GROUP CALLS ON WAL-MART TO FIRE BOB MCADAM AND LEE CULPEPPER AND END RELATIONSHIP WITH RIGHT WING ATTACK DOG, RICK BERMAN
Washington, D.C. – WakeUpWalMart.com, America’s campaign to change Wal-Mart, has uncovered a close and working relationship between high-ranking senior Wal-Mart executives, Bob McAdam and Lee Culpepper, and right-wing radical Rick Berman.
Earlier this year, Rick Berman, a well-known right-wing radical and defender of mercury poisoning, drunk driving and Big Tobacco, launched a campaign attacking hard-working union members. At the time of Berman’s launch, Wal-Mart spokesman, Sarah Clark, publicly denied any involvement or connection between Wal-Mart and Berman’s group, the Center for Union Facts. According to the Los Angeles Times, Clark said Wal-Mart had “”never heard”” of Berman.
Now, Wal-Mart publicly admits it has not only heard of Berman, but has been working with him. The Detroit Free Press reports, “”Wal-Mart said it has a relationship in which it exchanges union information with Berman, the group’s head.”” [Detroit Free Press, 5/24/06
In addition, an investigation by WakeUpWalMart.com confirms that two senior Wal-Mart officials, Bob McAdam and Lee Culpepper, have worked closely with Berman on “”special projects”” that have related to defending Big Tobacco, defending mercury poisoning, and other right-wing causes.
For example, Bob McAdam worked with Phillip Morris at the Tobacco Institute during the same period of time that Phillip Morris contributed $900,000 to Berman’s pro-tobacco campaign. Lee Culpepper worked at the National Restaurant Association. The NRA’s members contributed to Berman’s pro-mercury poisoning campaign. In fact, Lee Culpepper, while working at the National Restaurant Association described his relationship with Berman in these glowing terms, “”I’ve worked with Rick for years, and indeed he is a lightning rod. People have strong feelings about him, but he helps the industry.””
“”Under the leadership of two new senior officials, Wal-Mart has turned to the radical right-wing to try and salvage its declining public image,”” said Paul Blank, campaign director for WakeUpWalMart.com.
Blank continued, “”The American people will be deeply disturbed to learn Wal-Mart has developed such a close relationship with a right-wing fanatic like Rick Berman.
It appears Bob McAdam, best known as Big Tobacco’s liar-in-chief, has created a culture of lies and deception at Wal-Mart that threatens the company’s credibility with the media, consumers and the American people. Since Bob McAdam joined the company, Wal-Mart has misled the public on its health care statistics, lied on its banking application, and falsely claimed it didn’t know it was hiring illegal workers. Lee Culpepper’s relationship with Berman is equally reprehensible.
America must wonder why Wal-Mart wants to be associated with three individuals who have spent their careers lobbying against the public interest including defending mercury poisoning, drunk driving, and big tobacco.
Unless Wal-Mart wants to be forever associated with these abhorrent causes, Wal-Mart needs to immediately fire its right-wing attack dogs Bob McAdam and Lee Culpepper, end its disgusting association with Rick Berman’s group, and issue an apology to all of the hard-working families demonized by Mr. Berman.””
May 26, 2006
WAKEUPWALMART.COM EXPOSES WAL-MART’S NEW HEALTH CARE PLAN FOR PART-TIME WORKERS
DOCUMENTS EXPOSE WAL-MART’S SECRET PLAN TO CUT WORKERS’ HOURS, SHIFT TO A MAJORITY PART-TIME WORKFORCE, AND CUT BENEFITS FOR FULL-TIME WORKERS “”TRANSITIONED”” TO PART-TIME
Washington D.C. – Today, WakeUpWalMart.com, America’s campaign to change Wal-Mart, released copies of Wal-Mart’s new health care benefits plan for current part-time employees and full-time employees “”transitioned”” to part-time. The health care documents were given to the group by Wal-Mart employees concerned about the terrible effects that Wal-Mart’s new policies, in particular the drastic transition from full-time to part-time, are having on employee morale, customer service and store performance.
The first document, a 7-page booklet, titled “”My Benefits: New Peak Time Benefits: Making a Difference for You,”” details the specific changes to Wal-Mart’s health care benefits which the company announced last month. The second document is a memo from Wal-Mart’s “”administrative committee”” to all “”full and peak-time hourly associates,”” titled a “”Summary of Material Modifications to Associates’ Health and Welfare Plan.””
Both documents were given to employees as part of a special enrollment period which runs from May 15-26, 2006. The special enrollment period, however, is not open to all Wal-Mart associates. Only associates who are part-time and have more than 1 year of service but less than 2 years of service (part-timers with more than 2 years of service are only eligible if they enroll their dependent) and full-time employees who were just ‘transitioned’ to part-time status, are eligible to enroll.
“”Based on these new documents, either Wal-Mart falsely claimed it would offer its low cost plan to 50% of its Associates, or Wal-Mart has ‘transitioned’ many more workers to part-time than has been reported publicly. Either way, Wal-Mart’s rhetoric doesn’t match reality, and Wal-Mart workers are paying way too high a price,”” said Paul Blank, campaign director for WakeUpWalMart.com.
Based on the two documents, it is obvious Wal-Mart’s “”new health care changes”” will do little to expand health care coverage for many of its 1.3 million employees. Rather, Wal-Mart’s health care changes are clearly structured to cut health care costs and minimize the public relations disaster from slashing over 200,000 full-time jobs and replacing or transitioning them with low paid part-time workers.
According to a JP Morgan report issued in January 2006, as well as the infamous internal health care memo authored by Wal-Mart Executive Vice President Susan Chambers, Wal-Mart publicly states it intends to shift hundreds of thousands of full-time workers to part-time status. In the two health care documents, Wal-Mart coldly refers to this shift as a “”transition”” and now describes part-time workers as “”peak-time”” employees.
Under the new health care changes, all ‘transitioned’ employees lose most of their benefits, including dental, life insurance and disability immediately, and will lose their health care benefit after one year. In addition, part-time Associates are unable to enroll their spouses. The lack of spousal coverage is consistent with Wal-Mart’s desire to cut health care costs by decreasing spousal coverage. As Chambers states in the memo, “”spouses are by far the most expensive plan members to cover.””
Unfortunately, Wal-Mart’s new health care plans continue to remain unaffordable for the average Wal-Mart employee. Wal-Mart’s most affordable health care option, the Value Plan, has a $3,000 deductible for family coverage and several other deductibles for prescription drug coverage and hospital procedures. Based on all of the premiums and deductibles in the so-called ‘Value’ plan, a part-time Wal-Mart employee could have to pay up to 58% of his/her salary for an individual plan and up to 93% for family coverage.
Most disturbingly, newly transitioned employees who take advantage of this special enrollment will lose any money they have already spent on their deductible and will once again have to pay the full $3,000 deductible.
“”For the sake of Wal-Mart’s workers, their families, and the American taxpayer, we call on Lee Scott and Wal-Mart to propose real health care changes that don’t dangerously discriminate against single, uninsured part-time workers and exclude health care coverage for spouses. Wal-Mart’s plan to expand health care coverage to employees while making it more unaffordable through lower pay and less hours is deceptive and a national disgrace,”” added Blank.
Based on the two leaked health care documents, Wal-Mart workers will face significant restrictions under the new health care changes, including:
1) Only uninsured part-time Wal-Mart workers, who also insure their dependents, are eligible to enroll during this special enrollment period.
- “”If you are a peak-time hourly Associate who has been employed by Wal-Mart for more than two years and are not currently enrolled in any medical coverage option offered by the AHWP, you may enroll yourself in any of the available peak time medical coverage options (except HSA Qualified or HSA Qualified Performance plans), but only if you enroll your dependent children.”” (Memo: Summary of Material Modifications to Associates Health and Welfare Plan; p. 2)
2) Spouses of part-time associates will not be eligible during this enrollment period.
- “”Your spouse is not eligible for Medical coverage.”” (My Benefits: New Peak Time Benefits Making a Difference for You: page 3)
3) Former full-time workers, now reduced to part-time workers, will lose an array of additional benefits.
- “”Dental, Optional Life Insurance, Company-Paid Life Insurance, Dependent Life Insurance, Accidental Death and Dismemberment, Short-term Disability, Short-term Disability Plus, and Long-Term Disability – will stop at the end of the pay period in which you transition.”” (My Benefits: New Peak Time Benefits Making a Difference for You: page 4)
4) Former full-time Wal-Mart workers, now reduced to part-time workers, who change plans during this “”Special Enrollment”” period will lose credit for any money they have already spent against their deductible. Therefore, a worker could have to pay as much as $3,000 in deductibles twice.
- “”If you switch Medical plans, or if you change your deductible during the Special Enrollment or within 60 days due to your transition, your annual deductible will start over. Amounts already incurred toward your annual deductible will not carry over to your new plan option or new deductible.”” (My Benefits: New Peak Time Benefits Making a Difference for You: page 4)
5) Wal-Mart made no changes to the cost of the deductible for family or individual coverage on any plans. Deductibles on Wal-Mart’s most affordable plan are as high as $3,000 for family coverage and $1,000 for individual coverage.
- Copies of the two Wal-Mart health care documents describing these health care changes are available for download at www.WakeUpWalMart.com.